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Judge Allows New York Times Copyright Lawsuit Against OpenAI To Proceed

Published March 27, 2025

A federal judge has ruled against OpenAI, allowing a copyright infringement lawsuit filed by The New York Times to move forward. This decision is a significant development in a highly monitored case that will examine the extent of what artificial intelligence (AI) companies can use to train their language models, and the methods they can employ.

In his ruling, Judge Sidney H. Stein of the U.S. District Court for the Southern District of New York stated, “The Court hereby denies OpenAI’s motions to dismiss the direct infringement claims regarding actions that took place over three years before the lawsuits were initiated; the motions pertaining to contributory copyright infringement claims; and the motions to dismiss the state and federal trademark dilution claims from the Daily News action.”

The lawsuit was filed in the previous year, with the recent decision coming after oral arguments in January. Although Judge Stein has not yet provided a full opinion, he has indicated that he will issue his reasoning soon.

Case Developments

Several other claims were dismissed, effectively narrowing the lawsuit against OpenAI, and its partner and investor, Microsoft. The NYT action also includes claims from Daily News LP and The Center for Investigative Reporting.

As advancements in AI technology continue rapidly, companies are in urgent need of large volumes of content for the development of their models. Companies like OpenAI and Google have suggested that existing copyright protections are overly restrictive and could stifle the growth of U.S. AI technologies, thereby allowing international competitors, like those from China, to gain an advantage in this pivotal technological arena.

A number of concerned creative professionals from Hollywood have expressed their worries by sending a letter to the White House, cautioning about potential threats to the entertainment industry if copyright laws are not strictly enforced.

While tech companies acknowledge that content creators should be compensated, there is still uncertainty regarding how much compensation should be offered and what structure should be adopted.

The NYT argues that adequate legal frameworks already exist under current copyright laws.

Previously, OpenAI CEO Sam Altman engaged in a discussion with The New York Times’ Andrew Ross Sorkin concerning the lawsuit during a conference. Altman commented that “We need to find new economic models where creators will have new revenue streams … That said, the New York Times is on the wrong side of this suit.”

Sorkin responded, “We will discuss and debate this, in court,” suggesting that this legal confrontation is far from over.

lawsuit, copyright, AI