Major Newspapers Launch Lawsuit Against OpenAI, Microsoft over AI Copyright Violations

In a move that could reshape the relationship between news publishers and AI giants, eight prominent newspapers owned by investment firm Alden Global Capital have filed a lawsuit against OpenAI and Microsoft, alleging copyright infringement.

Axios reports that the legal battle escalated on Tuesday when the lawsuit was filed in the Southern District of New York, marking the latest development in the ongoing clash between news organizations and tech companies over the use of copyrighted content to train artificial intelligence models.

The newspapers involved in the lawsuit are some of the most prominent newspapers in the Alden Global Capital portfolio, including the New York Daily News, Chicago Tribune, Orlando Sentinel, South Florida Sun Sentinel, San Jose Mercury News, Denver Post, Orange County Register, and St. Paul Pioneer Press. They are being represented by the same law firm that is supporting the New York Times in its separate lawsuit against OpenAI and Microsoft.

At the heart of the complaint lies the accusation that OpenAI and Microsoft have been “purloining millions of the Publishers’ copyrighted articles without permission and without payment” to fuel the commercialization of their generative AI products, such as ChatGPT and Microsoft Copilot. The newspapers allege that the tech giants have removed crucial metadata, including journalists’ names and article titles, from the content used to train their AI models.

The lawsuit cites instances where ChatGPT has fabricated or distorted information, claiming, for example, that the Denver Post published research suggesting smoking could cure asthma – a claim the newspaper vehemently denies. Similarly, the lawsuit alleges that ChatGPT falsely attributed a recommendation for a recalled and potentially dangerous baby lounger to the Chicago Tribune.

These instances of “hallucinations,” as they are called in the AI industry, have raised concerns about the reputational damage such misinformation could inflict on established news outlets. The newspapers argue that OpenAI and Microsoft have engaged in unauthorized use of their trademarks, further compounding the alleged infringement.

The outcome of this legal battle could have far-reaching consequences for the news industry and its compensation model in the AI era. As generative AI tools threaten to disrupt the flow of online traffic to news websites, publishers are grappling with the potential loss of advertising revenue from search results – a critical source of income for two decades.

While some news organizations including the Financial Times have opted to strike lucrative deals with AI firms, allowing the use of their content in exchange for millions of dollars annually, others, like Alden Global Capital’s newspapers, have chosen to pursue legal action. The decision by these major newspapers to join forces with the New York Times in suing OpenAI and Microsoft adds substantial weight to the claims of copyright infringement and sets the stage for a pivotal legal battle that could redefine the rules of engagement between news publishers and AI companies.

Read more at Axios here.

Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.