Microsoft and OpenAI employees internally acknowledged for years that AI tools trained on news articles would likely replace publishers, leading to a "doom loop," with a Microsoft director calling it "an astonishing theft of unprecedented proportions" and potentially the "largest theft of labor in human history," documents unsealed Thursday show.
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SATURDAY, SEPTEMBER 19, 2026 Law360 iOS App Law360 Android App Follow Law360 on Facebook Follow Law360 on LinkedIn Follow Law360 on Twitter

TOP NEWS

'Astonishing Theft': Microsoft, OpenAI Staff Reckoned With AI

By Dorothy Atkins

Microsoft and OpenAI employees internally acknowledged for years that AI tools trained on news articles would likely replace publishers, leading to a "doom loop," with a Microsoft director calling it "an astonishing theft of unprecedented proportions" and potentially the "largest theft of labor in human history," documents unsealed Thursday show.

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Ex-FCC Leaders Call ABC Probe Attack On Free Speech

By Christopher Cole

A bipartisan group of former top officials at the Federal Communications Commission on Thursday urged a D.C. federal court to put a halt to the agency's ongoing probe of ABC's Disney-owned stations, calling it an attack on free speech.

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Art Institute Wins Appeal In Schiele Nazi-Loot Dispute

By Corey Rothauser

A New York state appeals court Thursday vacated a warrant and orders requiring the Art Institute of Chicago to surrender an Egon Schiele painting to the heirs of Jewish art collector Fritz Grünbaum, finding a criminal-law procedure for returning stolen property could not be used to resolve a sharply contested ownership dispute without full civil proceedings.

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Talk Of Ex-NFL Star's Penis Size Not Actionable, Judge Says

By Bonnie Eslinger

Former NFL football player Matt Kalil can't sue his ex-wife, Haley Kalil, on claims she improperly shared private information about him publicly, a Minnesota federal judge ruled Thursday, saying her comments about the size of his penis are a legitimate matter of public concern.

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Local Publishers Say OpenAI, Microsoft Stole Their News

By Craig Clough

More than two dozen regional, local, trade and specialty publishers have sued OpenAI Inc. and Microsoft Corp. in New York federal court, alleging the companies copied hundreds of thousands of copyrighted articles without permission to train products including ChatGPT and Microsoft Copilot.

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Exonerated NJ Power Broker Sues Philly Inquirer For $100M

By George Woolston

New Jersey power broker George E. Norcross III alleged in a $100 million defamation suit filed Thursday in Pennsylvania state court that the Garden State's failed racketeering case against him was built upon fabricated claims and notes that an editor at the Philadelphia Inquirer funneled to prosecutors.

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Amazon Sued For Use Of 'Drunk Shakespeare' In 'Off Campus'

By Gina Kim

Producers of the live comedy theatrical productions "Drunk Shakespeare" sued Amazon in Florida federal court Thursday, alleging that an episode of Amazon's streaming college romantic drama "Off Campus" infringed their trademark by copying aspects of the productions and using the "Drunk Shakespeare" name.  

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LEGAL ETHICS

Weaponization Fund Plaintiffs Say Discovery Ruling Was Right

By Jared Foretek

Plaintiffs suing over the Trump administration's once-proposed "anti-weaponization fund" are telling a Virginia federal judge to reject the U.S. Department of Justice's objections to a magistrate judge's discovery order, accusing the administration of stonewalling their requests and urging prompt discovery production.

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INTELLECTUAL PROPERTY

Industry Groups, IP Attys Back High Court PTAB Denials Case

By Theresa Schliep

The bar association for the Patent Trial and Appeal Board, a group of intellectual property law attorneys and others have urged the U.S. Supreme Court to scrutinize the discretionary denial policies of current U.S. Patent and Trademark Office leadership.

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Skycom Engineer Says Huawei Was His Real Boss In Iran

By Stewart Bishop

A Tehran-born engineer who has since become a U.S. citizen on Thursday testified that he worked for Huawei on projects for the Iranian government, despite technically being employed by what prosecutors say was a thinly veiled subsidiary that the Chinese telecommunications company used to evade U.S. sanctions.

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PRIVACY & CONSUMER PROTECTION

LinkedIn Secures Ban On Sweeping Data Scraping Operations

By Allison Grande

A California federal judge finalized an agreement that permanently bars a pair of software companies accused of running "industrial-scale" data scraping mills that extracted information from millions of LinkedIn profiles from accessing the professional networking platform and requires them to destroy any data they've obtained. 

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Meta's Slow Content Reviews Not Biggest Concern, Jury Told

By Cara Salvatore

Meta's longtime content policy czar testified Thursday in New Mexico's data privacy trial that leaving up some violating posts for days while they underwent extra review was "less of a concern" than the mistake of pulling down an acceptable post by a high-profile account.

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COMPETITION

DOJ Touts 'Substantial' Ad Tech Fix, Leaves Room For Appeal

By Bryan Koenig

The U.S. Department of Justice walked a fine line between hailing a Virginia federal judge's newly unsealed decision ordering Google to open up its advertising placement technology dominance, and leaving open the possibility of appealing the judge's accompanying rejection of its request for a breakup.

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SpaceXAI, Apple Must Show Texas Judge Antitrust Deal Terms

By Dorothy Atkins

A Texas federal judge has ordered Elon Musk's companies and Apple Inc. to provide him with a copy of their recent settlement for in-camera review after OpenAI Inc. demanded to look over the agreement and argued its terms may undermine the antitrust allegations SpaceXAI LLC is still pursuing against OpenAI.

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SECURITIES & WHITE COLLAR

Watchdogs Sue Trump Over Early Truth Social Post Access

By Jared Foretek

Two government watchdog groups are suing President Donald Trump and other high-ranking officials, claiming that their sale of early access to Trump's policy-focused Truth Social posts violates the First and Fifth amendments and only serves to enrich the president and his social media platform.

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Doximity Hit With Investor's Suit Over Ad Strategy Claims

By Sydney Price

Medical professional networking platform operator Doximity Inc. was hit with a shareholder's proposed class action accusing it of concealing it was losing market share to its competitors and that its website did not rely on the "deep engagement" advertising strategy it had previously touted.

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TELECOMMUNICATIONS

AT&T Seeks To End Biz Landline Service In 34 States, DC

By Nadia Dreid

AT&T is continuing its quest to end legacy copper line service across the United States, this time asking the Federal Communications Commission for permission to end traditional phone service for businesses in 34 states and Washington, D.C.

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Groups Seek 4.4 GHz Revamp, But Clash On Exclusive Use

By Christopher Cole

Top wireless carriers and shared-spectrum advocates issued reports this week saying the government needs to set the 4 gigahertz band on a path toward industry use, but are at odds on whether to set aside the airwaves for full-power exclusive licenses.

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2nd Circ. Pauses Nielsen Order In Cumulus Tying Case

By Nadia Dreid

The Second Circuit has put on hold a preliminary injunction ordering the Nielsen Co. to offer its national ratings data separate from its local offerings after the company argued that the lower court changed the terms of the injunction after the Second Circuit approved it the first time.

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Brief

Cruz, Markey Urge Senate To Pass Bill On AM Radio In Cars

By Aneeta Mathur-Ashton

Senate Commerce Committee Chairman Ted Cruz, R-Texas, and Sen. Edward J. Markey, D-Mass., have called on the Senate to advance the AM Radio for Every Vehicle Act following its passage in the House of Representatives.

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COMMERCIAL CONTRACTS

NFL Agent Blocked From Defending Poaching Suit, 3rd Circ. Told

By P.J. D'Annunzio

Counsel for NFL agent Todd France told a Third Circuit panel Thursday that his client was deprived of the opportunity to fight allegations that he poached another agent's client, asking the court to vacate an $810,846 arbitration award against him.

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BANKRUPTCY

TV Azteca Files Ch. 15 Seeking Recognition Of Mexican Reorg

By Alex Wittenberg

Spanish-language television company TV Azteca has filed for Chapter 15 relief in New York bankruptcy court, seeking U.S. recognition of its Mexican restructuring and an order protecting it from litigation in New York that it says threatens its creditors.

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EXPERT ANALYSIS

Meta Deal Highlights Advisory Jury Issues, Litigation Risk

The $17 billion settlement of youth safety claims brought against Meta offers lessons for all consumer-facing companies because the court made the rare move of empaneling an advisory jury and the case was built on what the company learned from its own studies, says Mark Morgan at McCarter & English.

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LEGAL INDUSTRY

Senior Lawyers Survey: Tell Us About Your Career

How are senior lawyers adapting to evolving career paths and emerging technologies? Share your perspective in this five-minute survey.

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Analysis

Attys 'Itching' To Join Congressional Probes Of Trump Admin

By Phillip Bantz

Efforts to recruit high-powered lawyers to Capitol Hill to potentially lead congressional committee probes into the various dealings of President Donald Trump's administration are gaining momentum as Democrats push to retake control of Congress in the quickly approaching midterm elections.

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Ex-DOJ Chief Lambastes 'Abuses Of Power' In Goldstein Case

By Jeff Overley

The U.S. Department of Justice constantly made false statements in its criminal case against famed appellate advocate Tom Goldstein, and his convictions must be erased because "prosecutorial misconduct pervaded every stage of the proceedings," a former DOJ prosecutor told the Fourth Circuit.

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Roundup

Taxation With Representation: Davis Polk, Latham, Sullivan

By Zak Kostro

In this week's Taxation With Representation, a group backed by Michael Dell's family office and Sequence Holdings acquires a majority interest in The Baldwin Group, May Mobility merges with a blank check company, and Infineon Technologies sells its memory chip business to Winbond Electronics.

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Ex-Wis. Judge Keeps License Amid ICE Conviction Appeal

By Ryan Boysen

The ex-Wisconsin judge convicted of obstructing an ICE arrest will remain an attorney in good standing while she appeals, after the Supreme Court of Wisconsin declined to suspend her law license.

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Richards Layton Litigator Selected For Chancery Seat In Del.

By Rose Krebs

A Richards Layton & Finger PA attorney has been nominated by Delaware Gov. Matt Meyer to serve on the bench of the nationally important Chancery Court, a venue that adjudicates some of the biggest corporate law cases.

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Judge Questions Whether 'Lawfare' Fund Fight Is Really Moot

By Jared Foretek

A Virginia federal judge seemed unlikely to toss a challenge to the Trump administration's nixed "Anti-Weaponization Fund" and tax audit immunity for the Trump family Friday, saying she worries the fund could be revived in a different form down the road.

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Chief US District Judge In SC To Take Senior Status Oct. 1

By Courtney Bublé

Chief U.S. District Judge Timothy Cain of the District of South Carolina has informed the president that he will be taking semiretired status on Oct. 1, according to an update posted Friday by the federal judiciary.

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Roundup

GC Cheat Sheet: The Hottest Corporate News Of The Week

By Michele Gorman

Starbucks settled a high-profile discrimination suit with Florida over its diversity, equity and inclusion policies, agreeing not to use race- or sex-based goals in hiring and promoting. And the SEC floated changing how publicly traded companies seek shareholder input, including promising to end one pathway for shareholders to place their proposals on corporate ballots. These are among the stories in corporate legal news you may have missed in the past week.

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Reed Smith Defends Docs Production In Ex-Atty's Bias Suit

By Jake Maher

Reed Smith LLP urged a New Jersey court on Thursday to reject an "impulsive" motion from a former attorney suing it for gender discrimination seeking to strike its answer and affirmative defenses.

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Law360's Legal Lions Of The Week

By Kevin Penton

Schemery Zicolello leads this week's edition of Law360 Legal Lions, after a Third Circuit panel ruled that police cannot conduct warrantless strip searches outside of jails or prisons absent consent or an emergency.

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In Case You Missed It: Hottest Firms And Stories On Law360

For those who missed out, here's a look back at the law firms, stories and expert analyses that generated the most buzz on Law360 last week.

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COMPANIES IN TODAY'S NEWS

AT&T Inc.

Amazon.com Inc.

Anthropic PBC

Apple Inc.

Art Institute of Chicago

Association of Corporate Counsel

Axon Enterprise Inc.

Broadcom Inc.

CTIA

Clearing House Payments Co. LLC

Cooper Health System

Corporate Legal Operations Consortium

Cumulus Media Inc.

Dell Technologies Inc.

Democracy Forward Foundation

EE Ltd.

Futurewei Technologies Inc.

G Squared

Google LLC

HSBC Holdings PLC

Helicopters Inc.

Huawei Technologies Co. Ltd.

Infineon Technologies AG

KnowBe4 Inc.

Lambda Legal Defense & Educational Fund

LinkedIn Corp.

Major League Baseball Inc.

Meta Platforms Inc.

Metro-Goldwyn-Mayer Studios Inc.

Microsoft Corp.

Minnesota Vikings Football LLC

National Football League Players Association

National Treasury Employees Union

New York Daily News Co.

New York University

Nielsen Holdings PLC

Nike Inc.

Ohio State University

OpenAI OpCo LLC

Otsuka America Inc.

Philadelphia Consolidated Holding Corp.

Protect Democracy Project Inc.

Spectrum Management Holding Co.

Stanford University

Starbucks Corp.

State Bar of California

Taiwan Semiconductor Manufacturing Co. Ltd.

Target Corp.

Tesla Inc.

The Baldwin Group

The Bank of New York Mellon Corp.

The Detroit Lions Inc.

The New York Times Co.

The Philadelphia Inquirer LLC

The Seattle Times

The Software & Information Industry Association

TotalEnergies SE

Toyota Motor Corp.

TripAdvisor Inc.

Verizon Communications Inc.

Walmart Inc.

X Corp.

Ziff Davis Holdings Inc.

LAW FIRMS IN TODAY'S NEWS

Akin Gump

Axinn

Barnes & Thornburg

Bartlit Beck

Bernstein Litowitz

Bowman & Brooke

Brown Pruitt

Buzgon Davis

Cantey Hanger

Carmagnola & Ritardi

Clement & Murphy

Cooley LLP

Covington & Burling

Cravath Swaine

DLA Piper

Davis Polk

DiCello Levitt

Donohue Brown

Dowd Bennett

Dunn Isaacson Rhee

Eckert Seamans

Fabyanske Westra

Faegre Drinker

Fenwick & West

Fish & Richardson

Freshfields

Gerstein Harrow

Gibson Dunn

Greenberg Traurig

Hahn Loeser

Haynes Boone

Hogan Lovells

Holland & Knight

Jenner & Block

Kasowitz LLP

Keker Van Nest & Peters

Kellogg Hansen

Kelly Hart

Kilpatrick Townsend

Kirkland & Ellis

Lamb McErlane

Latham & Watkins

Lewis Brisbois

Loevy & Loevy

Lowenstein Sandler

Lynn Pinker

MJB Law Firm

McCarter & English

McDermott Will & Schulte

McGinn Montoya

Miller & Chevalier

Morgan Lewis

Morris Nichols

Morrison & Foerster

Munger Tolles

Orrick Herrington

Paul Hastings

Polk Kabat

Quinn Emanuel

Reed Smith

Richards Layton

Rosen Saba

Rothwell Figg

Schemery Zicolello

Shutts & Bowen

Sidley Austin

Sills Cummis

Skadden Arps

Steptoe LLP

Sterlington PLLC

Sterne Kessler

Stoel Rives

Sullivan & Cromwell

Susman Godfrey

The Office of Craig C. Reilly

Tollefson Bradley

Vedder Price

Venable LLP

Wachtell Lipton

Weil Gotshal

Wiley Rein

Wilkinson Stekloff

Williams & Connolly

GOVERNMENT AGENCIES IN TODAY'S NEWS

Blue Lake Rancheria

California Public Utilities Commission

Delaware Court of Chancery

Equal Employment Opportunity Commission

Executive Office of the President

Federal Bureau of Investigation

Federal Communications Commission

Federal Trade Commission

Homeland Security Investigations

Internal Revenue Service

National Telecommunications and Information Administration

New Jersey Attorney General's Office

New Mexico Attorney General's Office

New York Attorney General's Office

New York County District Attorney's Office

New York Supreme Court, New York County

Patent Trial and Appeal Board

U.S. Attorney's Office for the District of Maryland

U.S. Attorney's Office for the District of South Carolina

U.S. Attorney's Office for the Eastern District of New York

U.S. Attorney's Office for the Eastern District of Virginia

U.S. Bankruptcy Court for the Southern District of New York

U.S. Court of Appeals for the Fourth Circuit

U.S. Court of Appeals for the Second Circuit

U.S. Court of Appeals for the Seventh Circuit

U.S. Court of Appeals for the Third Circuit

U.S. Department of Commerce

U.S. Department of Energy

U.S. Department of Justice

U.S. Department of Labor

U.S. District Court for the District of Columbia

U.S. District Court for the District of Maryland

U.S. District Court for the District of Minnesota

U.S. District Court for the District of South Carolina

U.S. District Court for the Eastern District of New York

U.S. District Court for the Eastern District of Virginia

U.S. District Court for the Northern District of California

U.S. District Court for the Northern District of Texas

U.S. District Court for the Southern District of Florida

U.S. District Court for the Southern District of New York

U.S. Immigration and Customs Enforcement

U.S. Patent and Trademark Office

U.S. Securities and Exchange Commission

U.S. Supreme Court

Virginia State Corporation Commission

Wisconsin Supreme Court