1 OpenAI has Little Legal Recourse against DeepSeek, Tech Law Experts Say
Angel Hartmann edited this page 2025-02-03 12:44:08 +00:00


OpenAI and the White House have actually accused DeepSeek of using ChatGPT to cheaply train its brand-new chatbot.
- Experts in tech law state OpenAI has little recourse under intellectual home and contract law.
- OpenAI's regards to usage might apply however are mainly unenforceable, they state.
This week, OpenAI and the White House implicated DeepSeek of something comparable to theft.

In a flurry of press statements, they said the Chinese upstart had actually bombarded OpenAI's chatbots with queries and hoovered up the resulting data trove to quickly and cheaply train a model that's now practically as good.

The Trump administration's leading AI czar said this training process, called "distilling," amounted to copyright theft. OpenAI, on the other hand, informed Business Insider and other outlets that it's examining whether "DeepSeek may have wrongly distilled our designs."

OpenAI is not saying whether the company plans to pursue legal action, instead guaranteeing what a representative called "aggressive, proactive countermeasures to protect our technology."

But could it? Could it take legal action against DeepSeek on "you stole our content" 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 positioned this question to specialists in technology law, who stated tough DeepSeek in the courts would be an uphill struggle for OpenAI now that the content-appropriation shoe is on the other foot.

OpenAI would have a difficult time showing a copyright or copyright claim, these lawyers stated.

"The question is whether ChatGPT outputs" - suggesting the responses it generates in response to inquiries - "are copyrightable at all," Mason Kortz of Harvard Law School said.

That's because it's uncertain whether the answers ChatGPT spits out certify as "imagination," he stated.

"There's a doctrine that states imaginative expression is copyrightable, but truths and concepts are not," Kortz, who teaches at Harvard's Cyberlaw Clinic, stated.

"There's a huge concern in copyright law right now about whether the outputs of a generative AI can ever constitute imaginative expression or if they are necessarily vulnerable facts," he included.

Could OpenAI roll those dice anyway and claim that its outputs are safeguarded?

That's not likely, the legal representatives said.

OpenAI is already on the record in The New york city Times' copyright case arguing that training AI is a permitted "reasonable use" exception to copyright protection.

If they do a 180 and inform DeepSeek that training is not a fair use, "that might return to type of bite them," Kortz said. "DeepSeek could state, 'Hey, weren't you simply saying that training is fair usage?'"

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

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

"But this still puts OpenAI in a quite predicament with regard to the line it's been toeing concerning reasonable use," he included.

A breach-of-contract claim is most likely

A breach-of-contract claim is much likelier than an IP-based lawsuit, though it features its own set of problems, stated Anupam Chander, who teaches technology law at Georgetown University.

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

"So perhaps that's the claim you may potentially 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 allowed to do under our contract."

There might be a hitch, Chander and Kortz said. OpenAI's regards to service need that many claims be through arbitration, grandtribunal.org not claims. There's an exception for claims "to stop unapproved usage or abuse of the Services or intellectual home violation or misappropriation."

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

"You should know that the fantastic scholar Mark Lemley and a coauthor argue that AI regards to use are likely unenforceable," Chander stated. He was describing a January 10 paper, "The Mirage of Expert System Regards To Use Restrictions," by Stanford Law's Mark A. Lemley and Peter Henderson of Princeton University's Center for Infotech Policy.

To date, "no model creator has actually attempted to enforce these terms with financial charges or injunctive relief," the paper says.

"This is likely for good reason: we think that the legal enforceability of these licenses is questionable," it adds. That remains in part due to the fact that model outputs "are largely not copyrightable" and since laws like the Digital Millennium Copyright Act and the Computer Fraud and Abuse Act "offer limited option," it says.

"I believe they are most likely unenforceable," Lemley told BI of OpenAI's terms of service, "since DeepSeek didn't take anything copyrighted by OpenAI and due to the fact that courts generally won't implement arrangements not to compete in the lack of an IP right that would prevent that competitors."

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

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

Here, OpenAI would be at the mercy of another very complicated area of law - the enforcement of foreign judgments and the balancing of individual and corporate rights and national sovereignty - that extends back to before the starting of the US.

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

Could OpenAI have safeguarded itself better from a distilling incursion?

"They could have used technical measures to block repeated access to their site," Lemley said. "But doing so would also hinder regular clients."

He added: "I do not believe they could, or should, have a valid legal claim against the searching of uncopyrightable info from a public website."

Representatives for DeepSeek did not immediately react to an ask for larsaluarna.se comment.

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