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Judge Stein lets the New York Times, Daily News and CIR copyright claims against OpenAI and Microsoft go forward, trims the DMCA counts, and dismisses unfair-competition claims
On April 4, 2025, Judge Sidney Stein ruled on the motions to dismiss in the three news cases that were then before him. He denied OpenAI's motion to dismiss direct infringement claims over copying more than three years before suit, applying the discovery rule and rejecting a sophisticated-plaintiff exception to it; denied both defendants' motions on contributory infringement, holding the complaints plausibly allege the defendants knew or should have known their products reproduce the articles; and kept the Daily News trademark dilution claims. He dismissed with prejudice the common-law unfair competition by misappropriation claims and CIR's abridgment claim. On the DMCA, he dismissed without prejudice the 1202(b)(1) claims against Microsoft in all three cases and against OpenAI in the Times case, and all 1202(b)(3) claims, finding the excerpted outputs in the complaints were not copies of substantial portions of the works; the 1202(b)(1) claims against OpenAI in the Daily News and CIR cases survived. The 43-page opinion became the framework for the OpenAI MDL news cases.
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