Court Dismisses Microsoft in Intercept AI Lawsuit While DMCA Claim Survives
A federal court dismisses Microsoft from The Intercept's AI training lawsuit while allowing a key copyright management claim against OpenAI to proceed. Meanwhile, the plaintiffs in a similar Raw Story Media case request permission to file an updated complaint after their initial dismissal.
A federal court issues a major ruling in The Intercept Media's lawsuit against OpenAI and Microsoft by granting Microsoft's motion to dismiss with prejudice. The court also partially grants OpenAI's motion to dismiss, eliminating a specific copyright management information claim while allowing another related claim to move forward. The court provides no explanation for its decision yet, stating that the rationale will issue in due course.
This development contrasts sharply with a similar case involving Raw Story Media and Alternet, which the court previously dismissed entirely due to a lack of standing and a failure to allege a cognizable damages theory. The survival of the copyright management information removal claim in The Intercept's case represents a significant shift from the Raw Story ruling, signaling potential new pathways for publishers to challenge AI training practices.
Following their defeat, the Raw Story Media plaintiffs ask the court for another opportunity to argue their case by requesting leave to file a First Amended Complaint. They plan to argue that the removal of copyright management information from their articles constitutes actual copyright infringement rather than just a procedural injury. Both cases closely track the ongoing legal battle over how major AI companies use publisher content to train their large language models.