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OpenAI has Little Legal Recourse Versus DeepSeek, Tech Law Experts Say
Audra Tillyard edited this page 2025-02-04 18:56:56 +00:00


OpenAI and the White House have actually accused DeepSeek of using ChatGPT to inexpensively train its new chatbot.
- Experts in tech law state OpenAI has little recourse under copyright and contract law.
- OpenAI's terms of usage may apply but are mostly unenforceable, they state.
Today, OpenAI and the White House implicated DeepSeek of something similar to theft.

In a flurry of press statements, photorum.eclat-mauve.fr they stated the Chinese upstart had bombarded OpenAI's chatbots with inquiries and hoovered up the resulting information trove to rapidly and inexpensively train a design that's now nearly as excellent.

The Trump administration's top AI czar stated this training procedure, called "distilling," amounted to intellectual property theft. OpenAI, on the other hand, informed Business Insider and other outlets that it's examining whether "DeepSeek might have wrongly distilled our designs."

OpenAI is not saying whether the company prepares to pursue legal action, instead assuring what a representative termed "aggressive, proactive countermeasures to safeguard our innovation."

But could it? Could it take legal action against DeepSeek on "you took our material" premises, similar to the premises OpenAI was itself sued on in a continuous copyright claim filed in 2023 by The New York City Times and other news outlets?

BI posed this question to professionals in technology law, photorum.eclat-mauve.fr who stated tough DeepSeek in the courts would be an uphill fight for OpenAI now that the content-appropriation shoe is on the other foot.

OpenAI would have a tough time showing a copyright or copyright claim, these legal representatives stated.

"The concern is whether ChatGPT outputs" - suggesting the answers it produces in response to questions - "are copyrightable at all," Mason Kortz of Harvard Law School said.

That's since it's uncertain whether the answers ChatGPT spits out certify as "imagination," he said.

"There's a teaching that states imaginative expression is copyrightable, but realities and ideas are not," Kortz, who teaches at Harvard's Cyberlaw Clinic, said.

"There's a substantial question in copyright law today about whether the outputs of a generative AI can ever make up creative expression or if they are necessarily vulnerable facts," he included.

Could OpenAI roll those dice anyway and declare that its outputs are protected?

That's not likely, the lawyers stated.

OpenAI is already on the record in The New York Times' copyright case arguing that training AI is an allowed "fair use" exception to copyright defense.

If they do a 180 and tell DeepSeek that training is not a fair usage, "that may come back to type of bite them," Kortz stated. "DeepSeek could say, 'Hey, weren't you just saying that training is reasonable use?'"

There might be a difference in between the Times and DeepSeek cases, Kortz included.

"Maybe it's more transformative to turn news articles into a design" - as the Times implicates OpenAI of doing - "than it is to turn outputs of a design into another model," as DeepSeek is stated to have actually done, Kortz said.

"But this still puts OpenAI in a pretty difficult situation with regard to the line it's been toeing concerning reasonable usage," he included.

A breach-of-contract lawsuit is more likely

A breach-of-contract lawsuit is much likelier than an IP-based suit, though it includes its own set of issues, stated Anupam Chander, who teaches technology law at Georgetown University.

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The terms of service for Big Tech chatbots like those developed by OpenAI and Anthropic forbid using their material as training fodder for a completing AI design.

"So possibly that's the lawsuit you might potentially bring - a contract-based claim, not an IP-based claim," Chander said.

"Not, 'You copied something from me,' but that you gained from my design to do something that you were not allowed to do under our contract."

There may be a drawback, Chander and Kortz said. OpenAI's terms of service need that the majority of claims be dealt with through arbitration, not lawsuits. There's an exception for claims "to stop unapproved use or abuse of the Services or copyright violation or misappropriation."

There's a bigger drawback, however, experts said.

"You need to understand that the fantastic scholar Mark Lemley and a coauthor argue that AI regards to usage are likely unenforceable," Chander said. He was referring to a January 10 paper, "The Mirage of Artificial Intelligence Terms of Use Restrictions," by Stanford Law's Mark A. Lemley and Peter Henderson of Princeton University's Center for Infotech Policy.

To date, "no design creator has actually attempted to impose these terms with monetary charges or injunctive relief," the paper states.

"This is likely for great reason: we think that the legal enforceability of these licenses is questionable," it includes. That's in part due to the fact that model outputs "are largely not copyrightable" and because laws like the Digital Millennium Copyright Act and forum.altaycoins.com the Computer Fraud and nerdgaming.science Abuse Act "deal minimal option," it states.

"I believe they are likely unenforceable," Lemley told BI of OpenAI's terms of service, "because DeepSeek didn't take anything copyrighted by OpenAI and since courts usually won't implement arrangements not to complete in the absence of an IP right that would prevent that competition."

Lawsuits between parties in various countries, each with its own legal and enforcement systems, are constantly challenging, .

Even if OpenAI cleared all the above hurdles and won a judgment from an US court or arbitrator, "in order to get DeepSeek to turn over cash or stop doing what it's doing, the enforcement would boil down to the Chinese legal system," he said.

Here, OpenAI would be at the grace of another exceptionally complicated location of law - the enforcement of foreign judgments and the balancing of individual and business rights and national sovereignty - that stretches back to before the starting of the US.

"So this is, a long, made complex, fraught process," Kortz added.

Could OpenAI have protected itself better from a distilling attack?

"They might have used technical steps to obstruct repetitive access to their site," Lemley stated. "But doing so would also hinder regular consumers."

He added: "I don't think they could, or should, have a valid legal claim against the browsing of uncopyrightable info from a public site."

Representatives for DeepSeek did not instantly respond to an ask for remark.

"We understand that groups in the PRC are actively working to use approaches, including what's called distillation, to attempt to duplicate innovative U.S. AI models," Rhianna Donaldson, an OpenAI spokesperson, informed BI in an emailed declaration.