1 OpenAI has Little Legal Recourse against DeepSeek, Tech Law Experts Say
Abdul Dieter edited this page 3 months ago


OpenAI and the White House have accused DeepSeek of utilizing ChatGPT to cheaply train its brand-new chatbot.
- Experts in tech law state OpenAI has little recourse under copyright and agreement law.
- OpenAI's terms of use might apply however are mainly unenforceable, they state.
This week, OpenAI and the White House accused DeepSeek of something comparable to theft.

In a flurry of press declarations, they said the Chinese upstart had actually bombarded OpenAI's chatbots with queries and hoovered up the resulting information trove to quickly and inexpensively train a design that's now almost as great.

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

OpenAI is not stating whether the company prepares to pursue legal action, instead guaranteeing what a representative termed "aggressive, proactive countermeasures to secure our technology."

But could it? Could it sue DeepSeek on "you took our material" premises, just like 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 presented this question to professionals in innovation law, who said challenging DeepSeek in the courts would be an uphill battle for OpenAI now that the content-appropriation shoe is on the other foot.

OpenAI would have a difficult time proving a copyright or copyright claim, these legal representatives said.

"The concern is whether ChatGPT outputs" - implying the responses it produces in reaction to questions - "are copyrightable at all," Mason Kortz of Harvard Law School stated.

That's due to the fact that it's whether the responses ChatGPT spits out certify as "creativity," he stated.

"There's a doctrine that says creative expression is copyrightable, however facts and ideas are not," Kortz, who teaches at Harvard's Cyberlaw Clinic, said.

"There's a big question in intellectual home law today about whether the outputs of a generative AI can ever constitute innovative expression or if they are always vulnerable realities," he added.

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

That's not likely, the attorneys said.

OpenAI is currently on the record in The New york city Times' copyright case arguing that training AI is an allowable "fair usage" exception to copyright defense.

If they do a 180 and inform DeepSeek that training is not a reasonable use, "that may return to kind of bite them," Kortz stated. "DeepSeek could say, 'Hey, weren't you simply saying that training is reasonable usage?'"

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

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

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

A breach-of-contract suit is most likely

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

Related stories

The regards to service for Big Tech chatbots like those established by OpenAI and Anthropic forbid using their content as training fodder for a competing AI model.

"So maybe that's the lawsuit you may perhaps bring - a contract-based claim, not an IP-based claim," Chander said.

"Not, 'You copied something from me,' however that you gained from my model to do something that you were not enabled to do under our agreement."

There might be a drawback, Chander and Kortz stated. OpenAI's regards to service require that many claims be resolved through arbitration, wiki.eqoarevival.com not claims. There's an exception for setiathome.berkeley.edu claims "to stop unauthorized usage or abuse of the Services or intellectual residential or commercial property infringement or misappropriation."

There's a larger hitch, however, experts said.

"You need to know that the dazzling scholar Mark Lemley and a coauthor argue that AI terms of use are likely unenforceable," Chander said. He was describing a January 10 paper, "The Mirage of Expert System 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 model developer has in fact tried to enforce these terms with monetary charges or injunctive relief," the paper states.

"This is likely for good factor: we think that the legal enforceability of these licenses is doubtful," it includes. That's in part because design outputs "are largely not copyrightable" and since laws like the Digital Millennium Copyright Act and the Computer Fraud and Abuse Act "offer restricted option," it says.

"I think they are likely unenforceable," Lemley informed BI of OpenAI's terms of service, "since DeepSeek didn't take anything copyrighted by OpenAI and because courts generally won't impose agreements not to compete in the lack of an IP right that would avoid that competition."

Lawsuits in between celebrations in different countries, each with its own legal and enforcement systems, are always difficult, Kortz stated.

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

Here, OpenAI would be at the mercy of another incredibly complicated location of law - the enforcement of foreign judgments and the balancing of specific and business rights and nationwide sovereignty - that extends back to before the starting of the US.

"So this is, a long, made complex, laden procedure," Kortz added.

Could OpenAI have protected itself better from a distilling incursion?

"They could have utilized technical measures to block repetitive access to their site," Lemley said. "But doing so would also hinder typical customers."

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

Representatives for DeepSeek did not right away respond to a request for remark.

"We know that groups in the PRC are actively working to use methods, including what's understood as distillation, to try to duplicate innovative U.S. AI models," Rhianna Donaldson, an OpenAI spokesperson, informed BI in an emailed statement.