The New York Times filed a legal case against Microsoft and OpenAI on Wednesday, claiming that the latter's popular AI chatbot ChatGPT violated copyright laws and abused the newspaper's intellectual property, calling for "billions of dollars in statutory and actual damages" to be paid. The Times stated that Microsoft and OpenAI crafted a business model based on "mass copyright infringement" by exploiting and retaining large parts of the copyrightable expression found in The Times' uniquely valuable works.
On Wednesday, The New York Times filed a legal action against Microsoft and OpenAI, the parent organization of well-known AI chatbot ChatGPT, alleging copyright violation and unauthorized use of the news outlet's intellectual property to train huge language models.Microsoft has a financial stake in OpenAI, having granted it access to its Azure cloud computing platform. The media company stated in a complaint submitted to the U.S. District Court for the Southern District of New York that it aims to make Microsoft and OpenAI answer for the "billions of dollars in statutory and actual damages" they owe for allegedly copying and using The Times's work without consent.CNBC has attempted to contact Microsoft and OpenAI for feedback.The Times sent an email expressing that they "acknowledge the potential of GenAI for the public and journalism," but added that journalistic material should not be utilized for commercial purposes without permission from the original source.
"The tools were created and continue to utilize independent journalism and other content that has only been attainable due to our efforts and those of our colleagues, with much cost and expertise invested in reporting, editing, and fact-checking," the Times pronounced. "The copyright regulations protect our journalism and other content. If Microsoft and OpenAI are seeking to take advantage of our work for commercial purposes, the law necessitates that they must solicit our authorization first. This has not happened."The Times has retained the services of Susman Godfrey, the litigation firm that assisted Dominion Voting Systems in their allegations against Fox News that eventually resulted in a $787.5 million agreement. Susman Godfrey is also representing writer Julian Sancton and others in a different court case against OpenAI and Microsoft, alleging that the companies have taken copyrighted materials without authorization to train several editions of ChatGPT.
One of several media organizations is suing companies involved in the development of some of the most advanced AI models, as they allege that the companies have used content to train their AI programs. OpenAI, the developer of GPT, a language model with billions of parameters, obtained its information from public web data until 2021. This has caused an issue for publishers and creators as AI programs such as ChatGPT, Dall-E, Midjourney and Stable Diffusion are using and reimagining their content, resulting in material that can be similar to the original. To try and solve this issue, OpenAI had a partnership with Axel Springer in December, which includes Business Insider, Politico, Bild and Welt - GPT would be allowed to license content from them in exchange for an undisclosed fee. The New York Times has now sued Microsoft and OpenAI, claiming that they have created a business model based on "mass copyright infringement", and that GPT models exploit and often retain parts of intellectual property from their works.
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