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Judge allows newspaper copyright lawsuit against OpenAI to proceed

On Wednesday, a Manhattan judge, Sidney Stein, ruled against the majority of motions filed by OpenAI and Microsoft to dismiss parts of a lawsuit accusing them of using copyrighted news stories from organizations like the New York Daily News and the New York Times to train AI products.
The 2024 lawsuit alleges that OpenAI and Microsoft misappropriated the work of journalists without regard for their legal rights, harming the newspapers' subscription-based business model by providing the content for free.
Judge Stein rejected motions to dismiss claims related to the statute of limitations, trademark dilution, and stripping content management information, although some individual claims against Microsoft and OpenAI were dismissed, and the core elements of the lawsuit were preserved.
Lawyers for the newspapers welcomed the ruling, with Steven Lieberman stating, "We get to go forward with virtually all of our claims intact, including all of the copyright filings," while OpenAI maintains its AI model building relies on publicly available data and is grounded in fair use and supportive of innovation, noting that hundreds of millions of people use ChatGPT to improve their daily lives.
With the core claims intact, the lawsuit seeking unspecified damages, restitution of profits, and a court order to prevent the companies from using the newspapers' materials to train chatbots will proceed to trial, potentially setting a precedent regarding fair use in the AI industry and impacting the financial viability of news publishing.

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The Seattle Times

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