OpenAI
OpenAI defends its training practices, while critics argue online content still deserves copyright protection and compensation. Jernej Furman/WikiMedia Commons

Hundreds of local newspaper publishers in the United States have filed a major lawsuit against Microsoft and OpenAI, claiming that these tech companies were using their journalism without permission to train powerful AI systems.

Filed in a New York federal court, the lawsuit represents 35 publishing companies that operate around 400 newspapers across 33 states. The publishers claim that the companies copied their original reporting to train AI models like ChatGPT without offering any compensation, deepening the financial issues local journalism already faces.

What's Behind the Lawsuit?

Publishers claim that OpenAI used newspaper articles from their sites, including paywalled content, to train their AI models without permission. Additionally, they also accused Microsoft of providing financial backing to OpenAI and supplying the computing infrastructure behind its AI technology. They argue that AI companies have built valuable products with content they've never paid for. Additionally, they claim that they've invested years of hard work and money in producing original journalism.

According to them, this not only violates copyright but also makes it hard for news organisations, as AI-generated answers provide readers with information that they need without directing them to visit news sites. As a result, this leads to lower traffic, lost advertising revenue, and fewer subscriptions. They're claiming that AI companies are 'stealing, stripping and misusing' journalism for their own personal gain.

Publishers Fear the Future of Local Journalism

The lawsuit, newspaper companies argue, is about protecting the future of local journalism, not simply resolving a copyright dispute. They believe that AI companies are the ones benefiting financially from news content, while the newsrooms that produced it receive no compensation.

The complaint also notes that many local newspapers are under financial pressure with declining readership and lower advertising revenues. According to them, they're losing readers to AI-produced answers, making it harder for them to stay in business, and without accountability, the future of independent local news could be at risk.

OpenAI Disputes Allegations

OpenAI pushed back against the lawsuit, insisting that its training methods comply with the existing copyright law. The company argues that using a wide range of information online helps them enhance their systems, allowing them to do tasks like generating text, assisting users with writing, research, and answering questions.

Critics, however, contend this, claiming the publicly available material isn't the same as content that's license-free and shouldn't be used commercially without consent.

Michael Bolden, the dean of UC Berkeley's School of Journalism, says that published content online doesn't lose its copyright protection. 'There is an intellectual effort that goes into producing work, including journalism, and companies need to be compensated for that,' he said in an interview.

Why This Case Matters

This isn't the first lawsuit that accuses AI companies of using news content without permission. Publishers such as The Intercept and The New York Times have also taken legal action against Microsoft and OpenAI.

Experts believe that the court's decision could determine how publishers protect their licensed material and whether or not AI companies need permission and should be compensating news outlets when using their journalism to train AI models in the future.

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