Background
Authors Guild and a group of well-known authors filed a putative class action on 19 September 2023 alleging that OpenAI copied their copyrighted books without permission and used them in the development of its AI systems, while also seeking class-wide relief for broader author harm. The case moved quickly into active discovery, the author actions were structurally coordinated through interim co-lead counsel, and an attempt by California plaintiffs to intervene and seek dismissal, stay, or transfer under the first-to-file rule was rejected, allowing the New York litigation to continue on its own track. The case later became part of the OpenAI copyright MDL, where it developed into a major discovery and merits proceeding covering output claims, dataset disputes, privilege fights, and technical evidence issues. (ECF Nos. 1, 36, 54, 70, 71, 100, 109, 215, 148, 201, 202, 716.)
AI interaction
Plaintiffs alleged that OpenAI used copyrighted books as training material for GPT models and that ChatGPT could then generate summaries and sequel-style or derivative-style outlines based on those works. In the later MDL-stage ruling, Judge Stein held that the consolidated complaint plausibly alleged output-based copyright infringement because at least some ChatGPT outputs could be found substantially similar to protected elements of the authors’ books, while other rulings dealt with training-data handling, the Books1 and Books2 datasets linked to LibGen, privilege over internal discussions, executive-device and social-media messages, and Microsoft’s Bing Index as a possible source of data shared with OpenAI. (ECF Nos. 1, 148, 201, 291, 672, 716, 722, 782, 816.)
Notes
- The Opinion and Order denied intervention by California plaintiffs, confirming that the New York court would retain jurisdiction over claims involving AI model training. In April 2025, the Judicial Panel on Multidistrict Litigation consolidated related actions into In re OpenAI, Inc., Copyright Infringement Litigation (MDL No. 3143) for coordinated pre-trial proceedings.
- On 31 March 2026, the court entered an order terminating motions, granted a motion to admit counsel pro hac vice, and an amended Rule 7.1 corporate disclosure statement was filed stating that OpenAI, Inc. changed its name in October 2025 to OpenAI Foundation and identifying Microsoft Corporation and Softbank Group Corporation as publicly held corporations with qualifying financial interests in parts of the OpenAI structure. (ECF Nos. 1150, 1151, 1152.)