Lejilex and the Crypto Freedom Alliance of Texas, a crypto nonprofit, have teamed up to introduce a complaint against the actions of the SEC towards actors in the digital asset industry in America. The complaint alleges that the SEC has no regulatory powers over these crypto companies, having usurped functions not given to it by […]
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Investors in the bankrupt cryptocurrency exchange Voyager Digital are suing the National Basketball Association (NBA), and New Jersey’s oldest law firm, McCarter & English. This emerging legal battle illustrates how even some of the largest and most reputable brands and companies can quickly become ensnared in controversy in an industry marred by a tangled web […]
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Sam Altman, CEO of ChatGPT maker OpenAI, arrives for a bipartisan Artificial Intelligence Insight Forum for all U.S. senators hosted by Senate Majority Leader Chuck Schumer at the U.S. Capitol in Washington, D.C., Sept. 13, 2023.
Craig Hudson | Reuters
A group of prominent U.S. authors, including Jonathan Franzen, John Grisham, George R.R. Martin and Jodi Picoult, has sued OpenAI over alleged copyright infringement in using their work to train ChatGPT.
The lawsuit, filed by the Authors Guild in Manhattan federal court on Tuesday, alleges that OpenAI “copied Plaintiffs’ works wholesale, without permission or consideration … then fed Plaintiffs’ copyrighted works into their ‘large language models’ or ‘LLMs,’ algorithms designed to output human-seeming text responses to users’ prompts and queries.”
The proposed class-action lawsuit is one of a handful of recent legal actions against companies behind popular generative artificial intelligence tools, including large language models and image-generation models. In July, two authors filed a similar lawsuit against OpenAI, alleging that their books were used to train the company’s chatbot without their consent.
Getty Images sued Stability AI in February, alleging that the company behind the viral text-to-image generator copied 12 million of Getty’s images for training data. In January, Stability AI, Midjourney and DeviantArt were hit with a class-action lawsuit over copyright claims in their AI image generators.
Microsoft, GitHub and OpenAI are involved in a proposed class-action lawsuit, filed in November, which alleges that the companies scraped licensed code to train their code generators. There are several other generative AI-related lawsuits currently out there.
“These algorithms are at the heart of Defendants’ massive commercial enterprise,” the Authors Guild’s filing states. “And at the heart of these algorithms is systematic theft on a mass scale.”
South Korean Bitcoin (BTC) lender Delio is reportedly preparing for an administrative lawsuit against regulators for the wrong interpretation of the law, leading to an investigation and a hefty fine against the crypto lending firm.
Delio said the allegations of fraud and embezzlement levied by the Financial Service Committee (FSC) are baseless, according to a report published in a local daily. The crypto lender claimed that the regulator implied the law unreasonably in a situation where there were no clear regulations for virtual asset deposit and management products.
The report revealed that the Financial Intelligence Unit (FIU) recommended the dismissal of Delio CEO Jeong Sang-ho through a sanctions announcement on Sept. 1. Delio claimed that this was a clear indication that the financial authorities were putting pressure on Delio to close down the business rather than giving it a chance to revive. The FIU also imposed a three-month business suspension on Delio and a fine of 1.83 billion Korean won ($1.34 million).
The firm also warned that the assets seized by regulators could put its operations in jeopardy.
Sang-ho said that these FIU sanctions leave a lot of room for unreasonable legal interpretation and arbitrary application, and such behavior by financial authorities could kill the domestic virtual asset industry.
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The major issue of conflict remains the interpretation of the existing laws, around whether a lending company that lends cash using virtual assets as collateral is considered a virtual asset business operator and whether the act of imposing a lock-up constitutes “storage” of virtual assets under the Special Financial Services Act.
Delio argued that it is unclear whether virtual asset deposits and management products are considered financial products under the current law. One of the lawyers for the firm noted that there are no provisions for virtual asset-related laws and regulations regarding the virtual asset management business.
The lawyer said that the FIU arbitrarily interpreted virtual asset deposits and management products as financial investment products and sanctioned them, which is the wrong interpretation of the law.
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