DC IP Lawyers are witnessing a surge in legal battles surrounding OpenAI’s ChatGPT generative AI, despite concerns about AI’s impact on employment. Here’s a rundown of the prominent disputes involving OpenAI thus far:
The Copyright Clash: On December 27th, 2023, the New York Times initiated legal action against both OpenAI and its investor, Microsoft, citing systematic copyright infringement. Shortly after, publishers Alternet and Raw Story followed suit. Notably, OpenAI faces proposed class actions involving public figures like comedian Sarah Silverman, author Michael Chabon, and playwright David Henry Hwang. Additionally, a group of programmers is suing OpenAI and Microsoft over the alleged use of open-source software for Microsoft’s AI-based CoPilot programming tool.
These lawsuits contend that OpenAI’s training of large language models (LLMs) for ChatGPT infringes upon copyrighted content, such as articles, photos, jokes, stories, or software code, without proper licensing. In response, OpenAI and Microsoft have defended themselves, citing the doctrine of “fair use,” asserting that their AI transforms copyrighted content. This legal battle remains ongoing, with some claims dismissed while core infringement issues persist. Notably, some publishers have opted for licensing agreements with OpenAI, albeit the pending lawsuits suggest prolonged legal scrutiny ahead. DC IP Lawyers emphasize the pivotal implications of these copyright disputes for OpenAI and the broader landscape of generative AI development.
ByteDance’s Terms of Use Tangle: In December, OpenAI suspended ByteDance’s account, alleging unauthorized use of its API to train competing language models, violating OpenAI’s Terms of Use. ByteDance contends it only minimally utilized OpenAI’s API for AI model development. This dispute underscores broader concerns about customers leveraging OpenAI’s products to become competitors. Moreover, it raises questions regarding OpenAI’s stance on similar practices, given its own use of AI technology. This legal standoff illuminates the complexities surrounding the enforcement of terms of use/service in the AI realm.
Musk Enters the Fray: On February 29th, Elon Musk filed a lawsuit against OpenAI and its founder, Sam Altman, alleging breach of contract and unfair competition. Musk, a former OpenAI board member, asserts that OpenAI’s actions contradict its initial non-profit mission. OpenAI refutes Musk’s claims, asserting his prior acknowledgment of the need for the company to pursue for-profit endeavors. The case remains unresolved, underscoring tensions between OpenAI’s evolution and its founding principles.
What Lies Ahead: DC IP Lawyers anticipate continued disputes as content owners seek to navigate the evolving AI landscape. While some may pursue licensing agreements, others may resort to litigation or focus on developing their own AI capabilities. Congressional involvement may emerge over time, though swift legislative resolutions are unlikely. Amidst these complexities, legal professionals are poised to remain integral in addressing the multifaceted legal challenges arising from the proliferation of AI technologies.