Authors Take Legal Action: Microsoft and OpenAI Face Copyright Infringement Lawsuit

Thomas

January 6, 2024

Authors Nicholas Basbanes and Nicholas Gage filed a class-action complaint, alleging Microsoft and OpenAI “simply stole” their copyrighted works. This lawsuit follows The New York Times’ similar suit against Microsoft and OpenAI, the creators of the ChatGPT AI chatbot.

The new suit emphasizes the defendants’ acknowledgment of the need to compensate copyright owners, as stated after The New York Times’ lawsuit.Basbanes and Gage are aiming to seek damages of up to $150,000 per infringed work, alleging that Microsoft and OpenAI systematically pilfered the works of a class of writers.

The proposed class would include authors or legal owners of copyrights used by the defendants to train their large language models, estimating tens of thousands of affected individuals. This lawsuit broadens the scope compared to a previous case involving fiction writers.

Attorney Mike Richter, representing Basbanes and Gage, criticizes OpenAI for devaluing writers’ work by using copyrighted material without permission. The lawsuit claims OpenAI’s system relies on ingesting massive amounts of written material, including books authored by Basbanes and Gage.

Microsoft and OpenAI have not yet responded to CNBC’s request for comment on the new lawsuit. The ongoing conversation between OpenAI and The New York Times has been described as productive and constructive.

It is noteworthy that OpenAI, when sued by The New York Times, expressed respect for content creators’ rights and commitment to collaborating for mutual benefit. The statement conveyed surprise and disappointment at the development, expressing hope for a mutually beneficial resolution.

Summary

Basbanes and Gage’s lawsuit adds to the legal challenges faced by Microsoft and OpenAI, alleging copyright infringement in the development of their AI systems. The outcome remains uncertain as legal proceedings unfold.