U.S. News & World Report has become the latest publisher to take OpenAI to court, filing a lawsuit in the Southern District of New York that accuses the company of using its journalism without permission to train AI systems and produce outputs that compete with, or diminish the value of, its reporting. The case adds to a rapidly expanding wave of copyright disputes that is testing how far generative AI developers can go in using news content.

At the centre of the fight is a question that is now shaping the legal battle between media companies and AI firms: whether training models on large collections of copyrighted material qualifies as fair use, or whether it amounts to unauthorised copying that should require consent and payment. Publishers say AI tools can reproduce or summarise their work in ways that threaten readership, subscriptions and licensing revenue, while OpenAI and other developers are expected to lean on arguments about transformation and fair use.

The new suit lands as another major case against OpenAI moves forward. A federal judge has already allowed most of The New York Times’s copyright claims against OpenAI and Microsoft to proceed, according to CBS News, keeping alive a dispute that could ultimately reach a jury. The Times had argued in its federal complaint that its articles were used to train chatbots without permission, causing damage to its business and to the information ecosystem more broadly, while Forbes reported that the newspaper is seeking damages on a massive scale.

Other publishers are also pressing similar claims. Encyclopaedia Britannica and Merriam-Webster recently sued OpenAI as well, alleging that its products are cannibalising traffic by generating summaries of their content and that large volumes of material were scraped without authorisation, according to reports from Gizmodo and TechCrunch. For law firms, publishers and enterprise users alike, the spreading litigation is forcing closer scrutiny of data provenance, vendor promises and internal rules governing AI use.

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Source: Noah Wire Services