US Local Newspapers Sue OpenAI and Microsoft Over AI Copyright Infringement

A coalition representing roughly 400 local newspapers in the United States has filed a federal lawsuit against OpenAI and Microsoft, accusing the companies of systematically copying and using their paywalled articles and other editorial content without permission to train large‑language‑model AI systems such as ChatGPT and Copilot. The plaintiffs argue that the companies have profited by billions of dollars from this undisclosed use and seek damages and an injunction to stop the practice, warning that unchecked AI training could constitute a “death knell for local journalism.” The case was lodged in the U.S. District Court for the Southern District of New York, joining more than 120 other copyright actions currently pending against AI firms.

Both OpenAI and Microsoft invoke the U.S. “fair use” doctrine, contending that the data used were publicly accessible and that their models transform the material. The lawsuit highlights a broader debate about the impact of generative AI on the news industry, a concern echoed in commentary from German media analyst Philipp Welte, who warned that AI‑driven misinformation and the erosion of independent press threaten democratic discourse worldwide.