Microsoft has submitted a motion to dismiss specific portions of a lawsuit initiated by The New York Times, alleging copyright infringement in the training of AI technologies, including the collaborative creation of the ChatGPT chatbot with OpenAI.

The Times contends that Microsoft and OpenAI utilized their articles without authorization for AI training, negatively impacting the news articles market. Microsoft's counterargument, filed in a US District Court, asserts that the large language models (LLMs) propelling chatbots do not supplant the news market. In analogy to legal conflicts involving VCRs in the 1970s, Microsoft claims that LLMs adhere to copyright laws akin to VCRs.

The company disputes The Times' assertion of tangible harm, stating the absence of concrete evidence showcasing revenue diversion from its subsidiary, Wirecutter. While acknowledging the replication of The Times' works in collaboration with OpenAI, Microsoft defends this as "fair use," highlighting the transformative aspect of generating innovative content from copyrighted material. This legal clash signifies The Times as the inaugural major American media entity to sue Microsoft and OpenAI regarding copyright issues related to AI-generated content.

Why does it matter?

The outcome could set a precedent for how large language models, like those driving chatbots, use copyrighted material for training. Additionally, it highlights the evolving challenges and legal complexities in the intersection of media, technology, and intellectual property rights, impacting how companies develop and train AI models with publicly available content.