fair use

The New York Times is suing OpenAI and Microsoft, claiming the companies’ artificial intelligence systems were illegally trained on copyrighted articles from the news outlet. But can our current intellectual property laws stand up to rapidly developing AI technology? We’ll get into it. And, we’ll hear what Federal Reserve Chair Jerome Powell wants to see more of before cutting interest rates. Plus, Treasury Secretary Janet Yellen on the first time she smoked pot in college.

Here’s everything we talked about today:

• • “OpenAI Says New York Times Lawsuit Against It Is ‘Without Merit’” from The New York Times

• • “The economy and ethics of AI training data” from Marketplace

• • “Fed Signals Cuts Are Possible but Not Imminent as It Holds Rates Steady” from The Wall Street Journal

• • “NASA’s Ingenuity Mars Helicopter Ends Its Mission” from The New York Times

• • “‘Wait Wait’ for January 27, 2024: With Not My Job guest Treasury Secretary Janet Yellen” from NPR

Join us tomorrow for Economics on Tap! The YouTube livestream starts at 3:30 p.m. Pacific time, 6:30 p.m. Eastern. We’ll have news, drinks, a game and more.

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Today’s show:

Cecilia joins Jason for an in-depth discussion about the New York Times versus OpenAI case, delving into the intricacies of fair use and analyzing the Fair Use Test (6:07), examining the legal complexities surrounding data scraping for Large Language Models (28:21), exploring possible ramifications of this legal confrontation between these titans (40:06), and more!

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Timestamps:

(0:00) Cecilia Joins Jason

(2:44) Cecilia’s Background in Law

(3:44) Jumping into the case of NY Times vs OpenAI.

(6:07) Exploring Fair Use legal tests

(11:57) MEV - Get $30,000 off your first three months at http://www.mev.com/twist

(13:50) The case of Roy Orbison vs Two Live Crew and the music industry’s rules on fair use.

(19:04) Picking apart the defense of attribution.

(22:22) Northwest Registered Agent - Get a 60% discount on your next LLC at http://www.northwestregisteredagent.com/twist

(24:43) Fair Use Test: Factors two and three

(28:21) Legal challenges in data scraping for LLMs

(32:40) Paintbrush - Visit http://www.getpaintbrush.com to see if you qualify for a $50K startup loan in less than 2 minutes

(34:19) The fourth and final factor in the Fair Use Test.

(40:06) Potential outcomes of NY Times vs OpenAI case

(47:04) Google vs Java and legal discussions on digital platforms

(51:49) Jason shares a possible solution to this case and how the subscription wall could change things.

(57:54) Cecilia’s Grinch images on X

(1:02:22) Legal viewpoint regarding commercial vs non-commercial use.

(1:04:14) Summarizing where all this is going with the NY Times and OpenAI trial.

(1:12:18) Reviewing the market-based solution to this case.

* Check out GC AI: https://getgc.ai

Website: ceciliaziniti.com

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Check out Cecilia’s Maven Course here: https://maven.com/ceciliaz

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Thanks to our partners:

(11:57) MEV - Get $30,000 off your first three months at http://www.mev.com/twist

(22:22) Northwest Registered Agent - Get a 60% discount on your next LLC athttp://www.northwestregisteredagent.com/twist

(32:40) Paintbrush - Visit http://www.getpaintbrush.com to see if you qualify for a $50K startup loan in less than 2 minutes

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Follow Cecilia

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Great 2023 interviews: Steve Huffman, Brian Chesky, Aaron Levie, Sophia Amoruso, Reid Hoffman, Frank Slootman, Billy McFarland

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Today music sampling is a common practice, especially in electronic or hip-hop music. But how does it work? After all, other artists made the original music, and most of them would presumably like to be paid. Tune in to this classic episode to learn more about music sampling.

See omnystudio.com/listener for privacy information.

Today’s show:

Wilson Sonsini partner Adam Shevell joins Jason to discuss gaining access to datasets (1:10), fair use in copyright cases (6:29), and more!

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Time stamps: (00:00) Wilson Sonsini partner Adam Shevell joins Jason (1:10) Gaining access to datasets, avoiding copyright infringement, and why IP is protected (6:29) The concept of fair use and when it applies (11:26) What new founders should pay attention to (14:59) The Github case (17:42) Proper strategy for getting permission (22:56) How startups get crushed with legal bills (23:32) The Andy Warhol supreme court case * Check out Wilson Sonsini: ⁠https://www.wsgr.com *

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A few days ago, the Supreme Court tried to answer a question that has long bedeviled the world of art: When is borrowing from an earlier artist an act of inspiration, and when is it theft? 

Adam Liptak, who covers the court for The Times, explains a case that could change how art is made.

Guest: Adam Liptak, who covers the United States Supreme Court for The New York Times.

Background reading: 

• The Supreme Court justices considered whether the artist Andy Warhol was free to use elements of a rock photographer’s portrait of the musician Prince.
• The case could change the future of Western art — and, in a sense, its history, too.

For more information on today’s episode, visit nytimes.com/thedaily. Transcripts of each episode will be made available by the next workday.