Canadian Media Outlets Initiate Landmark Legal Action Against OpenAI

In a significant legal move, major Canadian news outlets, including the Toronto Star and CBC, are suing OpenAI for allegedly using their content without permission to train ChatGPT. The lawsuit, characterized as a first in Canada, demands damages and an injunction against future use of their articles.

A coalition of Canada’s leading news organizations, including the Toronto Star, Metroland Media, Postmedia, The Globe and Mail, The Canadian Press, and CBC, has launched a historic lawsuit against OpenAI, the parent company of the AI chatbot, ChatGPT. This legal action is focused on allegations of unlawful use of news articles for the training of OpenAI's software, marking what is reported as the first case of its kind in Canada.

In a joint statement, the media organizations declared, “Journalism is in the public interest. OpenAI using other companies’ journalism for their own commercial gain is not. It’s illegal.” These organizations assert that OpenAI’s model uses their content without proper authorization or adherence to copyright protections.

OpenAI, on the other hand, maintains that its models are based on publicly available information and operate under fair use and relevant international copyright guidelines. In remarks to the BBC, the company emphasized their collaboration with news publishers, highlighting provisions for displaying and linking to original content and mechanisms available for publishers to opt-out of having their materials used.

Within the context of their 84-page legal filing, the coalition accused OpenAI of sidestepping copyright laws and online terms designed to protect original content, such as barriers like paywalls. The companies assert that OpenAI routinely infringes upon copyrights by extracting substantial amounts of content from Canadian media to enhance AI products like ChatGPT.

The lawsuit seeks punitive damages of C$20,000 ($14,300; £11,000) for every article they claim was exploited, potentially amounting to billions in total damages. Additionally, the group is demanding that OpenAI share profits generated from using their content and is requesting a court injunction that would restrict the company from utilizing their articles in the future.

This action is reminiscent of a similar lawsuit in the United States initiated by prominent publishers including the New York Times last year. Legal representatives for the Times have alleged that OpenAI has taken measures to erase critical evidence relevant to their case. A separate claim from the Authors Guild and notable writers like John Grisham has also been filed on grounds of copyright infringement.

As of earlier this week, the Wall Street Journal reported that OpenAI is valued at approximately C$219 billion following a recent fundraising round.