Judge Lets Landmark Lawsuit Against OpenAI Move Forward

On March 26, 2025, U.S. District Judge Sidney Stein ruled that a copyright lawsuit from The New York Times and several other media organizations against OpenAI and Microsoft can proceed — signaling a significant moment in the legal standing of generative artificial intelligence (AI) tools like ChatGPT.  

While some claims were dismissed, Judge Stein allowed the central allegations to move forward, opening the door for what could be a groundbreaking jury trial.   

At the heart of this trial, the litigation examines what it means for intellectual property owners in the age of artificial intelligence and how much power tech giants can have in training AI models with copyrighted material.   

What is this Lawsuit, and Why Does IP Matter When It Comes to Generative AI?

The New York Times argues that OpenAI and Microsoft trained ChatGPT and other generative tools using millions of its articles without authorization. In some instances, they claim that AI tools reproduced articles nearly verbatim in user queries, raising alarms about copyright infringement and unfair competition.  

Executives from other involved media organizations echoed the concern, claiming the unlicensed use of journalistic content undermines their business models and constitutes wholesale theft.  

For its part, OpenAI says its training practices fall under fair use, relying on publicly available data to build tools that support innovation.  

This is one of the first high-profile lawsuits that directly challenge how generative AI systems are trained and could set precedents for future copyright law.   

For creators, journalists, and business owners, this asks:   

• Who owns content generated or reproduced by AI? A UK Court smacked down on Generative AI as a creator, but this could be relevant for U.S. courts to move forward.

• Does using copyrighted material to train AI qualify as fair use?

• How can IP holders protect their work? We’ve seen this hit the hardest with the Hollywood strikes in 2023 and how this will shape the future of movies.

Navigating IP Law in the Age of Generative AI

At Richards Rodriguez & Skeith, we closely monitor how courts interpret intellectual property rights for small to mid-market businesses in Central Texas. As AI tools become more sophisticated and integrated into everyday business, the lines from original content, machine learning, and copyright infringement are becoming harder to see and enforce.   

If you have questions about AI and its legal standing in the realm of intellectual property, Richards Rodriguez & Skeith’s intellectual property attorneys may have the answers for you. Contact our firm today to get started.