Home Community Insights OpenAI And Microsoft Face Legal Action as News Industry Intensifies Scrutiny on AI-Generated Content

OpenAI And Microsoft Face Legal Action as News Industry Intensifies Scrutiny on AI-Generated Content

OpenAI And Microsoft Face Legal Action as News Industry Intensifies Scrutiny on AI-Generated Content

Artificial Intelligence Research organization OpenAI and tech giant Microsoft are currently embroiled in legal action after being sued by the Center for Investigative Reporting (CIR), as the news industry intensifies scrutiny of AI-generated news content.

The CIR lawsuit centers on the use of copyrighted news content by AI models developed by OpenAI and supported by Microsoft. It accused OpenAI of copyright infringement, alleging that the tech company copied used, abridged, and displayed CIR valuable content without its permission or authorization, as well as lack of compensation.

In a press release Monika Bauerlein, CEO of the nonprofit, accused the defendants of free rider behavior.

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She said,

“OpenAI and Microsoft started vacuuming up our stories to make their product more powerful, but they never asked for permission or offered compensation, unlike other organizations that license our material. This free-rider behavior is not only unfair, it is a violation of copyright. The work of journalists, at CIR and everywhere, is valuable, and OpenAI and Microsoft know it.”

The CIR therefore stated that it’s seeking actual damages and Defendants’ profits, or statutory damages of no less than $750 per infringed work and $2,500 per DMCA violation, referring to the Digital Millennium Copyright Act.

OpenAI and Microsoft are yet to respond on the matter. Both tech companies are expected to defend their use of Al technologies and the measures they have in place to respect intellectual property rights.

The CIR lawsuit comes at a time when the news industry is increasingly vocal about the implications of Al on their business models. Several of these organizations argue that Al-driven platforms, which often aggregate and summarize news content, undermine their revenue streams. They also express concerns about the potential for Al to spread misinformation and erode public trust in journalism.

Recall that in December 2023, the US news organization the New York Times sued ChatGPT maker OpenAI over copyright infringement claims. The lawsuit claims “millions” of articles published by the New York Times were used without its permission to make ChatGPT smarter, and claims the tool is now competing with the newspaper as a trustworthy information source.

The suit further alleged that when asked about current events, ChatGPT will sometimes generate verbatim excerpts from New York Times articles, which cannot be accessed without paying for a subscription.

Also, fast forward to April 2024, Eight daily newspapers reportedly sued OpenAI and Microsoft, accusing the tech companies of illegally using news articles to power their A.I. chatbots.

The newspapers which include; The New York Daily News, The Chicago Tribune, The Orlando Sentinel, The Sun Sentinel of Florida, The San Jose Mercury News, The Denver Post, The Orange County Register, and The St. Paul Pioneer Press, filed the complaint in federal court in the U.S. Southern District of New York.

In the complaint, they accused OpenAI and Microsoft of using millions of copyrighted articles without permission to train and feed their generative A.I. products. The lawsuit however did not demand monetary damages, but only asked for a jury trial and said the publishers were owed compensation for the use of the content.

With all these legal battles against OpenAI and Microsoft, it is likely to set a precedent for how Al technologies interact with copyrighted content and the responsibilities of tech companies in ensuring credible dissemination of information.

Additionally, AI technology also has a significant aspect on web accessibility in the form of screen readers. Screen readers are essential tools for individuals with visual impairments, enabling them to navigate digital content through auditory feedback or Braille displays. As AI evolves, ensuring that screen readers provide accurate and comprehensive access to information becomes crucial. This not only highlights the importance of compliance with accessibility standards but also underscores the need for tech companies to prioritize inclusivity in their innovations.

As the news industry continues to adapt to the digital age, this lawsuit highlights the critical need for permission and regulation to balance innovation with the protection of intellectual property and the sustainability of quality journalism.

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