Yazılar

OpenAI Faces Legal Battle in India Over Jurisdiction in Copyright Case

/in /tarafından

OpenAI is facing a legal challenge in India as it argues that local courts lack jurisdiction over its U.S.-based business, a stance that legal experts believe is unlikely to succeed. The case, brought by Indian news agency ANI, accuses OpenAI of copyright infringement for allegedly using its content without permission.

India, OpenAI’s second-largest market, has become a key battleground, with media groups—including those backed by billionaires Gautam Adani and Mukesh Ambani—joining ANI in opposition. While OpenAI maintains that its AI models use publicly available data in accordance with fair use principles, it is also contesting jurisdiction, citing its terms of service that specify dispute resolution in San Francisco. The company also argues that it does not maintain servers or data centers in India.

Legal experts, however, suggest that Indian courts are likely to reject OpenAI’s defense. Courts in the country have previously ruled against similar jurisdictional arguments, including in a 2022 case involving Telegram, where the Delhi High Court ruled that server location alone does not exempt a company from Indian law.

If OpenAI wins on the jurisdiction argument, it could avoid facing the copyright lawsuit in India. If it loses, it may be forced to delete ANI’s content from its training data and pay $230,000 in damages. The Delhi court is set to hear arguments on the case in February.

India has a history of holding foreign tech companies accountable to its laws, with past confrontations involving Google, Facebook, and X (formerly Twitter). The Indian government has maintained that global tech firms must comply with local regulations, reinforcing the challenge OpenAI faces in defending its position.

Amid the legal battle, OpenAI CEO Sam Altman and other senior executives are set to visit India on February 5, underscoring the market’s strategic importance.

 

Meta Accused of Using Pirated Books for AI Training with Zuckerberg’s Approval

/in /tarafından

Meta Platforms (META.O) is facing serious allegations from a group of authors, including Ta-Nehisi Coates and comedian Sarah Silverman, who claim that the company used pirated versions of copyrighted books to train its artificial intelligence systems, including the Llama language model. The authors argue that this use was approved by Meta’s CEO, Mark Zuckerberg, according to newly disclosed court documents.

The authors, who filed a lawsuit against Meta in 2023 for copyright infringement, allege that internal Meta documents, produced during the discovery phase of the case, show the company was fully aware that the books it used were pirated. Meta has yet to comment on the allegations.

The lawsuit focuses on Meta’s use of the AI training dataset LibGen, a repository of pirated books that the authors claim was distributed through peer-to-peer torrents. The new evidence presented by the authors suggests that Meta executives, including Zuckerberg, were aware that LibGen’s contents were pirated but chose to proceed with using the dataset. Internal Meta communications reportedly confirm this.

The authors are seeking to update their complaint, asserting that the new evidence strengthens their case for copyright infringement. The suit also brings renewed attention to the ongoing legal battles over the use of copyrighted materials to train AI systems, with defendants arguing that such uses may fall under “fair use” doctrine.

In a previous ruling, U.S. District Judge Vince Chhabria dismissed claims related to copyright infringement and the alleged unlawful stripping of copyright management information (CMI) by Meta’s chatbots. However, during a hearing on Thursday, Chhabria indicated that he would permit the authors to file an amended complaint, despite his doubts about the validity of the fraud and CMI claims.

 

Musk Seeks Auction of OpenAI Stake Through State Attorneys General

/in /tarafından

Elon Musk has asked the attorney generals of California and Delaware to facilitate an auction of OpenAI’s stake to establish the fair market value of its charitable assets during the company’s ongoing corporate restructuring. The request was made through a letter sent by Musk’s attorney, Marc Toberoff, on Tuesday, urging the states to implement a competitive bidding process to ensure the protection of public interests, as OpenAI works to distance its non-profit control.

Musk’s move comes amid OpenAI’s plans to convert into a public benefit corporation and separate its for-profit business from its charitable structure. OpenAI has stated that the valuation of its assets will be handled by independent financial advisors, despite Musk’s push for a more open bidding process.

Sam Altman, who co-founded OpenAI with Musk, helped propel the company into the limelight with the release of the ChatGPT AI tool in 2022. Backed by Microsoft, OpenAI was valued at $157 billion after raising $6.6 billion in investment. However, Musk, who owns the AI startup xAI, is challenging OpenAI’s conversion through legal means, arguing that it contradicts the original mission he had funded the company for. The court is expected to make a ruling later this month on Musk’s preliminary injunction.

In December, Delaware Attorney General Kathy Jennings filed an amicus brief, indicating her office’s scrutiny of OpenAI’s restructuring plans, while California’s Attorney General Rob Bonta has yet to make any public comments on the case. Musk’s legal efforts are supported by the AI safety group Encode, which has joined the push to block the transition, raising concerns about potential fiduciary violations.