OpenAI Won First Round in News Outlets' Copyright Lawsuit Over AI Data

A U.S. District Court in New York dismissed a lawsuit on Thursday that alleged OpenAI misused thousands of articles from news sites Raw Story and AlterNet to train its AI models, including ChatGPT. Judge Colleen McMahon ruled that the outlets had not shown sufficient harm to support their claims, though she left the door open for the plaintiffs to amend and refile their complaint.

Key Details of the Dismissal

• Insufficient Harm: Judge McMahon indicated that Raw Story and AlterNet had not demonstrated a “cognizable injury,” though they may attempt to amend their complaint. She expressed “skepticism” about whether they could show a recognizable injury under current law.

• Case Background: Raw Story and AlterNet claimed OpenAI used thousands of their articles without permission to train its popular AI models, asserting that ChatGPT can reproduce their copyrighted content on command. The lawsuit, filed in February, was part of a series of similar cases where authors, artists, and publishers have alleged copyright violations by AI companies.

This case differs from others in that Raw Story and AlterNet did not accuse OpenAI of directly infringing on their copyrights. Instead, they argued that OpenAI unlawfully removed copyright management information (CMI) from their articles—a claim Judge McMahon ultimately dismissed.

“The alleged injury for which Plaintiffs truly seek redress is not the exclusion of CMI,” Judge McMahon stated, but rather “the use of Plaintiffs' articles to develop ChatGPT without compensation.”

Statements from the Parties

Matt Topic, attorney for Raw Story and AlterNet, expressed confidence in revising the complaint to address the court’s concerns:

“We are certain we can address the concerns the court identified through an amended complaint,” Topic said.

OpenAI, meanwhile, maintains that its data collection practices fall under fair use:

"We build our AI models using publicly available data, in a manner protected by fair use and related principles, and supported by long-standing and widely accepted legal precedents," an OpenAI spokesperson said.

The Growing Wave of AI-Related Copyright Lawsuits

The lawsuit by Raw Story and AlterNet adds to a growing list of copyright complaints from authors, artists, and media companies against AI developers. The New York Times filed a similar lawsuit against OpenAI in December, becoming the first major media outlet to bring copyright claims against an AI company.

With AI companies often training models on publicly available data, these cases highlight the growing debate over fair use and compensation when copyrighted material is used for training purposes. Judge McMahon’s ruling emphasizes the need for plaintiffs to show concrete harm under existing copyright and data use laws.

Looking Ahead: Copyright in the Era of AI Training

This initial ruling underscores the challenge for media companies and creators seeking compensation for the use of their content in AI training. As Judge McMahon noted, the question of whether another legal theory might elevate this type of harm “remains to be seen.” If Raw Story and AlterNet amend their complaint and proceed, the case could have broader implications for copyright enforcement in the age of AI, potentially influencing how courts define “fair use” in AI model training.

Editor’s Note: This article was created by Alicia Shapiro, CMO of AiNews.com, with writing, image, and idea-generation support from ChatGPT, an AI assistant. However, the final perspective and editorial choices are solely Alicia Shapiro’s. Special thanks to ChatGPT for assistance with research and editorial support in crafting this article.