OpenAI Loses Bid to Dismiss Multi-District Class Action Over ChatGPT Outputs
Briefly

OpenAI Loses Bid to Dismiss Multi-District Class Action Over ChatGPT Outputs
"OpenAI argued that the plaintiffs had failed to allege substantial similarity between the works and ChatGPT's outputs, but Judge Sidney Stein of the U.S. District Court for the Southern District of New York said that "[a] more discerning observer could reasonably conclude that the allegedly infringing outputs are substantially similar to plaintiffs' copyrighted works." The "more discerning observer" test applies when the works in question "contain both copyrightable elements-such as characters, plot, and setting...-and non-copyrightable elements-such as stock themes, stock characters, scenes a faire, and abstract ideas," explained the court."
"The plaintiffs included examples incorporated by reference from the Consolidated Class Action Complaint in their opposition to the motion to dismiss of allegedly infringing outputs such as summaries of "A Game of Thrones" author George R.R. Martin's works which, despite not recounting "'[e]very intricate plot twist and element of character development'....most certainly attempts at abridgment or condensation of some of the central copyrightable elements of t"
Judge Sidney Stein of the U.S. District Court for the Southern District of New York ruled that OpenAI cannot stop a consolidated, multi-district class action brought by dozens of authors alleging direct copyright infringement by ChatGPT outputs. The court found that a more discerning observer could reasonably conclude that the allegedly infringing outputs are substantially similar to plaintiffs' copyrighted works. The court applied the "more discerning observer" test, distinguishing copyrightable elements (characters, plot, setting) from non-copyrightable elements, and noted a footnote saying the ordinary observer test would produce the same result. Plaintiffs submitted example outputs, including summaries of George R.R. Martin's works, arguing those summaries condense central copyrightable elements.
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