The complaint accuses Naver of using news content from media outlets without authorization for its AI development. (Image courtesy of Korea Bizwire)
SEOUL, Jan. 2 (Korea Bizwire) – In a significant development highlighting the rising legal challenges in the age of artificial intelligence, the Korea Newspaper Association has filed a formal complaint with the Fair Trade Commission against Naver, South Korea’s leading web portal.
The complaint accuses Naver of using news content from media outlets without authorization for its AI development. This action echoes a similar lawsuit recently initiated by the New York Times against OpenAI, the developer of ChatGPT, and Microsoft, setting a precedent in the burgeoning conflict between traditional media and technology companies.
The Korea Newspaper Association’s complaint, filed on December 28, alleges that Naver has been employing news content in the development of its generative AI technology, HyperclovaX, without compensating the sources or disclosing the extent of its usage.
This accusation has intensified the debate over intellectual property rights as tech companies increasingly intersect with traditional media domains.
Historically, Naver operated under a policy that necessitated consent from news providers before their content could be repurposed for new service development. However, a recent amendment to this policy has stirred controversy, as it allows Naver to use these materials without explicit permission.
The association has condemned this policy change as a unilateral decision, representing an unfair contractual practice and calling for government intervention to address the imbalance.
In response to these developments, the association has put forward several demands. These include ensuring proper compensation for news content used in training Naver’s AI and demanding transparency in the use and extent of news data. The association’s stance is clear: “It is essential for the government to recognize and correct the unfairness in current practices to facilitate fair and transparent negotiations.”
This situation in South Korea is not isolated, as it parallels the lawsuit filed by the New York Times against OpenAI and Microsoft.
In this landmark case, the New York Times accused ChatGPT of utilizing its extensive archive of articles and columns without proper authorization, marking a significant confrontation between a leading global media outlet and tech industry giants over copyright issues.
Further amplifying these concerns, Korean newspapers such as the Chosun Ilbo and the Kyunghyang Shinmun have voiced their disapproval. In a recent editorial, the Chosun Ilbo criticized Naver for distributing news content irresponsibly, while a column in the Kyunghyang Shinmun’s column highlighted the need for urgent legal and systemic changes to address these unfair practices.
Naver’s response to these allegations has been notably vague. At a recent Q&A session during the company’s ‘DAN 23′ event, CEO Choi Soo-yeon avoided a direct answer when asked about compensating for the news content used in AI training, alluding to the complex nature of an issue that is increasingly becoming a contentious point in the global tech community.
Kevin Lee (kevinlee@koreabizwire.com)
