A new class action lawsuit has been filed against OpenAI Inc. and Microsoft Corp. for alleged mass copyright infringement, as authors Catherine Denial, Ian McDowell, and Steven Schwartz claim their works were used without permission in AI training. The lawsuit, lodged in the US District Court for the Northern District of California, identifies three specific nonfiction books as infringed. It adds to the growing number of legal challenges against AI companies concerning the use of copyrighted materials to train large language models. Previous cases had mixed results, with some courts recognizing AI training as transformative fair use under specific conditions. The latest suit accuses OpenAI of building AI models on “stolen IP” sourced from “shadow libraries,” which raises significant questions about copyright and competitive practices in the industry. Microsoft is implicated for allegedly integrating these unlawfully trained models into its products, stifling market competition. The case is documented under Denial v. OpenAI Inc.
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