Business
Column: Who's really winning in Sarah Silverman's copyright suit against OpenAI?
If you’ve been following the war between authors and the purveyors of AI chatbots over whether the latter are infringing the copyrights of the former, you might have concluded that comedian and author Sarah Silverman and several fellow authors suffered a crushing blow in their lawsuit against OpenAI, the leading bot maker.
In his ruling Feb. 12, federal Judge Areceli Martínez-Olguín of San Francisco indeed tossed most of the copyright claims Silverman et. al had brought against OpenAI in lawsuits filed last year.
That’s the way much of the press portrayed the outcome: “Judge dismisses most of Sarah Silverman’s copyright infringement lawsuit” (VentureBeat). And “OpenAI Scores Court Victory” (Forbes). And “Sarah Silverman, Authors See Most Claims Against OpenAI Dismissed by Judge” (Hollywood Reporter).
If someone tells you it’s not about the money but the principle, they’re really talking about the money.
— Robin Feldman, UC College of the Law
Well, not really. Of the six counts in the authors’ lawsuit, one — whether OpenAI directly copied or distributed the plaintiffs’ works — wasn’t even before the judge because OpenAI hadn’t asked him to dismiss it. It’s a key allegation, and it’s still alive.
Of the other five, the judge cleared one to proceed; that’s a claim that OpenAI engaged in an “unfair” business practice under California law. He dismissed four others but gave the plaintiffs permission to amend their complaint and try again. The amended complaint is due before him by March 13.
At best, this is a mixed victory for both sides. But this lawsuit and a couple of other similar cases provide a road map for how the copyright issue may play out, in and out of court: with settlements that outline how much the artificial intelligence industry should pay copyright holders for using their works, and how those payments should be made.
Any such settlements would have to recognize that AI chatbots are here to stay, but also that they can’t mine published material for free.
“It’s hard to imagine that you could put the genie back in the bottle — that courts would decide that generative AI may not be used under any circumstances at any time,” says Robin Feldman, an expert in intellectual property law at UC College of the Law. “At the same time, it’s hard to imagine that generative AI could end up free to do whatever it wants at any time with copyrighted material.”
It’s fair to imagine, as well, that the issue is going to pose a headache for judges right up to the point that it lands before the Supreme Court, as Feldman believes is likely. That’s because of two aspects that are anything but cut-and-dried: copyright law and a new technology. U.S. copyright law is extremely complicated, and the technology bears features that don’t resemble anything seen in earlier technology transitions. Put them together, and the complexities are magnified exponentially.
Before going further, let’s define the landscape.
OpenAI is a high-tech firm with an investment from Microsoft that has been reported to be as much as $13 billion. Its best-known product is ChatGPT, a chatbot that spits out human-sounding answers to questions posed in plain language, though sometimes the “humans” it strives to emulate come off like idiots or plagiarists.
As I’ve reported, the chatbot business, like artificial intelligence research throughout its history, has been infected with hype. But it’s currently the target of a high-tech gold rush based on expectations that it will dramatically remake industries such as manufacturing, medicine, law — almost anything you can name. We’ll see.
As I’ve also reported, it’s a misnomer to call chatbots “artificial intelligence.” They’re not intelligent by any common definition of the word; they’re just good at seeming intelligent to an outsider unaware of the electronic processing inside them — a simulacrum of human thought, not the product of cogitation.
Chatbots don’t create content, as such. They have to be “trained” by pumping their databases full of human-produced content — books, newspaper articles, junk scraped from the web, etc. All this material allows the bots to generate superficially coherent answers to questions by generating prose patterns and sometimes repeating facts they dredge up from their databases.
That brings us back to the copyright issue. Silverman and other plaintiffs, including the writers Michael Chabon and Ta-Nehesi Coates, who filed a complaint similar to hers last year, contend that in using their works to train its chatbots, OpenAI is copying their works without permission, compensation or credit. Having “ingested” their works, the bots are “able to emit convincingly naturalistic text outputs.”
Indeed, Silverman’s lawsuit states that when asked to do so, ChatGPT is able to generate accurate summaries of the copyrighted works — “something only possible if ChatGPT was trained” on those works.
Among OpenAI’s defenses is that its use of copyrighted material falls within the exemption known as “fair use.” That’s a concept that allows snippets of published works to be quoted in reviews, summaries, news reports, research papers and the like, or to be parodied or repurposed in a “transformative” way.
OpenAI argues that previous court rulings say that creating copies of a copyrighted work as a preliminary step in developing a new, non-infringing product falls safely under the fair use protection, and that’s all it’s doing.
But it’s not at all clear that OpenAI’s interpretation will stand. In copyright law, fair use is a moving target, interpreted by judges on a case-by-case basis. “There are no hard-and-fast rules, only general guidelines and varied court decisions,” according to a digest by Stanford University librarians.
As chatbot developers snarf up more content to “train” their products, the potential copyright claims are only going to multiply. A disclosure: At least three of my books are in a database used to train some chatbots. I’m not a plaintiff in any of these lawsuits, but since they’re all fashioned as class actions in which I might qualify as a class member, it’s conceivable that if any go to trial and end with a class settlement, I might get a (probably vanishingly tiny) payout.
The lawsuits by individual writers are only one category. As I reported earlier, Getty Images has sued an AI company for copying millions of historical and contemporary photographs to which it holds licensing rights, allegedly to build a competing business. Dozens of music publishers have sued another AI firm for its “mass copying and ingesting” of copyrighted song lyrics to enable its bot to regurgitate them to its users by generating “identical or nearly identical copies of those lyrics” on request.
A lawsuit brought by New York Times Co. against Microsoft and OpenAI has attracted heavy attention not only because of the prominence of the plaintiff but because the newspaper produced evidence that OpenAI’s chatbot actually spits out lengthy verbatim passages from Times articles. This allows the Times to assert that the chatbot is cutting into the market for its work, a factor that judges have sometimes considered to reject a fair-use defense.
That’s a claim that the Silverman and Chabon lawsuits weren’t able to back up with evidence, which is what prompted Judge Martínez-Olguín to put some of their copyright claims on hold. He invited the plaintiffs to come back with allegations “that any particular output is substantially similar — or similar at all — to their books,” at which point he might reconsider.
Feldman observes that this entire legal issue is in the early “posturing” stage. The AI industry bases its defense on the principle that it’s doing nothing wrong and doesn’t owe creators anything. The creators say the principle is that what the chatbot developers are up to produces “an irreparable injury that cannot fully be compensated or measured in money,” to quote the Silverman lawsuit.
But money has settled previous donnybrooks over new technologies. Most notably, the recording industry and broadcasters solved their dispute over radio and television broadcasting of music with a licensing arrangement initially reached more than 80 years ago and that has survived in its essence to cover not only radio and television stations but also “streaming services, concert venues, bars, restaurants, and retail establishments.” (That’s not to say that artists are necessarily fairly compensated for these uses.)
That’s the best bet for how the chatbot issue will unfold, in time: with a financial arrangement sufficiently fair to both sides to be blessed by a judge. Feldman advises not to buy into the assertions on both sides that with principles at stake, no financial arrangement is possible. The New York Times, indeed, says that it filed its lawsuit only after negotiations to place a financial value on the use of its content failed to produce a “resolution.”
Feldman cites an adage (often attributed to the turn-of-the-century humorist Kin Hubbard) that holds: “If someone tells you it’s not about the money but the principle, they’re really talking about the money.”
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Business
Civil case against Alec Baldwin, ‘Rust’ movie producers advances toward a trial
Nearly two years after actor Alec Baldwin was cleared of criminal charges in the “Rust” movie shooting death, a long simmering civil negligence case is inching toward a trial this fall.
On Friday, a Los Angeles Superior Court judge denied a summary judgment motion requested by the film producers Rust Movie Productions LLC, as well as actor-producer Baldwin and his firm El Dorado Pictures to dismiss the case.
During a hearing, Superior Court Judge Maurice Leiter set an Oct. 12 trial date.
The negligence suit was brought more than four years ago by Serge Svetnoy, who served as the chief lighting technician on the problem-plagued western film. Svetnoy was close friends with cinematographer Halyna Hutchins and held her in his arms as she lay dying on the floor of the New Mexico movie set. Baldwin’s firearm had discharged, launching a .45 caliber bullet, which struck and killed her.
The Bonanza Creek Ranch in Santa Fe, N.M. in 2021.
(Jae C. Hong / Associated Press)
Svetnoy was the first crew member of the ill-fated western to bring a lawsuit against the producers, alleging they were negligent in Hutchins’ October 2021 death. He maintains he has suffered trauma in the years since. In addition to negligence, his lawsuit also accuses the producers of intentional infliction of emotional distress.
Prosecutors dropped criminal charges against Baldwin, who has long maintained he was not responsible for Hutchins’ death.
“We are pleased with the Court’s decision denying the motions for summary judgment filed by Rust Movie Productions and Mr. Baldwin,” lawyers Gary Dordick and John Upton, who represent Svetnoy, said in a statement following the hearing. “He looks forward to finally having his day in court on this long-pending matter.”
The judge denied the defendants’ request to dismiss the negligence, emotional distress and punitive damages claims. One count directed at Baldwin, alleging assault, was dropped.
Svetnoy has said the bullet whizzed past his head and “narrowly missed him,” according to the gaffer’s suit.
Attorneys representing Baldwin and the producers were not immediately available for comment.
Svetnoy and Hutchins had been friends for more than five years and worked together on nine film productions. Both were immigrants from Ukraine, and they spent holidays together with their families.
On Oct. 21, 2021, he was helping prepare for an afternoon of filming in a wooden church on Bonanza Creek Ranch. Hutchins was conversing with Baldwin to set up a camera angle that Hutchins wanted to depict: a close-up image of the barrel of Baldwin’s revolver.
The day had been chaotic because Hutchins’ union camera crew had walked off the set to protest the lack of nearby housing and previous alleged safety violations with the firearms on the set.
Instead of postponing filming to resolve the labor dispute, producers pushed forward, crew members alleged.
New Mexico prosecutors prevailed in a criminal case against the armorer, Hannah Gutierrez, in March 2024. She served more than a year in a state women’s prison for her involuntary manslaughter conviction before being released last year.
Baldwin faced a similar charge, but the case against him unraveled spectacularly.
On the second day of his July 2024 trial, his criminal defense attorneys — Luke Nikas and Alex Spiro — presented evidence that prosecutors and sheriff’s deputies withheld evidence that may have helped his defense . The judge was furious, setting Baldwin free.
Variety first reported on Friday’s court action.
Business
California’s gas prices push Uber and Lyft drivers off the road
The highest gas prices in the country are making it tougher for some gig drivers to make a living.
Gas prices have shot up amid the war in the Middle East. On average, California gas prices are the most expensive in the United States, according to data from the American Automobile Assn. The average price of regular gas in California is almost $6. The national average is a little above $4.
While Uber and Lyft drivers have concocted clever ways to cut gas consumption, they say that without some relief they will be forced to leave the ride-hailing business.
John Mejia was already struggling to make money as a part-time Lyft driver when soaring gas prices made his side hustle even harder.
“Unfortunately, it’s the economics of paying less to drivers and gas prices,” he said. “It actually is pulling people out of the business.”
Guests at The Westin St. Francis hotel get into an Uber.
(Jess Lynn Goss / For The Times)
Gig work offers drivers the freedom to work for themselves and more flexibility, but being independent contractors also means they must shoulder unexpected costs.
Ride-sharing companies say they’re trying to help, but drivers say the gas relief comes with caveats. For now, drivers say they’re being pickier about what rides they accept, cutting hours and are looking at other ways to make money.
Mejia, who started driving for Lyft more than a decade ago, said in his early days, he would sometimes make $400 in three hours. Now it takes 12 hours to rake in $200.
The San Francisco Bay Area consultant is an active member of the California Gig Workers Union, so he knows he isn’t alone. California has more than 800,000 gig rideshare drivers, according to the group, which is affiliated with the Service Employees International Union.
On social media sites such as Reddit and Facebook, gig workers have posted about how the higher gas prices are eating into their earnings. Among the tricks they are suggesting: reducing the number of times the ignition is turned on or off, avoiding traffic, working in specific neighborhoods and at times with high demand and switching to electric vehicles.
Gig drivers usually have only seconds to decide whether to accept a ride on the app, but they have become more strategic about which rides and deliveries they accept.
That means they are more likely to sit back in their cars and wait for higher fares for quick pick-up and drop-off.
“I highly recommend the ‘decline and recline’ strategy, rejecting unprofitable rides until a better one appears,” wrote Sergio Avedian, a driver, in the popular blog the Rideshare Guy.
Pedestrians cross the street in front of a Lyft and Uber driver on Wednesday. High gas prices have made it hard for gig drivers to make a living, cutting into their profits.
(Jess Lynn Goss / For The Times)
Uber, Lyft and other companies have unveiled several ways to help drivers save on gas.
Uber said drivers can get up to 15% cash back through May 26 with the Uber Pro card, a business debit Mastercard for drivers and couriers. Based on a worker’s tier, they can get up to $1 off per gallon of gas through Upside — an app that offers cash rewards — and up to 21 cents off per gallon of gas with Shell Fuel Rewards. The company also offers incentives for drivers who want to switch to electric vehicles.
“We know the price of gas is top of mind for many rideshare and delivery drivers across the country right now,” Uber said in a blog post about its gas savings efforts.
Lyft also said it’s expanding gas relief through May 26 because the company knows that the extra cost “hits hardest for drivers who depend on driving for their income.”
The company is offering more cash back, depending on the driver’s tier, for drivers who use a Lyft Direct business debit card to pay for gas at eligible gas stations. They can get an additional 14 cents per gallon off through Upside.
Drivers say the fine print on the offers dictates which card they use and where they fill up gas, making it difficult for them to save money.
“If I do the math, it’s ridiculous,” Mejia said. “They’re offering us nothing.”
Uber declined to comment, but pointed to its blog post about the gas relief efforts. Lyft also referenced the blog post and said “the gas savings were structured through rewards to maximize stackable opportunities.”
Guests at The Westin St. Francis hotel get into an Uber.
(Jess Lynn Goss / For The Times)
Gig workers have struggled with rising gas prices in the past.
In 2022, Lyft and Uber temporarily added a surcharge to their fares amid record-high gas prices following Russia’s invasion of Ukraine. This year, Uber is adding a fuel charge to its fares in Australia for roughly two months to offset the high cost of gas for drivers. Lyft said it hasn’t added a fuel charge in the U.S. or elsewhere.
Margarita Penalosa, who drives full time for Uber and Lyft in Los Angeles, started as a rideshare driver in 2017. Back then, gas was cheaper. She would easily hit her goal of making $300 in eight hours. Now she’s making just $250 after working as much as 14 hours.
Gas prices, she said, used to be less than $3 per gallon. Now some gas stations are charging more than $8 per gallon.
“Take out the gas. Take out the mileage from my car and maintenance. How much [do] I really make? Probably I get $11 for an hour,” she said.
Jonathan Tipton Meyers wants to spend fewer hours as a rideshare driver.
He already juggles multiple gigs even while driving for Uber and Lyft in Los Angeles. He’s a mobile notary and loan signing agent, a writer and performer.
Driving is “a very challenging, full-time job,” he said. “It’s very taxing and, of course, wages were just continually decreasing.”
John Mejia, a longtime Lyft and Uber driver, poses for a portrait before attending a meeting about unionizing gig drivers.
(Jess Lynn Goss / For The Times)
Even if oil continues to flow through the Strait of Hormuz, which Iran reopened Friday, it could take a while for gas prices to come down to earth, said Mark Zandi, the chief economist at Moody’s Analytics.
“There’s an old adage that prices rise like a rocket and fall like a feather,” he said. “I think that’ll apply.”
In the meantime, it will be survival of the fittest drivers. If enough of them decide to leave the apps, the ride-hailing companies could be forced to raise fares further to attract some back.
“Those who approach rideshare driving strategically, tracking expenses, choosing trips carefully, and optimizing efficiency are far more likely to weather periods of high gas prices,” wrote Avedian in the Rideshare Guy blog. “For everyone else, a spike at the pump can quickly turn rideshare driving from a side hustle into a money-losing venture.”
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