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Eight Newspapers File Lawsuit Against OpenAI, Microsoft

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Eight major U.S. newspapers have filed a lawsuit against OpenAI and Microsoft, claiming they have violated copyright laws.

The lawsuit was filed in the Southern District of New York and contends that the companies took copyrighted material from these newspapers without permission to train their artificial intelligence (AI) products, such as ChatGPT and Microsoft’s Copilot.

Details of the Lawsuit

The plaintiffs in the case involve The New York Daily News, The Chicago Tribune, The Orlando Sentinel, The Sun Sentinel of Florida, The San Jose Mercury News, The Denver Post, The Orange County Register, and The St. Paul Pioneer Press. 

These newspapers, under the management of the the MediaNews Group and Tribune Publishing subsidiaries of Alden Global Capital, allege that millions of their copyrighted articles were used to train the AI models developed by OpenAI and Microsoft. The legal action does not state any specific monetary damages; rather, it focuses on the necessity of compensatory measures and a jury trial.

Allegations Against AI Practices

The complaint underscores a growing concern among news publishers that their content is being utilized without proper compensation or acknowledgment, potentially undermining traditional news platforms.

According to the lawsuit, the AI models not only use copyrighted text but also sometimes generate outputs that misattribute or distort information, which could harm the publishers’ credibility and revenue streams.

According to the publishers, AI-generated responses usually reproduce the content word for word from the journals stored behind the paywalls without even linking back to the original sites. This habit could lead to the reduction of the demand for the direct subscriptions, affecting the financial state of those publications.

Response from OpenAI and Microsoft

As for the latest lawsuit, however, OpenAI and Microsoft have not yet responded, although in some previous cases, such as the New York Times, they have defended their actions. The companies claim that teaching AI models with internet-derived data is legal, finding comparisons with how other types of media utilize copyrighted content using fair use provisions.

They argue that the AI tools provide a revolutionary application and ought to be perceived as a technological progress rather than the replacement of human generated content.

The lawsuit is in the context of a wider inspection of ethical use of copyrighted materials in training AI models. The issue led to a multitude of responses in the media landscape as some publishers decided to negotiate with tech companies directly. For example, The Financial Times recently reached an agreement with OpenAI, setting a precedent for potential licensing arrangements.

Read Also: VALR Bags Regulatory Nod In Poland In Major Global Expansion Push

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Ripple Drops Its Cross Appeal Against The US SEC

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Ripple has dropped its cross-appeal against the US Securities and Exchange Commission (SEC) following the latter’s decision to drop its case against the crypto firm last week. The firm’s Chief Legal Officer (CLO), Stuart Alderoty, also revealed what will happen with the $125 million penalty the Court awarded against them.

Ripple Drops Cross Appeal Against The US SEC

In an X post, Ripple’s CLO, Stuart Alderoty, revealed that his firm has now agreed to drop its cross-appeal against the US SEC after the Commission decided to drop the appeal without conditions.

This development officially ends the long-running legal battle between the crypto firm and the SEC, as the latter has also agreed to drop the Ripple lawsuit in its entirety.

Alderoty also revealed what will happen to the monetary judgment, which Judge Analisa Torres awarded against the crypto firm. He stated that the Commission will keep $50 million of the $125 million fine, which is already in an interest-bearing escrow in cash, while Ripple will collect the balance of $75 million.

Meanwhile, the US SEC will ask the Court to lift the standard injunction it imposed against the crypto firm at the Commission’s request. This move is subject to the Commission vote, the drafting of final documents, and routine court processes.

Significance Of This Development

Besides ending the Ripple lawsuit, the SEC’s agreement to request that the Court drop the standard injunction against the crypto firm paves the way for a surge in XRP’s adoption since the company can now proceed to carry on its on-demand liquidity (ODL) sales as usual.

Legal experts had predicted that Ripple was holding out on settlement to get the Commission to lower the fine and request the Court to drop the injunction. As such, these developments undoubtedly represent a massive victory for the firm.

CEO Brad Garlinghouse recently discussed the company’s future. He predicted that their US operations would grow in the coming months following the end of the lawsuit and thanks to imminent crypto legislation.

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Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across several topics and niches. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover, a traveler and a part-time degen.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Brad Garlinghouse Discusses Ripple’s Future, Crypto Legislation & Blockchain Technology As Lawsuit Ends

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Ripple CEO Brad Garlinghouse recently discussed what is next for his firm and how crypto legislation could also positively impact the crypto industry’s trajectory and the future of blockchain technology. This comes just days after the US SEC agreed to drop the long-running Ripple lawsuit.

Ripple CEO Brad Garlinghouse Reveals What As SEC Drops Lawsuit

In a FOX Business interview, Brad Garlinghouse discussed what next for his firm following the SEC’s decision to drop the Ripple lawsuit. He noted that about 95% of the company’s customers are overseas, as the lawsuit hindered their US operations.

However, he suggested that will likely change moving forward as they grow their operations in the country. Garlinghouse remarked that they have already been witnessing domestic interest since US President Donald Trump took office. The Ripple CEO revealed they have signed more deals since then than in the six months preceding Trump’s inauguration.

The company is expected to grow further in the US after the SEC agreed to drop the Ripple lawsuit. Brad Garlinghouse predicts that his firm’s innovative technology will play out over the next ten to twenty years in terms of how it integrates and rewires the US financial structure in terms of payments, real estate, and securities transactions.

The Ripple CEO again took time to highlight how Trump’s crypto-related executive orders, especially the creation of the Strategic Bitcoin Reserve and Digital Asset Stockpile, have created a more friendly environment for crypto firms in the US.

He noted that financial institutions are now more open to crypto technology. As CoinGape reported, the OCC has cleared Federal Banks to engage in crypto activities.

On Stablecoin Legislation & Its Impact

Brad Garlinghouse commended the efforts of legislators like Senator Cynthia Lummis and Rep French Hill to provide regulatory clarity. These lawmakers are championing the market structure and stablecoin bills to create a regulatory framework that will guide crypto firms. Senator Lummis also recently reintroduced the Bitcoin Act to codify Trump’s vision of a Strategic Bitcoin Reserve.

The Ripple CEO welcomed the idea of regulatory clarity, stating that it would reassure customers that they can engage with them in good faith. He remarked that these customers would feel more comfortable using their technologies without fear of regulators attacking them. Garlinghouse added that this would also enable more job creation, innovation, and capital formation in the US.

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Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across several topics and niches. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover, a traveler and a part-time degen.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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US SEC To Shift Attention From Crypto Enforcement To Traditional Cases: Details

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A change of guard at the US Securities and Exchange Commission (SEC) is powering a shift away from cryptocurrency enforcement. Under new leadership, the US SEC is narrowing its focus on traditional securities cases driven by a handful of factors.

US SEC Turns Its Gaze Away From Crypto Enforcement

According to a Reuters report, the US SEC is bringing down the curtain on its five-year rampage against the cryptocurrency industry. Going forward, the Commission will focus its resources on traditional cases involving corporate and individual securities fraud.

The SEC’s interim Enforcement Director Sam Waldon revealed that the Commission will give priority to individual cases. During the Gary Gensler administration, the SEC directed the bulk of its resources toward crypto enforcement against industry giants.

With Gensler out of the picture and new brass coming on board, the SEC is changing its stance. Paul Atkins is set to face a nomination hearing at Capitol Hill this week, signaling a breath of fresh air for the Commission.

For starters, a string of case dismissals against cryptocurrency companies, particularly the Ripple SEC case, accentuates a change in strategy. Furthermore, declarations that memecoins are not securities and exempting Proof-of-Work mining from securities obligations underscores the point.

Securities Watchdog Does Not Have The Numbers To Sustain Crypto Enforcement

Apart from new leadership, a key factor in the Commission’s changing stance lies in its dwindling staff strength. The SEC is recovering from a gale of exodus following plans by President Donald Trump and Elon Musk to reduce the government’s workforce.

“Creativity is probably not where we want to be,” said Waldon, hinting at a steep drop in employee numbers.

A restructuring of the defunct Crypto Assets and Cyber Unit and the launch of a Crypto Task Force signals a change in direction. The Crypto Task Force is pursuing roundtables with ecosystem players rather than regulation by enforcement that characterized the SEC.

The SEC has to respond to a FOIA request filed by Coinbase seeking clarity over the financial implications of its five-year enforcement over the cryptocurrency industry.

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