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OpenAI has Little Legal Recourse against DeepSeek, Tech Law Experts Say

by Ruthie Cochran (2025-02-09)

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OpenAI and the White House have actually accused DeepSeek of using ChatGPT to inexpensively train its new chatbot.

- Experts in tech law state OpenAI has little recourse under copyright and contract law.

- OpenAI's terms of usage may use however are largely unenforceable, they state.


Today, OpenAI and the White House accused DeepSeek of something akin 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 cheaply train a design that's now nearly as excellent.


The Trump administration's top AI czar said this training process, called "distilling," amounted to intellectual home theft. OpenAI, on the other hand, told Business Insider and surgiteams.com other outlets that it's investigating whether "DeepSeek might have inappropriately distilled our designs."


OpenAI is not saying whether the company prepares to pursue legal action, rather assuring what a spokesperson called "aggressive, proactive countermeasures to safeguard our technology."

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But could it? Could it take legal action against DeepSeek on "you took our content" premises, much like the premises OpenAI was itself took legal action against on in a continuous copyright claim submitted in 2023 by The New York Times and other news outlets?


BI posed this concern to specialists in innovation law, who said tough 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 tough time showing a copyright or copyright claim, these lawyers stated.

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


That's since it's unclear whether the answers ChatGPT spits out qualify as "creativity," he said.


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


"There's a substantial concern in copyright law today about whether the outputs of a generative AI can ever constitute creative expression or if they are always unprotected realities," he added.


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


That's not likely, the lawyers said.


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


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


There may be a difference between the Times and DeepSeek cases, gratisafhalen.be Kortz added.


"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 said to have done, Kortz stated.


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


A breach-of-contract claim is more likely

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A breach-of-contract suit is much likelier than an IP-based suit, though it comes with its own set of problems, stated Anupam Chander, who teaches innovation law at Georgetown University.


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The regards to service for lespoetesbizarres.free.fr 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 possibly bring - a contract-based claim, not an IP-based claim," Chander said.

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


There may be a drawback, Chander and Kortz said. OpenAI's regards to service require that most claims be resolved through arbitration, not lawsuits. There's an exception for lawsuits "to stop unapproved usage or abuse of the Services or copyright infringement or misappropriation."


There's a larger hitch, wiki.asexuality.org however, specialists stated.


"You must understand that the dazzling scholar Mark Lemley and a coauthor argue that AI regards to usage are likely unenforceable," Chander stated. 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.

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To date, "no design developer has really attempted to enforce these terms with financial charges or injunctive relief," the paper says.


"This is likely for great reason: we believe that the legal enforceability of these licenses is doubtful," it adds. That remains in part since design outputs "are mainly not copyrightable" and since laws like the Digital Millennium Copyright Act and the Computer Fraud and Abuse Act "offer minimal recourse," it says.


"I think they are most likely unenforceable," Lemley told BI of OpenAI's regards to service, "since DeepSeek didn't take anything copyrighted by OpenAI and due to the fact that courts usually won't implement arrangements not to complete in the absence of an IP right that would avoid that competitors."


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

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Even if OpenAI cleared all the above hurdles 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 come down to the Chinese legal system," he stated.


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


"So this is, a long, made complex, filled procedure," Kortz included.

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Could OpenAI have safeguarded itself much better from a distilling attack?


"They could have used technical measures to obstruct repeated access to their website," Lemley said. "But doing so would also hinder normal consumers."


He included: "I do not think they could, or should, have a legitimate legal claim against the searching of uncopyrightable information from a public site."


Representatives for DeepSeek did not instantly react to a request for remark.


"We understand that groups in the PRC are actively working to use approaches, including what's referred to as distillation, to attempt to duplicate innovative U.S. AI models," Rhianna Donaldson, an OpenAI spokesperson, informed BI in an emailed declaration.



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