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OpenAI’s Legal Landscape: Contributory Infringement Claims and Dismissals

In a recent ruling, Judge Stein highlighted the potential for contributory infringement claims against OpenAI, suggesting that the company may have had a duty to investigate if its users were infringing on copyright. Stein emphasized that the ongoing interaction between OpenAI’s platforms and their users lends weight to these claims, undermining the company’s defense that its AI tools, like ChatGPT, are largely used in non-infringing ways.

OpenAI’s Victories Amidst Challenges

While the ruling brought forth concerns for OpenAI, it also saw the dismissal of certain claims from the New York Times (NYT), a move that may have benefited news publishers to some extent. Notably, the judge rejected allegations that ChatGPT profited unfairly from “hot news” content, including postings from the NYT’s Wirecutter. The judge pointed out that the NYT did not convincingly demonstrate a lack of attribution, as ChatGPT was observed to cite the NYT when referencing information from these posts. Moreover, such claims were deemed pre-empted by the Copyright Act, allowing OpenAI to proceed with its motion to dismiss.

Additionally, a claim regarding the alleged removal of copyright management information (CMI) was also dismissed. Stein ruled that the mere reproduction of NYT content by ChatGPT, without accompanying CMI, does not necessarily substantiate the claim. He noted that under the Digital Millennium Copyright Act (DMCA), news organizations must prove that ChatGPT’s outputs closely mimic the original material, which poses a significant challenge for these claims. Any attempt to base accusations solely on excerpted content, Stein warned, could lead to extensive DMCA liabilities, which would encompass issues like the use of block quotes absent CMI.

In response to the ruling, an OpenAI representative refrained from offering detailed comments but reiterated the company’s longstanding position that the use of copyrighted material for AI training falls under fair use guidelines. Recently, OpenAI cautioned that a legal ruling adverse to this perspective could hinder the U.S. in the race for AI leadership against nations like China.

“ChatGPT assists in fostering human creativity, propelling scientific discoveries, and enhancing the daily lives of millions,” the spokesperson stated. “Our models are designed to facilitate innovation, using publicly available information and operating within fair use boundaries.”

Source
arstechnica.com