Federal judge rules against OpenAI’s request to continue data deletion in ongoing copyright lawsuit.

A Manhattan federal judge has reaffirmed a previous ruling that requires OpenAI to retain logs and data that were initially set for deletion. This decision comes amid ongoing legal challenges from several prominent news organizations, including the New York Daily News, which accuse the technology giant of concealing potential evidence of copyright infringement.

On Thursday, the court dismissed OpenAI’s appeal against an earlier order designed to ensure the preservation of data utilized to train its various artificial intelligence systems. This data includes logs that the plaintiffs claim may reveal extensive violations of copyright, specifically through the use of copyrighted materials created by the news organizations without proper consent or financial compensation.

OpenAI maintains that its objection to retaining data is rooted in a commitment to user privacy. However, the legal representatives for the plaintiffs have characterized this stance as a misdirection intended to deflect attention from the core issues of the lawsuit. They assert that the demands for data do not involve any personally identifiable information and can be fulfilled in an anonymous manner. The plaintiffs have emphasized their desire to protect user privacy while pursuing accountability for potential copyright breaches.

At the heart of the plaintiffs’ claim is the assertion that OpenAI’s widely used ChatGPT platform has been built on a foundation of millions of copyrighted works from various media entities. They argue that this constitutes a massive infringement of copyright rights, as content was allegedly utilized without permission or compensation.

OpenAI is valued at approximately 0 billion, significantly bolstered by the success of ChatGPT, which was launched in 2022. However, critics argue that OpenAI’s approach to sourcing content has been overly simplistic, leading to accusations of “theft” from newspapers, magazines, and authors.

In its defense, OpenAI has invoked the doctrine of “fair use,” arguing that their use of copyrighted material falls within permissible legal bounds since it is intended for purposes such as criticism, commentary, and research. Nonetheless, legal experts for the news organizations contend that the fair use doctrine is applicable only if the new work transforms the original material into something new, which does not directly compete in the same market.

The court has dismissed OpenAI’s argument that the news organizations have failed to prove any instances where ChatGPT or its API products are being used as substitutes for paid news consumption. The legal battle began when The New York Times filed a lawsuit in December 2023, followed by the Daily News and other affiliated publications in April 2024.

Among the other plaintiffs are prominent publications such as The Mercury News, The Denver Post, The Orange County Register, and several outlets operated by Tribune Publishing. The outcome of this case could have significant implications for the intersection of artificial intelligence and copyright law.

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