Seattle Times and Newsday Sue OpenAI and Microsoft Over Unauthorized AI Training on Their Journalism

Reviewed byNidhi Govil

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The Seattle Times and Newsday filed a copyright lawsuit against OpenAI and Microsoft, alleging the tech giants scraped hundreds of thousands of articles—bypassing paywalls—to train AI models without permission. The suit seeks financial damages and destruction of training datasets built with their content.

Seattle Times Joins Growing Wave of Copyright Lawsuits Against Tech Giants

The Seattle Times and Newsday filed a copyright lawsuit on Friday against OpenAI and Microsoft in the U.S. District Court for the Southern District of New York

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. The news publishers allege that both companies scraped hundreds of thousands of their articles—including content behind paywalls—to train AI models without permission or compensation

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. This legal action marks a significant escalation in tensions between journalism and AI training practices, particularly because the Seattle Times is suing two of its own funders.

Source: Digit

Source: Digit

What Makes This Copyright Infringement Case Unique

The lawsuit carries unusual weight given the financial relationships involved. Microsoft Philanthropies underwrites some Seattle Times journalism projects, and in 2024, Microsoft and OpenAI jointly funded a $10 million Lenfest Institute AI fellowship that included both the Seattle Times and Newsday among its inaugural participating newsrooms

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. Despite these connections, Seattle Times President and CEO Alan Fisco stated: "This was not an easy decision. However, we feel strongly that we must defend our content—which we spend millions of dollars a year to produce—from being used without our consent or compensation"

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. The suit alleges that OpenAI and Microsoft incorporated articles into training datasets used to develop products including ChatGPT, Microsoft Copilot, and Bing AI features

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How AI Models Allegedly Reproduce Protected Journalism Without Permission

The complaint includes damning examples of ChatGPT reproducing Seattle Times and Newsday journalism nearly word for word. One instance shows an 88-word verbatim stretch from The Seattle Times' Pulitzer-winning coverage of the Boeing 737 MAX crashes, generated when a user prompted the chatbot with just the article's headline and web address

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. The news publishers argue that large language models can reproduce passages from their reporting, closely paraphrase articles, and provide users with answers that reduce the need to visit their websites or buy subscriptions

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. The Seattle Times specifically argued that its business was harmed through substantially lower click-through rates to its articles when traditional search links were replaced with generative AI summaries in search results, directly impacting web traffic

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Source: GeekWire

Source: GeekWire

The Fair Use Defense and Transformative Technology Arguments

OpenAI and Microsoft have vigorously defended themselves by invoking fair use protections under copyright law. Microsoft argued that existing copyright law "does not permit rights holders to block transformative technologies," such as Microsoft Copilot

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. OpenAI stated that "these technologies put the world's facts within reach of anyone who asks, in whatever form is most useful to them. That is progress, and copyright law does not stand in its way"

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. An OpenAI spokesperson reiterated that its models are trained on publicly available data and grounded in fair use

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. The tech companies claim that AI training sufficiently transforms copyrighted works into entirely new expressions, though The New York Times and other media organizations dispute this, arguing that the substitution effect proves insufficient transformation

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Justice Department Weighs In on National Interest and AI Development

The Justice Department filed a brief this week siding with Microsoft and OpenAI in The New York Times case, arguing that a ruling for the publishers would stifle American AI development

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. The Justice Department stated that AI's development is a matter of national interest, and that the "creative possibilities" and potential benefits of AI models "far outweigh any competitive harm" that could come from training datasets built on content from publishers

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. This position suggests the government views transformative use in AI training as essential to maintaining technological competitiveness, potentially setting a legal precedent that could reshape intellectual property rights in the AI era.

What Publishers Are Demanding and Industry-Wide Implications

The Seattle Times and Newsday seek financial damages and the destruction of all training datasets and AI models built with their content

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. Friday marked the deadline for companies to file motions for summary judgment in The New York Times case, with Judge Sidney H. Stein expected to rule in the coming weeks

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. The lawsuit joins a growing list of copyright complaints against OpenAI and Microsoft, including cases from The New York Times, New York Daily News, Ziff Davis, and the Center for Investigative Reporting, all consolidated before Judge Stein

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. Meanwhile, OpenAI has struck licensing deals with more than a dozen outlets, including The Associated Press, News Corp, and Axel Springer, with publicly disclosed terms of three deals topping $300 million

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Source: Seattle Times

Source: Seattle Times

Why This Matters for the Future of Journalism and AI

This copyright lawsuit represents a critical inflection point for both industries. "Like a snake eating its own tail, GenAI that is trained on painstakingly researched, expensive-to-produce content threatens to destroy the very news organizations by competing directly with them through AI-generated substitutive content," the suit states. "If Defendants are allowed to succeed, independent journalism of the kind Plaintiffs produce will struggle to survive"

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. The New York Times argued in its filing that "the future not just of journalism but of responsible AI, too, depends on preserving incentives for humans to produce the creative works on which a healthy society depends"

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. Watch for Judge Stein's ruling on summary judgment motions, which could establish whether news publishers can block AI companies from using their journalism to train AI models, potentially forcing widespread licensing agreements or fundamentally reshaping how AI systems access and use copyrighted material for training purposes.

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