Elon Musk's legal move against OpenAI is just one of the several lawsuits facing the ChatGPT owner. l Source: Kevin Dietsch/Getty Images
Key Takeaways
- OpenAI is facing a series of legal issues related to copyright infringement and the use of other codes for ChatGPT.
- Key plaintiffs include the New York Times and Elon Musk.
- OpenAI’s cases are part of a current broader legal trend against big tech corporations.
The Center for Investigative Reporting’s lawsuit against OpenAI is one in a series of disputes surrounding the owner of ChatGPT. From copyright disputes to trademark infringement allegations, the legal team under Sam Altman’s leadership has been kept busy addressing these issues.
Among the plaintiffs taking legal action against OpenAI are prominent entities like the New York Times and Elon Musk, alongside smaller players within the media industry. Below is an overview of the primary legal disputes entangling OpenAI.
Full List Of OpenAI Lawsuits
Here’s a full list of OpenAI lawsuits – both started by OpenAI or by other plaintiffs – as of Aug. 1, 2024:
| Plaintiffs | Allegation | Status |
|---|---|---|
| Daily News Lp vs. OpenAI and Microsoft – April 30, 2024 | Copyright Infringement | Ongoing |
| Elon Musk vs. OpenAI and Sam Altman – February 29, 2024 | Breach Of Contract | Ongoing |
| The New York Times Company vs. Openai – Dec. 27, 2023 | Copyright Infringement | Ongoing |
| Sancton vs. OpenAI – Nov. 21, 2023 | Copyright Infringement | Ongoing |
| Authors Guild vs. OpenAI – Sept. 19, 2023 | Copyright Infringement | Ongoing |
| Chabon vs. OpenAI – Sept. 8, 2023 | Copyright Infringement | Ongoing |
| T. vs. OpenAI – Sept. 5, 2023 | Breach Of Privacy Laws | Ongoing |
| OpenAI vs. Open Artificial Intelligence, Inc. – Aug. 4, 2023 | Trademark Infringement | Ongoing |
| Walters vs. OpenAI – July 14, 2023 | Misinformation | Ongoing |
| Silverman vs. OpenAI – July 7, 2023 | Copyright Infringement | Ongoing |
| Tremblay vs. OpenAI – June 28, 2023 | Copyright Infringement | Ongoing |
| PM vs. OpenAI – June 28, 2023 | Privacy Infringement And Unauthorized Data Use | Ongoing |
| Doe 3 vs. OpenAI and GitHub- Nov. 10, 2022 | Breach Of Contract | Ongoing |
| Doe 1 vs. OpenAI and GitHub – Nov. 3, 2022 | Breach Of Contract | Ongoing |
The table has been compiled by CCN based on data provided by Originality.ai.
Top Authors’ Lawsuit Dismissed
A legal setback emerged on Tuesday, July 30, 2024, for a group of authors suing OpenAI over the unauthorized use of their works to train the ChatGPT AI chatbot.
Despite claims that OpenAI engaged in unfair business practices by using copyrighted material without compensation, a federal judge has narrowed the scope of the case. While the core allegation of direct copyright infringement remains, other claims, including those for unfair competition, have been dismissed.
The court ruled that the Copyright Act preempts state-level claims related to copyrighted material, effectively blocking the authors’ attempt to bypass copyright law. This decision represents a significant hurdle for the plaintiffs, who are seeking to hold OpenAI accountable for allegedly profiting from their work without permission.
The case, which involves high-profile authors such as Sarah Silverman and Ta-Nehisi Coates, is closely watched as it could set a precedent for future disputes over AI training data.
Investigative Journalists Sue OpenAI
The Center for Investigative Reporting, producer of Mother Jones and Reveal, sued OpenAI and its largest shareholder, Microsoft, in federal court for using nonprofit content without permission or compensation.
CIR, a non-profit newsroom in the US, has registered its copyright for nearly 50 years and focuses on investigative reporting. The lawsuit highlights how AI-generated summaries of articles threaten publishers.
“OpenAI and Microsoft started using our stories to enhance their product without permission or compensation,” said Monika Bauerlein, CEO of CIR. “This free-rider behavior violates copyright and undervalues journalists’ work.”
CIR said AI products gain value from diverse viewpoints and human creativity. “CIR’s unique focus on social justice and power abuses makes its content particularly valuable.”
“For-profit corporations like OpenAI and Microsoft can’t treat-profit publishers’ work as free raw material,” Bauerlein added. “If unchecked, this practice will limit public access to truthful information, replaced by AI summaries.”
The lawsuit, based on violations of the Copyright Act and the Digital Millennium Copyright Act , was filed in the US District Court for the Southern District of New York.
Elon Musk vs OpenAI
Elon Musk lodged a complaint alleging that Sam Altman and fellow OpenAI co-founder Gregory Brockman had violated the terms of an agreement established when OpenAI was established in 2015.
At the project’s inception, Musk contributed a substantial portion of the initial funding to OpenAI, which was conceived as a non-profit research organization dedicated to the development of responsible AI systems.
However, Musk has now taken legal action against Altman and Brockman, asserting they breached the contract after OpenAI transitioned into a for-profit entity in 2019.
The complaint contends that OpenAI’s foundational principles, which were initially established in collaboration with Microsoft, have been disregarded.
Contrary to its original ethos as an anonymous open-source initiative, the lawsuit alleges that the new iteration of OpenAI has evolved into a closed-source entity effectively controlled by the world’s largest technology company.
Musk’s lawsuit claims that Altman and Brockman were obligated, under the founding agreement, to develop AI technologies “for the benefit of humanity” rather than for personal or corporate gain.
However, the introduction of the GPT-4 language model signifies, according to the suit, a significant departure from this mission, constituting a breach of the founding agreement.
Latest Development
New York Times Complaint Over Copyright Infringement
The New York Times has initiated legal action against OpenAI and its investor, a technology giant, on grounds of copyright infringement.
The lawsuit asserts that these entities utilized millions of articles from the newspaper without proper authorization to train their artificial intelligence (AI) models, including the widely recognized AI platforms ChatGPT and Copilot.
The New York Times contends that OpenAI and its AI models, fueled by large language models (LLMs), have produced output that mirrors Times content verbatim, closely summarizes it, and imitates its distinctive style.
The newspaper claims that using its work without permission to develop AI models is a blatant copyright infringement and seeks billions in damages.
Main Copyright Issues
OpenAI vs Open Artificial Intelligence
In a role reversal, OpenAI filed a lawsuit against Open Artificial Intelligence , Inc. on Aug. 4, 2023, in the Northern District of California, alleging trademark infringement and unfair competition for using the “Open AI” mark.
OpenAI claims this has caused “irreparable harm” by damaging its reputation and confusing consumers. They seek a permanent injunction, damages, and legal fees.
The resolution of this case holds broader implications for the technology sector, particularly concerning the use of generic terms in trademarks. In fact, “Artificial intelligence” is a descriptive term commonly employed by numerous tech companies.
Consequently, it remains uncertain whether OpenAI can successfully assert trademark rights in the term “Open AI,” considering its descriptive usage by other entities within the industry.
Older Legal Issues
