AI disrupts news industry as publishers fight for control

The News Media Alliance, a major publishing industry lobbying group, is preparing legal action against a prominent AI company over alleged copyright infringement of publisher content used to train AI models.

The core issue: The News Media Alliance (NMA), representing major publishers like Gannett, Condé Nast, and others, plans to file a complaint alleging unauthorized use of publisher content in AI model training.

• The upcoming legal action will demonstrate instances where AI models allegedly copied text without proper attribution or licensing
• The specific AI company targeted remains undisclosed, though existing licensing deals between NMA members and OpenAI suggest it may be a different entity
• Not all NMA members are participating in the planned lawsuit

Industry context: Publishers are increasingly taking legal action against AI companies while simultaneously pursuing licensing agreements with them.

• OpenAI has secured deals with numerous publishers including Financial Times, Condé Nast, and News Corp
• The New York Times’ ongoing lawsuit against OpenAI is viewed as a potential precedent-setting case
• Both Perplexity and Meta have established licensing arrangements with select news publishers

Internal dynamics: The AI controversy has energized the NMA while exposing tensions between member organizations.

• The organization has become more vocal in challenging tech companies that potentially divert traffic and revenue from publishers
• During a strategy call, Gannett’s CEO criticized Axios’s partnership with OpenAI in local markets
• Disagreements emerged over which news outlet should receive the exclusive announcement of the planned legal action

Strategic considerations: The legal landscape around AI and copyright remains unclear, driving publishers to seek judicial clarity.

• Publishers argue that Large Language Models (AI systems that process and generate human-like text) have been trained on their content without adequate compensation
• A similar lawsuit has been filed by Canadian publishers, including CBC, against OpenAI
• The Press Gazette maintains a tracking system for media-related AI lawsuits and partnerships

Industry implications: The outcome of this legal action could significantly impact how AI companies access and use published content.

• The case may establish important precedents for content licensing in AI training
• This action represents a broader push by traditional media to maintain control over their intellectual property in the AI era
• The tension between pursuing legal action and securing licensing deals highlights the complex relationship between publishers and AI companies

Reading between the lines: While publishers are publicly challenging AI companies through legal channels, many are simultaneously negotiating private licensing deals, suggesting a nuanced strategy of both confrontation and cooperation in adapting to AI’s growing influence in media.