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The New York Times Demands Payment from OpenAI and Microsoft for Training Data

The Battle for Control: Generative AI, Copyright Law, and the Future of Journalism

In a landmark lawsuit filed in the Federal District Court in Manhattan, The New York Times is taking on two of the biggest players in the generative AI space: OpenAI and Microsoft. At stake are allegations of copyright infringement, potentially billions of dollars in damages, and the very future of journalism itself.

Background: Generative AI and Copyright Law

Generative AI models learn from examples to create new content, often using web scraping techniques to gather training data. Some vendors argue that this is akin to fair use under copyright law, but others contend that it constitutes copyright infringement. The New York Times lawsuit marks a significant escalation in the ongoing debate.

The Allegations: Regurgitation and Fair Use

According to the complaint, OpenAI’s ChatGPT model repeatedly regurgitated copyrighted content from The New York Times when prompted with specific queries. This behavior is seen as a form of copyright infringement, with the potential for significant financial damages. However, some experts argue that this is akin to fair use under copyright law, and that users are ultimately responsible for any infringing actions.

Context: Licensing Agreements and the Future of Journalism

In recent months, several news outlets have opted to ink licensing agreements with generative AI vendors rather than fighting them in court. The Associated Press struck a deal with OpenAI in July, while Axel Springer, the German publisher that owns Politico and Business Insider, did likewise this month. However, these arrangements are not without their challenges.

Quotes: Insights from Experts and Industry Players

  • "Using a word processor to cut and paste is roughly equivalent to what The New York Times describes as ChatGPT’s behavior," said Heather Meeker, a founding partner at OSS Capital and an adviser on IP matters. "If the user intentionally makes the chatbot copy, that’s the user’s fault."
  • "The complaint gives an example of a ChatGPT session about a 2012 restaurant review," Meeker continued. "Teasing a chatbot into reproducing input is not a sensible basis for copyright infringement."

Industry Reaction: Will The New York Times’ Lawsuit Succeed?

While the lawsuit marks a significant escalation in the ongoing debate, its success remains uncertain. Some experts argue that the allegations are weak and will ultimately fail in court, while others see it as a crucial step towards establishing clear guidelines for generative AI and copyright law.

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