DOJ Sides with OpenAI: Why the Justice Department Declares AI Training on Copyrighted Works Fair Use in NYT Lawsuit

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by Albert SchaperUpdated: Sep 3, 2026
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DOJ Sides with OpenAI: Why the Justice Department Declares AI Training on Copyrighted Works Fair Use in NYT Lawsuit

The US Department of Justice (DOJ) has formally supported OpenAI and Microsoft in the New York Times copyright infringement lawsuit, filing a statement of interest that argues training large language models (LLMs) on copyrighted material qualifies as fair use. This intervention in Manhattan federal court is a pivotal development in a case that could set a precedent for AI and intellectual property law. For broader context, explore our AI News. For broader context, explore our Top 100 AI Tools.

The DOJ's filing contends that the New York Times' efforts to narrow the established fair-use doctrine for LLM training are inconsistent with fundamental copyright principles. The department warns that imposing broad copyright liability on AI training would effectively make such development impermissible without extensive licensing, potentially stifling innovation in the rapidly evolving AI industry.

Distinguishing AI Training from Output

A core tenet of the DOJ's argument is the crucial distinction between the act of training an AI model and the content it subsequently generates. The filing emphasizes that copying data during the training phase of an LLM is not equivalent to public distribution. Furthermore, the DOJ asserts that the outputs produced by these models often lack substantial similarity to the original copyrighted works they were trained on.

The department's brief highlights the significant nature of LLM training, arguing that it is "extraordinarily significant." It also points out that "human beings create original works using LLMs," suggesting that the AI acts as a tool for new creation rather than merely replicating existing content.

Challenging the US Copyright Office's Stance

Notably, the DOJ's statement directly challenges a report from the US Copyright Office that previously rejected a blanket fair-use defense for AI training. The filing explicitly states that former Register Shira Perlmutter, who was reportedly fired by the Trump administration, holds no binding authority on the interpretation of copyright law. This direct confrontation underscores the differing views within government bodies regarding AI's legal landscape.

Implications for the AI Industry and Creators

The outcome of the New York Times v. OpenAI/Microsoft case carries immense weight for the entire AI industry. A victory for OpenAI and Microsoft on the fair-use argument would remove a substantial legal hurdle concerning the data supply necessary for training advanced AI models. This would likely accelerate development and reduce the immediate pressure for widespread licensing agreements.

Conversely, a loss for the AI companies would likely push the industry towards more restrictive licensing regimes, potentially increasing development costs and slowing innovation. This scenario could also empower content creators and publishers to demand significant compensation for the use of their works in AI training.

Graham James, a spokesperson for the New York Times, criticized the administration's position, stating that it is "siding with a handful of trillion-dollar AI companies at the expense of the countless American creators whose work they stole." Similarly, Authors Guild CEO Mary Rasenberger has voiced concerns, highlighting the potential impact on creators' livelihoods.

Why This Matters Now

This legal battle is not just about one lawsuit; it represents a pivotal moment in defining the legal framework for artificial intelligence. The DOJ's intervention signals a strong governmental stance that could influence how courts interpret copyright law in the context of AI development. For developers, this could mean continued access to vast datasets for training, while for creators, it raises critical questions about compensation and control over their intellectual property in the age of AI.

The case, filed in December 2023, is being closely watched by companies like Meta and Anthropic, as its resolution could set precedents for numerous other pending AI copyright lawsuits. The decision by Judge Sidney H. Stein will undoubtedly shape the trajectory of AI innovation and content creation for years to come.

Key Takeaways

  • The US Department of Justice supports OpenAI's fair use defense in the NYT copyright lawsuit.
  • The DOJ distinguishes between AI training (not public distribution) and AI output (often not substantially similar).
  • The filing directly challenges the US Copyright Office's previous rejection of blanket fair use for AI training.
  • A fair-use win would significantly reduce legal obstacles for AI data acquisition.
  • The case is a bellwether for numerous other AI copyright lawsuits.

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About the Author

Albert Schaper avatar

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Albert Schaper

Albert Schaper is a co-founder of Best-AI.org. He focuses on product strategy, AI adoption, practical tool selection, and educational content that helps users compare AI products with clearer context.

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