Ontario court keeps OpenAI copyright suit by Toronto Star alive

Ontario's Court of Appeal ruled Friday that a copyright lawsuit filed by a coalition of Canadian media organizations, including the Toronto Star, against OpenAI can proceed in Ontario, the outlet reported. The court dismissed OpenAI's argument that its lack of a physical presence in Ontario meant the case should instead be heard in the United States.

The lawsuit alleges OpenAI illegally used news articles to train ChatGPT and is profiting unjustly as a result. OpenAI had sought to overturn a prior ruling by Superior Court Justice Jessica Kimmel, who found the case "sufficiently connected to Ontario" based on three OpenAI-affiliated entities — OpenAI OpCo, LLC, OpenAI, LLC, and OpenAI, Inc. — doing business in the province.

Writing for the unanimous three-judge panel, Justice Bradley Miller found Kimmel did not err, noting that at least some of the affiliated companies had made contractual arrangements in Ontario, advertised to users there, or licensed their tools to customers directly or through third parties. Lawyer Sana Halwani of Lenczner Slaght LLP, which represented the media organizations, said the decision means digital businesses that earn money from Canadian content and users "must answer to Canadian law in Canadian courts." The firm said in a statement that it looks forward to having the claims "decided on their merits by a Canadian court."