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OpenAI Faces New Copyright Infringement Lawsuits

Highlights

  • OpenAI faces copyright infringement lawsuits over AI training data.

  • Startups like ProRata.ai explore revenue-sharing models to compensate creators.

  • Legal and ethical concerns persist despite new compensation approaches.

Kaan Demirel
Last updated: 3 September, 2024 - 9:27 pm 9:27 pm
Kaan Demirel 8 months ago
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Efforts to balance the advancement of artificial intelligence with the protection of intellectual property have intensified. Companies like OpenAI, which developed ChatGPT, have been accused of using online content without permission to train their AI models. This has led to legal challenges and has prompted some startups to explore revenue-sharing models as a potential solution.

Contents
Revenue-Sharing Models Gaining TractionChallenges and SkepticismFuture Prospects and Expansion

Earlier developments in AI training have already seen similar controversies, with companies facing backlash for using copyrighted content without consent. The new approaches aim to create a more sustainable ecosystem where content creators are adequately compensated. However, the effectiveness of these models in addressing ethical concerns remains a topic of debate among stakeholders.

Revenue-Sharing Models Gaining Traction

Perplexity AI and ProRata.ai are among the startups pioneering revenue-sharing mechanisms. Perplexity AI has introduced a program that pays publishers a share of ad revenue generated by search queries that use their content. ProRata.ai has developed an algorithm to assess the contribution of various sources to AI-generated outputs and distribute payments accordingly.

Challenges and Skepticism

This initiative aims to mitigate the risks of lawsuits and ensure that creators receive fair compensation. According to ProRata.ai’s co-founder and CEO, Bill Gross, “If you don’t share, then creativity is unsustainable. There’s no way for you to make a living.” While the model has received support from publishers such as The Atlantic and Fortune, its success also hinges on convincing major tech companies to adopt it.

ProRata.ai plans to launch an AI-powered search engine in October, priced at $19 per month. The revenue from this engine will be split, with 50% going to ProRata and the remaining 50% distributed among content creators. This model aims to become an industry standard, although larger tech companies currently do not share ad revenue directly with publishers.

Future Prospects and Expansion

The scope of ProRata’s model is not limited to text. The startup also plans to collaborate with music, video, and movie brands, as well as smaller, independent creators. This diversification aims to create a fairer ecosystem for all types of content creators. “A.I. is so amazing, but it needs to be fair to all parties,” Gross emphasized.

Overall, while revenue-sharing models offer a promising approach, they may not completely address the broader ethical concerns of using creators’ work without explicit permission. Legal experts suggest the need for amendments to copyright laws to better protect intellectual property in the age of AI.

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Kaan Demirel
By Kaan Demirel
Kaan Demirel is a 28-year-old gaming enthusiast residing in Ankara. After graduating from the Statistics department of METU, he completed his master's degree in computer science. Kaan has a particular interest in strategy and simulation games and spends his free time playing competitive games and continuously learning new things about technology and game development. He is also interested in electric vehicles and cyber security. He works as a content editor at NewsLinker, where he leverages his passion for technology and gaming.
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