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Federal judge dismisses most of lawsuit against OpenAI over copyright

Federal judge dismisses most of lawsuit against OpenAI over use of copyrighted books.

In a recent legal battle, OpenAI, a leading AI research institute, has scored a significant victory. A federal judge has dismissed a major portion of a lawsuit filed against the company by prominent authors, including Sarah Silverman and Ta-Nehisi Coates. The lawsuit pertained to the alleged use of copyrighted books by OpenAI to train its generative artificial intelligence chatbot.

U.S. District Judge Araceli Martinez-Olguin, in an order issued on February 12, made a significant ruling by refusing to allow claims for vicarious copyright infringement, negligence, and unjust enrichment to proceed against OpenAI. The judge rejected the authors' claim that every answer generated by OpenAI's chatbot, ChatGPT, was an infringing work facilitated by information extracted from copyrighted material. The court found that the authors failed to provide evidence of any outputs that were substantially similar to their own books.

However, the authors have been given the opportunity to amend their claims and refile the lawsuit. Notably, OpenAI did not move to dismiss a claim for direct copyright infringement, leaving that aspect of the lawsuit intact.

This ruling aligns with previous findings from other judges overseeing similar cases, expressing skepticism about the ability of creators to substantiate their claims without evidence of the AI tools generating substantially similar answers to the copyrighted works in question. The outcomes of these legal battles could have significant implications for AI firms and their use of copyrighted material for training purposes. Some lawsuits even seek court orders that would require companies like OpenAI to destroy their AI systems.

The central issue in the lawsuits revolves around the concept of substantial similarity. Authors argue that they do not need to prove substantial similarity since they contend that OpenAI directly copied their books to train its AI system. However, the recent ruling by Judge Araceli Martinez-Olguin supports OpenAI's position, stating that there must be a demonstration of substantial similarity between the chatbot's outputs and the material allegedly used for training purposes.

The court also dismissed claims of vicarious copyright infringement and violation of the Digital Millennium Copyright Act for the removal of certain information from the copyrighted books during the training process. The judge reasoned that there was insufficient evidence to support these allegations.

Additionally, the claims for negligence and unjust enrichment were also dismissed. The court found that OpenAI had no duty to safeguard the authors' works and that the lawsuit failed to prove that the company benefited from any fraudulent practices.

However, OpenAI will still have to face a claim for unfair competition, as the court determined that using copyrighted material without permission or compensation may constitute an unfair business practice. It is worth noting that this claim may be preempted by the Copyright Act, although OpenAI did not raise this defense.

This ruling has broader implications, particularly for the use of copyrighted material in training AI systems. It raises questions about whether AI firms will be required to obtain licenses for the materials they use or potentially face the destruction of their AI systems. The ongoing legal battles are closely watched by industry experts and could significantly shape the future landscape of AI technology.

In a separate case involving AI art generators, another federal judge ruled that the companies behind these systems cannot rely on a First Amendment defense to dismiss claims related to chilling free speech. These legal battles between creators and AI companies may redefine the boundaries of intellectual property rights in the digital age.

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