DOJ Backs OpenAI in Fair Use Dispute

The US Department of Justice has sided with OpenAI in its copyright dispute with The New York Times, supporting the argument that training AI models on copyrighted works generally qualifies as fair use under US copyright law.

Why it matters:

• The position could have significant implications for the growing number of copyright lawsuits facing AI companies, including AI music platforms such as Suno and Udio, which are being sued by publishers, record labels and artists.

The DOJ’s argument:

• The New York Times sued OpenAI and Microsoft in 2023, alleging the unauthorized use of millions of its articles to train AI systems including ChatGPT.

• In court papers filed this week, the DOJ backed OpenAI’s argument that training large language models (LLMs) on vast bodies of written material is an “extraordinarily transformative” use of copyrighted content.

• It added that the “creative possibilities and public benefits” of AI training “far outweigh any competitive harm,” and warned that restricting AI development based on what it considers an incorrect interpretation of fair use would hinder US technological leadership.

Worth noting:

• The DOJ’s filing does not determine the outcome of the case, but it adds significant weight to OpenAI’s fair-use defense as courts continue to determine how copyright law applies to generative AI.