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Seattle Times and Newsday Sue OpenAI and Microsoft Over AI Training Practices

The joint lawsuit accuses the tech companies of bypassing paywalls, eroding digital advertising revenue, and generating false attributions.

By The Company Wire3 min read
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OpenAI — Seattle Times and Newsday Sue OpenAI and Microsoft Over AI Training Practices
OpenAI — Seattle Times and Newsday Sue OpenAI and Microsoft Over AI Training Practices. Photo: Engadget.

The Seattle Times and Newsday have initiated joint legal action against OpenAI and Microsoft, alleging that the technology companies infringed on their copyrights by utilizing publisher content to train generative artificial intelligence models without authorization, as first reported by Engadget.

Filed on Friday, the complaint characterizes the current trajectory of generative AI as "a snake eating its own tail." The news publishers argued in court documents that the technology risks undermining and ultimately destroying the underlying content creators and journalism upon which the systems depend for training.

According to the lawsuit, OpenAI and Microsoft engaged in systematic content extraction, allegedly "methodically scraping" news stories in a manner designed to bypass paywalls established by the outlets. The plaintiffs assert that this practice systematically appropriated their proprietary reporting.

The publishers contend that these practices directly harm their underlying business models. By providing users with AI-synthesized summaries and direct answers in place of original reporting, the tools reduce referral traffic to the news organizations' websites, diminishing critical digital advertising revenue.

Beyond revenue losses, the suit addresses accuracy and intellectual property management. The plaintiffs allege that the defendants' AI models generate hallucinations that incorrectly attribute false information to the publications. Furthermore, the complaint claims that the systems routinely strip out copyright management details attached to the original articles.

The joint action expands an ongoing series of copyright disputes between digital publishers and artificial intelligence developers. The legal precedent was set in 2023 when The New York Times filed a landmark suit against OpenAI and Microsoft over similar training practices. Earlier this year, CNN also launched copyright litigation against AI search startup Perplexity.

While several outlets have turned to the courts, others in the media industry have chosen commercial licensing arrangements. Companies including the Associated Press and Vox Media have inked agreements with OpenAI, granting the AI company explicit authorization to train its models on their archived material.

Sources

  1. Engadget

Company: OpenAI

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The Company Wire

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