OpenAI and Microsoft are facing a new copyright infringement lawsuit filed by author Julian Sancton in a New York federal court. The lawsuit alleges unauthorized use of copyrighted works in training ChatGPT, marking a significant case as it names both companies as defendants.

Key aspects of the lawsuit:

• Claims both companies "took the combined works of humanity without permission"
• Microsoft is included due to providing the computing infrastructure for training
• Specifically mentions Sancton's book "Madhouse at the End of the Earth" as being used without permission
• Alleges OpenAI transformed from a non-profit into a "complex, secretive labyrinth of for-profit entities"

The lawsuit provides evidence that ChatGPT previously confirmed using Sancton's book in its training data, though the system has reportedly been modified to no longer disclose such information.

The plaintiff seeks:

• Statutory and compensatory damages
• Disgorgement of profits
• Permanent injunction against alleged infringement

This case differs from previous lawsuits (like those from Sarah Silverman and the Authors Guild) by targeting both OpenAI and Microsoft's infrastructure role, potentially setting a broader precedent for AI training liability.

The lawsuit emphasizes that while humans learning from books provide compensation through purchases or library borrowing, OpenAI's use of copyrighted content bypasses any form of author compensation while creating a system that could potentially replace their work.

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