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Investing.com PH

Seattle Times, Newsday sue OpenAI and Microsoft over AI training

Context & Analysis

When major news outlets take legal action against AI firms, the issue is less about any single chatbot and more about whether copyrighted reporting can be used as raw material for machine learning. The core question is simple to state but difficult to resolve: if a company scrapes articles from websites to build an AI system, does that fall within copyright exceptions, or does it require permission and payment? Newsrooms depend on advertising, subscriptions, and licensing revenue. If their content can be absorbed into commercial models without compensation, the economics of journalism become harder to sustain, even when readers are not directly copying articles.

For Philippine businesses, the lesson is practical. Many companies are experimenting with AI for customer service, market research, product descriptions, and internal knowledge tools. If training data includes protected material from local media, blogs, or proprietary industry reports, firms may face copyright exposure later. This does not mean every use of AI is unsafe, but it raises the importance of procurement discipline: vendors should disclose what data they used, how models were trained, and whether licenses cover commercial deployment. For SMEs using off-the-shelf tools, the risk may be lower than for companies building custom models on scraped content, yet contracts still need clear IP warranties, indemnities, and restrictions on output that resembles source material.

Consumers also have an interest in this fight. AI systems trained on news can shape public understanding of politics, prices, disasters, and business regulation. If the underlying training is legally contested, businesses and media may spend more on licensing or defensive monitoring, costs that can eventually be passed through to customers. It may also push platforms toward more transparent data sources, which could improve accountability in a market where fake news and rumor-driven trading already affect sentiment.

The next thing to watch is how Philippine institutions interpret such global disputes. The Intellectual Property Office will remain central to copyright questions, while the National Privacy Commission may weigh in if personal data is involved. Courts are likely to look closely at whether AI use transforms content or merely substitutes for it. For local media and tech companies, that makes licensing agreements, documented consent, and clear AI governance not just legal hygiene but a competitive advantage.

Analysis by IJE Software — original commentary on the story above.

This is an excerpt. Read the full article at the original source:

Source: ph.investing.com

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