A New Class Action Lawsuit Adds to OpenAI's Growing Legal Troubles
<html> <figure class=„sc-1eow4w5-1 fuSEnv align–bleed js_marquee-assetfigure“ data-id=„f4488eef2586c48bdc4a2b2c296b2537“ data-recommend-id=„image:f4488eef2586c48bdc4a2b2c296b2537“ data-format=„jpg“ data-width=„3879“ data-height=„2181“ data-lightbox=„true“ data-recommended=„false“ data-hide=„false“ contenteditable=„false“ draggable=„false“><div class=„sc-1eow4w5-2 fDJNBs has-data img-wrapper c3“ contenteditable=„false“ data-link-reference=„“ data-link-target=„“ data-syndicationrights=„true“ data-imagerights=„getty“ data-hide=„false“ data-hidecredit=„false“><div class=„sc-1eow4w5-3 hGpdBg c2“><picture class=„sc-epkw7d-0 diKDHf“><source media=„(max-width: 37.31em)“ type=„image/jpeg“ /><source media=„(min-width: 37.37em)“ type=„image/jpeg“ /><img alt=„Sam Altman, CEO of OpenAI.“ data-chomp-id=„f4488eef2586c48bdc4a2b2c296b2537“ data-format=„jpg“ data-alt=„Sam Altman, CEO of OpenAI.“ data-anim-src=„“ src=„https://i.kinja-img.com/gawker-media/image/upload/c_fit,f_auto,g_center,q_60,w_645/f4488eef2586c48bdc4a2b2c296b2537.jpg“ referrerpolicy=„no-referrer“ /></picture></div><div class=„sc-1eow4w5-4 hOcXmo image-meta“><figcaption class=„sc-1ptbguh-0 kGTBpz caption“>Sam Altman, CEO of OpenAI.</figcaption><figcaption class=„sc-7s1ndr-0 ljxJEn has-caption“>Photo: Win McNamee (Getty Images)</figcaption></div></div></figure><div class=„sc-r43lxo-1 cwnrYD“><p class=„sc-77igqf-0 fnnahv“>A new class action <a class=„sc-1out364-0 dPMosf sc-145m8ut-0 jCErAQ js_link“ data-ga=„1}“ href=„https://clarksonlawfirm.com/wp-content/uploads/2023/06/0001.-2023.06.28-OpenAI-Complaint.pdf“ target=„_blank“ rel=„noopener noreferrer“>lawsuit</a> accuses ChatGPT creator OpenAI of criminally scraping data from all over the internet, then using the stolen data to create its popular automated products. The lawsuit, filed this week by the <a class=„sc-1out364-0 dPMosf sc-145m8ut-0 jCErAQ js_link“ data-ga=„1}“ href=„https://clarksonlawfirm.com/the-ai-arms-race-and-why-we-need-to-come-together-now/“ target=„_blank“ rel=„noopener noreferrer“>Clarkson Law Firm</a> in a Northern California court, is only the latest in a slew of legal challenges that strike at the very heart of the influential startup’s business model.</p><div class=„sc-1needdh-1 eZHmRR sc-1needdh-0 jLsF instream-native-video instream-permalink instream-native-video–mobile sc-1h0epat-0 jzEBNo“><div class=„sc-1h0epat-1 gAGQYW video-html5-header sc-235a11-0 iJiJEJ“>Watch</div><div class=„sc-1wkneyl-4 kDKXjm video-html5-playlist“ data-playlist=„193647,194160,193866“ data-current=„193647“><div class=„sc-1wkneyl-0 hAZDOz video-html5-loaded“><div class=„sc-1wkneyl-1 jShsAa video-html5-player sc-lhhce6-0 feVyfl video-html5 autoplay muted mobile“><div class=„sc-lhhce6-2 emBeiF video-top-bar sc-lhhce6-3 lpgZMc“>Netflix Passwords, 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data-ga=„kinjavideo-194160"“ href=„https://gizmodo.com/generating-video-via-text-future-tech-1850261346“><div class=„sc-14ojfpu-2 eMfXho“><div class=„sc-14ojfpu-0 htuZzx“>Generating Video Via Text? | Future Tech</div><div class=„sc-14ojfpu-1 gLhoEW“>March 24, 2023</div></div></a></div><div data-key=„193866“ class=„sc-14ojfpu-5 cyzjbU“><a class=„sc-1out364-0 dPMosf sc-14ojfpu-4 gUqiPd js_link“ data-ga=„kinjavideo-193866"“ href=„https://gizmodo.com/warning-microsoft-wants-chatgpt-to-control-robots-next-1850151223“><div class=„sc-14ojfpu-2 eMfXho“><div class=„sc-14ojfpu-0 htuZzx“>Warning! Microsoft Wants ChatGPT to Control Robots Next</div><div class=„sc-14ojfpu-1 gLhoEW“>February 23, 2023</div></div></a></div></div></div><div class=„sc-1h0epat-2 hnfufp js_close-sticky-mobile-video“></div><p class=„sc-77igqf-0 fnnahv“>Since it pivoted from a humble research organization to a for-profit business in 2019, OpenAI has been on a meteoric ascent to the very top of the tech industry. When it <a class=„sc-1out364-0 dPMosf sc-145m8ut-0 jCErAQ js_link“ data-ga=„:~:text=After%20you%20open%20an%20account,and%20ChatGPT%20will%20dutifully%20respond.",{"metric25":1}“ href=„https://gizmodo.com/chatgpt-how-to-use-openai-ai-elon-musk-1849855605#:~:text=After%20you%20open%20an%20account,and%20ChatGPT%20will%20dutifully%20respond.“>launched</a> ChatGPT last November, the company became a household name.</p><div class=„sc-17kx9cd-5 kDVAgq js_ad-mobile-dynamic js_ad-dynamic ad-mobile-dynamic sc-17kx9cd-4 bNalOf ad-unit ad-mobile“><div class=„sc-17kx9cd-0 fjNuCW“>Advertisement</div><div class=„bt-wrapper“></div><p class=„sc-77igqf-0 fnnahv“>But as OpenAI attempts to stand up its business and lay the groundwork for future expansion, the controversial nature of the technology that it’s selling may sabotage its own ambitions. Given the radicalness and newness of the AI industry, it only makes sense that legal and regulatory issues would develop. And if legal challenges like the one filed this week hold sway, they could undermine the very existence of OpenAI’s most popular products and, in turn, may threaten the nascent AI industry that revolves around them.</p><h3 class=„sc-1bwb26k-1 dezcon“ id=„h139949“>The Clarkson lawsuit’s allegations, explained</h3><p class=„sc-77igqf-0 fnnahv“>The central claim in the Clarkson lawsuit is that OpenAI’s entire business model is based on theft. The lawsuit specifically accuses the company of creating its products using “stolen private information, including personally identifiable information, from hundreds of millions of internet users, including children of all ages, without their informed consent or knowledge.”</p><div class=„sc-10gdv83-0 cQwRDL“><div class=„sc-17kx9cd-5 kDVAgq js_ad-mobile-dynamic js_ad-dynamic ad-mobile-dynamic sc-17kx9cd-4 bNalOf ad-unit ad-mobile“><div class=„sc-17kx9cd-0 fjNuCW“>Advertisement</div><div class=„bt-wrapper“></div><div class=„sc-17kx9cd-5 kDVAgq js_ad-mobile-dynamic js_ad-dynamic ad-mobile-dynamic sc-17kx9cd-4 bNalOf ad-unit ad-mobile“><div class=„sc-17kx9cd-0 fjNuCW“>Advertisement</div><div class=„bt-wrapper“></div></div><div class=„sc-v7tysz-0 dqKlmg connatix-main-container“><p class=„sc-77igqf-0 fnnahv“>It’s well known that OpenAI’s <a class=„sc-1out364-0 dPMosf sc-145m8ut-0 jCErAQ js_link“ data-ga=„1}“ href=„https://gizmodo.com/ai-bard-google-facebook-trained-on-breitbart-rt-1850352405“>large language models</a>—which animate platforms like <a class=„sc-1out364-0 dPMosf sc-145m8ut-0 jCErAQ js_link“ data-ga=„1}“ href=„https://gizmodo.com/chatgpt-openai-ai-contractors-15-dollars-per-hour-1850415474“>ChatGPT</a> and <a class=„sc-1out364-0 dPMosf sc-145m8ut-0 jCErAQ js_link“ data-ga=„1}“ href=„https://gizmodo.com/dall-e-art-generator-ai-openai-1849591740“>DALL-E</a>—are trained on massive amounts of data. Much of this data, the startup has openly admitted, was scraped from the open internet. By and large, <a class=„sc-1out364-0 dPMosf sc-145m8ut-0 jCErAQ js_link“ data-ga=„1}“ href=„https://gizmodo.com/linkedin-scraping-data-legal-court-case-1848811335“>most web scraping is legal</a>, though there are <a class=„sc-1out364-0 dPMosf sc-145m8ut-0 jCErAQ js_link“ data-ga=„1}“ href=„https://www.securityweek.com/web-scraping-it-legal-and-can-it-be-prevented/“ target=„_blank“ rel=„noopener noreferrer“>some wrinkles</a> to that basic formula. While OpenAI has claimed that everything it does is above board, it has also been <a class=„sc-1out364-0 dPMosf sc-145m8ut-0 jCErAQ js_link“ data-ga=„1}“ href=„https://www.fastcompany.com/90866190/critics-denounce-a-lack-of-transparency-around-gpt-4s-tech“ target=„_blank“ rel=„noopener noreferrer“>repeatedly criticized</a> for a lack of transparency regarding the sources of some of its data. According to this week’s lawsuit, the startup’s hoovering practices are blatantly illegal; specifically, the suit accuses the company of violating multiple platforms’ terms of service agreements while also running afoul of various state and federal regulations—including privacy laws.</p><blockquote data-type=„BlockQuote“ class=„sc-8hxd3p-0 eXwMsK“><p class=„sc-77igqf-0 fnnahv“>Despite established protocols for the purchase and use of personal information, Defendants took a different approach: theft. They systematically scraped 300 billion words from the internet, “books, articles, websites and posts – including personal information obtained without consent.” OpenAI did so in secret, and without registering as a data broker as it was required to do under applicable law</p></blockquote><div class=„ars-fallback sc-17kx9cd-5 kDVAgq js_ad-mobile-dynamic js_ad-dynamic ad-mobile-dynamic sc-17kx9cd-4 bNalOf ad-unit ad-mobile c1“><div class=„sc-17kx9cd-0 fjNuCW“>Advertisement</div><div class=„bt-wrapper“></div><div class=„apscustom c5“ id=„93b7dd52-a8ce-11ed-afa1-0242ac120002:1“></div><p class=„sc-77igqf-0 fnnahv“>The lawsuit also highlights the fact that, after OpenAI freely exploited everybody’s web content, it then proceeded to use that data to build commercial products that it is now attempting to sell back to the public for exorbitant sums of money:</p><blockquote data-type=„BlockQuote“ class=„sc-8hxd3p-0 eXwMsK“><p class=„sc-77igqf-0 fnnahv“>Without this unprecedented theft of private and copyrighted information belonging to real people, communicated to unique communities, for specific purposes, targeting specific audiences, the [OpenAI] Products would not be the multi-billion-dollar business they are today.</p></blockquote><div class=„sc-17kx9cd-5 kDVAgq js_ad-mobile-dynamic js_ad-dynamic ad-mobile-dynamic sc-17kx9cd-4 bNalOf ad-unit ad-mobile“><div class=„sc-17kx9cd-0 fjNuCW“>Advertisement</div><div class=„bt-wrapper“></div><p class=„sc-77igqf-0 fnnahv“>Whether the U.S. justice system ends up agreeing with the lawsuit’s definition of theft is yet to be determined. Gizmodo reached out to OpenAI for comment on the new lawsuit but did not hear back.</p><h3 class=„sc-1bwb26k-1 dezcon“ id=„h139950“>OpenAI’s legal troubles are piling up</h3><p class=„sc-77igqf-0 fnnahv“>The Clarkson lawsuit isn’t the only one that OpenAI is currently dealing with. In fact, OpenAI has been subjected to an ever growing list of legal attacks, many of which make similar arguments.</p><div class=„sc-17kx9cd-5 kDVAgq js_ad-mobile-dynamic js_ad-dynamic ad-mobile-dynamic sc-17kx9cd-4 bNalOf ad-unit ad-mobile“><div class=„sc-17kx9cd-0 fjNuCW“>Advertisement</div><div class=„bt-wrapper“></div><p class=„sc-77igqf-0 fnnahv“>Just this week, <a class=„sc-1out364-0 dPMosf sc-145m8ut-0 jCErAQ js_link“ data-ga=„1}“ href=„https://torrentfreak.com/authors-accuse-openai-of-using-pirate-sites-to-train-chatgpt-230630/“ target=„_blank“ rel=„noopener noreferrer“>another lawsuit</a> was filed in California on behalf of <a class=„sc-1out364-0 dPMosf sc-145m8ut-0 jCErAQ js_link“ data-ga=„1}“ href=„https://www.hollywoodreporter.com/business/business-news/authors-sue-openai-novels-1235526462/“ target=„_blank“ rel=„noopener noreferrer“>numerous authors</a> who say their copyrighted works were scraped by OpenAI in its effort to gobble up data to train its algorithms. The suit, again, basically accuses the company of stealing data to fuel its business—and says it created its products by “harvesting mass quantities” of copyrighted works without “consent, without credit, and without compensation.” It goes on to characterize platforms like ChatGPT as being “infringing derivative works”—essentially implying that they wouldn’t exist without the copyrighted material—“made without Plaintiffs’ permission and in violation of their exclusive rights under the Copyright Act.”</p><p class=„sc-77igqf-0 fnnahv“>At the same time, both the Clarkson suit and the authors’ suit bare some resemblance to <em>another</em> lawsuit that was <a class=„sc-1out364-0 dPMosf sc-145m8ut-0 jCErAQ js_link“ data-ga=„1}“ href=„https://githubcopilotlitigation.com/“ target=„_blank“ rel=„noopener noreferrer“>was filed</a> shortly after ChatGPT’s release last November. This one, filed as a class action lawsuit by the offices of Joseph Savari in San Francisco, accuses OpenAI and <a class=„sc-1out364-0 dPMosf sc-145m8ut-0 jCErAQ js_link“ data-ga=„1}“ href=„https://gizmodo.com/microsoft-chatgpt-openai-partnership-rocky-start-1850536201“>its funder and partner Microsoft</a> of having ripped off coders in an effort to train GitHub Copilot—an AI driven virtual assistant. The lawsuit specifically <a class=„sc-1out364-0 dPMosf sc-145m8ut-0 jCErAQ js_link“ data-ga=„1}“ href=„https://gizmodo.com/ai-microsoft-dall-e-1849816871“>accuses</a> the companies of failing to adhere to the open source licensing agreements that undergird much of the development world, claiming that they instead lifted and ingested the code without attribution, while also failing to adhere to other legal requirements. In May, a federal judge in California <a class=„sc-1out364-0 dPMosf sc-145m8ut-0 jCErAQ js_link“ data-ga=„1}“ href=„https://www.theregister.com/2023/05/12/github_microsoft_openai_copilot/“ target=„_blank“ rel=„noopener noreferrer“>declined OpenAI’s motion</a> to have the case dismissed, allowing the legal challenge to move forward.</p><div class=„sc-17kx9cd-5 kDVAgq js_ad-mobile-dynamic js_ad-dynamic ad-mobile-dynamic sc-17kx9cd-4 bNalOf ad-unit ad-mobile“><div class=„sc-17kx9cd-0 fjNuCW“>Advertisement</div><div class=„bt-wrapper“></div><p class=„sc-77igqf-0 fnnahv“>In Europe, meanwhile, OpenAI has faced similar <a class=„sc-1out364-0 dPMosf sc-145m8ut-0 jCErAQ js_link“ data-ga=„1}“ href=„https://www.wired.com/story/italy-ban-chatgpt-privacy-gdpr/“ target=„_blank“ rel=„noopener noreferrer“>legal inquiries</a> from government regulators over its lack of privacy protections for users’ data.</p><p class=„sc-77igqf-0 fnnahv“>All of this legal turmoil takes place against the backdrop of OpenAI’s <a class=„sc-1out364-0 dPMosf sc-145m8ut-0 jCErAQ js_link“ data-ga=„1}“ href=„https://www.yahoo.com/now/chatgpt-too-popular-own-good-213000757.html“ target=„_blank“ rel=„noopener noreferrer“>meteoric ascent</a> to Silicon Valley stardom—a precarious new position that the company is clearly fighting to maintain. As the company fends off legal assaults, OpenAI’s CEO, Sam Altman, has been attempting to influence how new laws will be built around his axis-shifting technology. Indeed, Altman has been <a class=„sc-1out364-0 dPMosf sc-145m8ut-0 jCErAQ js_link“ data-ga=„1}“ href=„https://gizmodo.com/chatgpt-login-plus-openai-sam-altman-ai-laws-tokyo-1850529436“>courting governments all over the globe</a> in an effort to lay the groundwork for a friendly regulatory environment. The company is clearly positioned to be the de facto leader in the AI industry—if it can fend off the ongoing challenges to its very existence, that is.</p></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div> </html>
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