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A lawsuit against ChatGPT maker OpenAI Inc. brought by a group of Canadian media companies can proceed in Ontario, a court ruled on Friday.
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In November 2024, a consortium of Canadian media publishers, including Postmedia Network Inc., which publishes the Financial Post among other titles, CBC/Radio-Canada, The Globe and Mail, the Canadian Press and Toronto Star Newspapers Ltd., sued OpenAI accusing it of “regularly breaching” copyright and online terms of use by scraping large troves of content from their websites to train its AI models and develop products such as ChatGPT.
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“News media companies invest hundreds of millions of dollars into reporting Canadians’ critical stories,” the media companies said in a joint statement at the time. “OpenAI is capitalizing and profiting from the use of this content, without getting permission or compensating content owners.”
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San Francisco-headquartered OpenAI in September brought a motion to the Ontario Superior Court of Justice to have the publishers’ lawsuit suspended or dismissed, arguing that Ontario did not have the jurisdiction to settle the claim on the basis that its commercial activities took place outside of the province.
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On Friday, the Ontario court concluded that the case can proceed in the province. “A good, arguable case has been made that the Copyright Act breaches are sufficiently connected to Ontario,” the Friday ruling said. Canada’s legal system “favours allowing Canadian authors of Canadian-created works with claims against foreign companies for breaches of Canadian copyright and other laws to pursue those claims here,” it said.
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The court additionally awarded the Canadian news media companies $260,000 in costs.
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OpenAI is facing similar lawsuits in the U.S. Eight newspaper publishers including the New York Daily News and the Chicago Tribune sued OpenAI and Microsoft Corp. last April alleging they used “millions” of copyrighted articles without consent and payment, according to the complaint. The New York Times launched legal action against the two companies in December 2023.
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