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New York Times Takes Legal Action: Sues Microsoft and OpenAI for Copyright Violations

The legal battle between the New York Times and Microsoft-OpenAI collaboration sheds light on the evolving challenges at the intersection of media and artificial intelligence.

by Sujay Ashok Sarkar
December 28, 2023
in Business
Reading Time: 2 mins read
New York Times
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The New York Times (NYT) has taken legal action against tech giants Microsoft and OpenAI, the creators of the renowned AI chatbot ChatGPT. The lawsuit, filed in the U.S. District Court for the Southern District of New York, accuses the companies of copyright infringement and misuse of the newspaper’s intellectual property for training large language models.

New York TimesThe Allegations By New York Times

The heart of the matter lies in the NYT’s claim that Microsoft and OpenAI have engaged in “mass copyright infringement” by utilising the newspaper’s content to train their artificial intelligence systems, specifically the GPT models. The lawsuit seeks “billions of dollars in statutory and actual damages” for what the NYT deems the “unlawful copying and use of The Times’s uniquely valuable works.”

Impact on Journalism and Commercial Use

In response, the New York Times emphasised the importance of journalistic material being used for commercial gain only with proper permission from the source. The newspaper contends that tools like ChatGPT were constructed using independent journalism and content that requires authorisation. The lawsuit argues that settled copyright law protects journalism and content, demanding that Microsoft and OpenAI should have obtained permission before utilising their work for commercial purposes.

OpenAI, in a statement, expressed surprise and disappointment over the legal action, noting ongoing productive conversations with the NYT. Microsoft, on the other hand, has yet to respond to requests for comment.

New York TimesRamifications for the Media and AI Industry

This legal clash is part of a broader trend where media organisations seek compensation from companies behind advanced artificial intelligence models, citing the alleged use of their content to train AI programs. OpenAI’s GPT models, known for their ability to generate human-like content, have drawn attention from publishers concerned about potential negative impacts on traffic and revenues. The lawsuit accuses Microsoft and OpenAI of creating a business model that relies on the mass reproduction of copyrighted material, directly competing with the New York Times content and limiting its commercial opportunities.

The lawsuit illustrates instances where GPT-4, developed by OpenAI and supported by Microsoft, produced altered versions of NYT’s material. For example, it showcased how the AI software generated text similar to a Times article but excluded critical context. The New York Times argues that the AI models not only compete directly with its content but also alter it, impacting the publisher’s revenue streams.

In response to industry concerns, OpenAI previously entered a partnership with Axel Springer, licensing content from Business Insider, Politico, Bild, and Welt. This move aimed to address concerns about the use of copyrighted material and ensure fair compensation for content creators.

The legal battle between the New York Times and Microsoft-OpenAI collaboration sheds light on the evolving challenges at the intersection of media and artificial intelligence. As AI models become more sophisticated, questions regarding intellectual property, copyright infringement, and fair compensation for content creators will likely intensify. The outcome of this lawsuit could set precedents for how AI developers engage with copyrighted material, impacting the future landscape of journalism and the ethical use of advanced AI technologies.

Read about the Babylon Director Reflecting on 1 Year of Criticism and Chaos.

Tags: Legal ActionMicrosoftNew York TimesNYTOpenAISues
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