Tech companies are betting that they will become so huge that copyright holders will make all efforts to reach a reasonable licensing agreement with them, because of their scale and access to VC money. Until now, they have been proven right. Who looses? Everybody else.
"OpenAI has lost a key discovery battle over internal communications related to the startup deleting two huge datasets of pirated books, a development that further tilts the scales in favor of authors suing the company.
To rewind, authors and publishers have gained access to Slack messages between OpenAI’s employees discussing the erasure of the datasets, named “books 1 and books 2.” But the court held off on whether plaintiffs should get other communications that the company argued were protected by attorney-client privilege.
In a controversial decision that was appealed by OpenAI on Wednesday, U.S. District Judge Ona Wang found that OpenAI must hand over documents revealing the company’s motivations for deleting the datasets. OpenAI’s in-house legal team will be deposed.
At stake: Billions of dollars and, potentially, OpenAI’s defense in the case. The communications could help prove what’s known as “willful” infringement, which triggers significantly higher damages of $150,000 per work. And if it’s found that the company destroyed the evidence with potential litigation in mind, the court could direct juries in later trials to assume it would’ve been unfavorable for OpenAI.
The discovery ruling bolsters what’s increasingly looking like a winning argument over the practice of pirating books from shadow libraries. That theory has changed over the course of AI litigation. At first, lawyers for the authors directly connected the piracy to OpenAI’s training of its models under a single umbrella. But later, they separated the theories..."
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