New York Times (NYT) sues Microsoft and OpenAI for Copyright Infringement - Our Thoughts

New York Times (NYT) sues Microsoft and OpenAI for Copyright Infringement - Our Thoughts

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December 27, 2023

In one the first and likely the largest lawsuit of it's kind, New York Times filed a lawsuit against OpenAI and Microsoft for CopyRight infringement. Here is the original lawsuit document and here is our summary we created.

This PDF file contains the complaint filed by The New York Times Company against Microsoft Corporation and OpenAI Inc. for allegedly infringing on the vital role of independent journalism in our democracy. The Times claims that their deeply reported, expert, and independent journalism is being threatened by the actions of the defendants.

What specific actions are The New York Times Company alleging that Microsoft Corporation and OpenAI Inc. have taken to threaten independent journalism?
The New York Times Company alleges that Microsoft Corporation and OpenAI Inc. have engaged in the unlawful use of The Times's work to create artificial intelligence products that compete with it. Specifically, the complaint states that the defendants' "generative artificial intelligence (GenAI) tools rely on large-language models (LLMs) that were built by copying and using millions of The Times's copyrighted news articles, in-depth investigations, opinion pieces, reviews, how-to guides, and more" 2. The defendants are accused of using The Times's content without permission or payment to develop their models and tools, which undermines The Times's ability to provide its vital service of supplying trustworthy information, news analysis, and commentary 2.Furthermore, the complaint asserts that Microsoft's Bing search index copies and categorizes The Times's online content to generate responses containing verbatim excerpts and detailed summaries of Times articles, which are significantly longer and more detailed than those returned by traditional search engines 3. This unauthorized use of The Times's content is claimed to undermine and damage the relationship between The Times and its readers, as well as deprive The Times of subscription, licensing, advertising, and affiliate revenue 3.In summary, The New York Times Company alleges that Microsoft Corporation and OpenAI Inc. have engaged in the unauthorized use of The Times's content to develop AI products, which threatens the ability of The Times to provide its valuable journalistic service to the public 2.
How does The Times argue that their work is made possible through the efforts of a large and expensive organization?
The New York Times Company argues that its work is made possible through the efforts of a large and expensive organization by highlighting the significant resources and investment required to produce high-quality journalism. The complaint emphasizes that it takes enormous resources to publish, on average, more than 250 original articles every day, and many of these articles take months, or even longer, to report 12, 12. The output of The Times is attributed to approximately 5,800 full-time equivalent employees, with some 2,600 directly involved in The Times's journalism operations 12, 12. Additionally, the most vital news reporting for society is described as being the most resource-intensive, often requiring the deployment of teams of journalists at great cost to report on the ground around the world, providing best-in-class security and support, and filing lawsuits against government entities to bring information to light 12, 12.Furthermore, the complaint underscores the financial aspect of sustaining journalism, stating that subscription, advertising, licensing, and affiliate revenue make the reporting possible 12, 12. It is noted that The Times reinvented its business model to incorporate digital subscriptions, launching its metered paywall in 2011, in response to the shift from print news to digital products 12, 12. This transformation was described as "a bet that readers will pay for news they are accustomed to getting free" 12.In summary, The New York Times Company argues that its work is made possible through the efforts of a large and expensive organization by highlighting the substantial resources, workforce, and financial investment required to produce high-quality journalism and sustain its operations 12, 12.
What are the potential implications for the future of independent journalism if The Times is successful in their complaint against the defendants?
If The New York Times Company is successful in their complaint against the defendants, it could have significant implications for the future of independent journalism. The potential implications include:1. Protection of Intellectual Property: A successful outcome for The Times could reinforce the protection of intellectual property rights for news organizations. This could set a precedent for safeguarding the rights of media companies and journalists, ensuring fair compensation for the use of their content.2. Financial Sustainability: Success in the complaint could help secure the financial sustainability of independent journalism. By defending its exclusive rights of reproduction, adaptation, publication, performance, and display under copyright law, The Times could potentially ensure that its ability to monetize its content is preserved, thereby maintaining its revenue streams and funding for high-quality journalism.3. Preservation of Investigative Reporting: The outcome could impact the ability of news organizations to continue producing in-depth investigative reporting. With the potential to maintain or increase revenue, news organizations may have the resources to dedicate time and effort to important, in-depth stories that serve the public interest.4. Future of Journalism: The success of The Times in the complaint could contribute to shaping the future landscape of journalism. It may reinforce the importance of independent, high-quality journalism and its role in providing trustworthy information to the public, potentially influencing the practices of other organizations in the media industry.In summary, a successful outcome for The New York Times Company in their complaint against the defendants could have far-reaching implications for the protection of intellectual property, the financial sustainability of independent journalism, the preservation of investigative reporting, and the future of journalism as a whole.
How does The New York Times Company describe the impact of the defendants' actions on its reputation and economic loss?
The New York Times Company describes the impact of the defendants' actions on its reputation and economic loss by asserting that the unauthorized use of its content has led to significant harm. The complaint alleges that the defendants' actions have damaged The Times's reputation for accuracy, originality, and quality, which has resulted in economic loss 67. Specifically, the unauthorized use of The Times's trademarks on lower quality and inaccurate writing is claimed to have diluted the quality of its trademarks, leading to tarnishment in violation of relevant statutes 67, 67.Furthermore, the complaint states that the defendants have greatly benefited from their wrongful conduct, reaping substantial savings by using New York Times content to create their large-language models (LLMs) without incurring costs 55. The Times emphasizes that its journalism is the work of thousands of journalists, and the defendants' actions have effectively avoided the billions of dollars invested in creating that work by taking it without permission or compensation 56, 55.In summary, The New York Times Company describes the impact of the defendants' actions on its reputation as damaging, leading to economic loss and dilution of the quality of its trademarks. The unauthorized use of its content is portrayed as causing harm to The Times's standing and financial interests.
What specific trademarks does The Times claim ownership of, and how are they being allegedly used by the defendants?
The New York Times Company claims ownership of several federally registered trademarks, including "The New York Times," "nytimes," and "nytimes.com" 67. The complaint alleges that the defendants have engaged in the unauthorized use of The Times's trademarks in outputs generated by their GPT-based products 67. Specifically, the defendants' GenAI products are claimed to have produced inaccurate content that is falsely attributed to The Times, which dilutes the quality of its trademarks by tarnishment in violation of 15 U.S.C § 1125(c) 67.The complaint further asserts that the defendants are aware that their GPT-based products produce inaccurate content that is falsely attributed to The Times, yet they continue to profit commercially from creating and attributing inaccurate content to The Times 67. As such, the defendants are accused of intentionally violating 15 U.S.C § 1125(c) by using The Times's trademarks on lower quality and inaccurate writing without permission or compensation 59, 67.In summary, The New York Times Company claims ownership of several federally registered trademarks, including "The New York Times," "nytimes," and "nytimes.com," which are allegedly being used by the defendants in outputs generated by their GPT-based products. The unauthorized use of The Times's trademarks is claimed to have diluted their quality by tarnishment, leading to violations of relevant statutes.


In what ways does The Times argue that the defendants' actions have diluted the quality of its trademarks and violated relevant statutes?
The New York Times Company argues that the defendants' actions have diluted the quality of its trademarks by tarnishment, which is a violation of 15 U.S.C § 1125(c) 66, 67. The complaint alleges that the defendants have engaged in the unauthorized use of The Times's trademarks in outputs generated by their GPT-based products, which produce inaccurate content that is falsely attributed to The Times 67. This use of The Times's trademarks on lower quality and inaccurate writing is claimed to have damaged the reputation of The Times for accuracy, originality, and quality, leading to economic loss 67.The complaint further asserts that the defendants are aware that their GPT-based products produce inaccurate content that is falsely attributed to The Times, yet they continue to profit commercially from creating and attributing inaccurate content to The Times 67. As such, the defendants are accused of intentionally violating 15 U.S.C § 1125(c) by using The Times's trademarks without permission or compensation 66, 67.In summary, The New York Times Company argues that the defendants' actions have diluted the quality of its trademarks by tarnishment, which has damaged its reputation for accuracy, originality, and quality, leading to economic loss. The unauthorized use of The Times's trademarks is claimed to have violated relevant statutes, as the defendants are accused of intentionally using them on lower quality and inaccurate writing without permission or compensation.
What measures has The Times taken to protect its intellectual property, and how does it claim that the defendants have refused to recognize this protection?
The New York Times Company has taken several measures to protect its intellectual property, including registering its copyrights and trademarks 59, 67, 2. The complaint alleges that The Times has implemented a paywall and requires a license for entities that wish to use its content for commercial purposes 59. These licenses place strict requirements on what content is being licensed and for what purposes it may be used, generating millions of dollars in revenue for The Times per year 59.Despite these measures, the complaint asserts that the defendants have refused to recognize The Times's protection of its intellectual property 67. The defendants are accused of engaging in widescale copying from many sources, including The Times, and giving Times content particular emphasis when building their LLMs 56. The complaint alleges that the defendants have used almost a century's worth of copyrighted content from The Times without paying fair compensation, which represents a significant harm to The Times caused by the defendants 59.In summary, The New York Times Company has taken several measures to protect its intellectual property, including registering its copyrights and trademarks and implementing a paywall and licensing requirements. However, the defendants are accused of refusing to recognize The Times's protection of its intellectual property by engaging in widescale copying from many sources, including The Times, without paying fair compensation.
How does The Times describe the threat posed by the defendants' GenAI products to high-quality journalism and the public interest?
The New York Times Company describes the threat posed by the defendants' GenAI products to high-quality journalism and the public interest as significant 2. The complaint alleges that the defendants' actions threaten The Times's ability to provide high-quality journalism in the public interest by creating artificial intelligence products that compete with it without permission or payment 59, 2.The complaint further asserts that The Times's journalism provides a service that has grown even more valuable to the public by supplying trustworthy information, news analysis, and commentary within a damaged information ecosystem that is awash in unreliable content 2. The unauthorized use of The Times's work to create artificial intelligence products that compete with it is claimed to threaten The Times's ability to provide that service, as it reduces the revenue available to fund world-class journalism in the public interest 14.In summary, The New York Times Company describes the threat posed by the defendants' GenAI products to high-quality journalism and the public interest as significant. The unauthorized use of The Times's work to create artificial intelligence products that compete with it is claimed to threaten The Times's ability to provide trustworthy information, news analysis, and commentary, reducing the revenue available to fund world-class journalism in the public interest.

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