US Court Allows New York Times’ Copyright Lawsuit Against OpenAI & Microsoft to Proceed

US Court Allows New York Times’ Copyright Lawsuit Against OpenAI & Microsoft to Proceed

Landmark case raises questions over AI, fair use, and copyright laws; Tech giants face legal challenge over use of media content

AuthorPavitra ShettyMar 28, 2025, 10:02 AM

A federal judge has ruled that The New York Times (NYT) and other media organizations can proceed with their copyright lawsuit against OpenAI and Microsoft, alleging unauthorized use of their content to train artificial intelligence (AI) models. ​ 

 

Background of the Lawsuit

In December 2023, the NYT filed a lawsuit accusing OpenAI and its partner, Microsoft, of copyright infringement. The suit claims that millions of the NYT's copyrighted articles were used without permission to train AI chatbots like ChatGPT, resulting in outputs that sometimes replicate NYT content verbatim. 

 

Court's Recent Ruling

On March 26, 2025, U.S. District Judge Sidney Stein of the Southern District of New York dismissed some claims but allowed the primary copyright infringement allegations to move forward. Judge Stein indicated that a detailed opinion explaining the decision would be issued "expeditiously." ​ 

 

Statements from Involved Parties

  • NYT's Legal Team: Attorney Ian Crosby expressed appreciation for the court's careful consideration, emphasizing the intent to pursue claims against OpenAI and Microsoft for the alleged unauthorized use of millions of the NYT's works. ​ 

  • MediaNews Group and Tribune Publishing: Frank Pine, executive editor, stated that the dismissal of some claims does not undermine the core argument that the companies have violated copyright laws, causing fundamental damage to their business. ​ 

  • OpenAI: The company welcomed the dismissal of several claims and maintained that their AI models are built using publicly available data in a manner grounded in fair use, supporting innovation. ​ 

  • Microsoft: The company declined to comment on the ruling. 

 

Legal Implications and Industry Impact

This lawsuit underscores the complex intersection of AI development and copyright laws. The central issue revolves around whether using copyrighted material to train AI models constitutes fair use or copyright infringement. The outcome could set a significant precedent, influencing how AI companies source training data and how media organizations protect their content. ​ 

 

Conclusion

As the case progresses, it will be closely monitored by legal experts, media entities, and technology companies. The balance between fostering innovation in AI and upholding intellectual property rights remains a pivotal concern in this evolving legal landscape.

 

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