By Nitika Sinha and Chirag Tuteja
The New York Times (NYT) has become the first major American news publisher[1] to take legal action against OpenAI and its primary investor Microsoft Corporation, alleging the unlawful use of copyrighted content. This lawsuit could have a profound impact on the evolving relationship between generative AI and copyright law, particularly regarding the principle of fair use. Ultimately, its outcome may shape the future of AI model development and the legal framework surrounding it.
The case is a part of a broader wave of lawsuits challenging the alleged practice of scraping vast amounts of content from the internet- without compensation- to train large language models. Writers, journalists, and other creatives who publish their works online have voiced concerns that AI system could learn from their original material and generate competing content without appropriate remuneration.
The legal battle raises critical questions:
- Should AI companies be allowed to use publicly available content without compensating its creators?
- Does fair use protect this practice, or does it constitute copyright infringement?
As this case unfolds, its implication will likely to influence AI regulation, intellectual property rights and the broader digital landscape.[2]
Navigating the Intellectual Property Dilemma
The legal clash between The New York Times, OpenAI and Microsoft unfolds within the intricate domain of Intellectual Property law. At the core of this dispute lies a critical copyright issue- how the protection of creative works is challenged by the rise of artificial intelligence.
Under the U.S. Copyright Act of 1976,[3] creators like New York Times- hold exclusive rights to reproduce, distribute and publicly display their works. The unauthorized use of these works to train AI models could constitute copyright infringement.
Contentions by New York Times
- It centers on the use of copyrighted works in developing generative AI tools specifically, OpenAI’s ChatGPT and Microsoft’s Bing Chat (Copilot). These tools are large language models (LLMs) trained on extensive text corpora. The NYT alleges that OpenAI infringes on copyrights through the unlicensed and unauthorized use and reproduction of its works during model training.
- It poses a significant threat to high-quality journalism. If readers can easily and at no-cost generate summaries- or near verbatim reproduction- of the NYT’s content using ChatGPT. It undermines the necessity to purchase direct accessibility from the publisher, thereby hindering its ability to fund its journalism.
- The NYT has engages with these tech firms regarding the use of its intellectual property seeking an amicable resolution that includes commercial agreements and safeguard around AI products. However, the discussions were stalled.
- NYT does not specify a monetary claim, but states that the defendants should be held accountable for billions of dollars in statutory and actual damages. The suit calls for the destruction of any ChatGPT models and training data that incorporate the New York Time’s copyrighted material.
Contentions by OpenAI
- OpenAI asserts that its collaborations with news organizations, including partnerships with entities like the Associated Press, exemplifying its commitment to lawful AI development.
- The company maintains that utilizing copyrighted works for training its technologies constitutes fair use[4] under the current law.
The future of authorship: AI- Generated Content and Copyright Implication
The lawsuit filed by The New York Times against OpenAI and Microsoft marks a pivotal moment in the intersection of artificial intelligence and copyright law. This case, the first of its kind within the news industry, contends that generative AI models jeopardize traditional publishing business models and undermine the value of substantial investments in quality journalism.
However, resisting the advancements of AI may be as futile as attempting to halt a tidal wave. Publishers, including The New York Times, acknowledge the inevitability of AI’s integration into various sectors. Their primary objective is to ensure that this technological evolution includes fair compensation for content creators whose works fuel these AI systems.
The outcome of this lawsuit[5] has the potential to set a significant precedent across the media landscape. The central legal question– whether employing copyrighted material to train AI models constitute a violation of copyright law– remains unresolved. This case illustrates that a fine balance is required to foster AI innovation while safeguarding the rights and interest of original content creators. While AI technologies like ChatGPT and Copilot offer remarkable capabilities; their development should not come at the expense of fundamental copyright protection of original works.
Feba Sara Vinu, Assessment Intern at S.S.Rana & Co. has assisted in the research of this article.
[1] https://www.nytimes.com/2023/12/27/business/media/new-york-times-open-ai-microsoft-lawsuit.html
[2] https://www.ccn.com/news/technology/microsoft-copilot-pro-vs-chatgpt/
[3] Section 106, US Copyright Act 1976 (Exclusive rights)
[4] Section 107, US Copyright Act, 1976