Substack co-founder Hamish McKenzie recently highlighted a major media shakeup: legacy institutions are losing their grip as independent creators and digital-first approaches gain traction. He argues the future belongs to those who build human connections, not institutional walls. This shift, McKenzie believes, favors talent and community, potentially creating a more diverse media landscape where even small, independent voices, like ours, can thrive on platforms we control.
The legal arena heats up
Simultaneously, a critical legal battle over AI and copyright is consolidating. In April 2025, the U.S. Judicial Panel on Multidistrict Litigation bundled 12 lawsuits against OpenAI and Microsoft into a single proceeding. This copyright mega-case, now centralized in the Southern District of New York (SDNY) under Judge Sidney H. Stein, includes high-profile plaintiffs facing off against the AI giants.
At heart, these lawsuits question whether OpenAI and Microsoft illegally used vast amounts of copyrighted material – news articles, books, etc. – to train AI models like ChatGPT without permission or payment. Creators argue this isn't just copying; it's building competing products on the backs of their work, sometimes reproducing it nearly word-for-word.
Key Claims:
AI trained on protected works without licenses.
AI outputs substitute for, and harm, the market for original content.
AI regurgitates copyrighted text verbatim.
OpenAI's defense rests heavily on the concept of "fair use," claiming that training on public data is transformative, and legal precedent supports this approach.
Meet the combatants
Plaintiffs: A broad coalition including major publishers (The New York Times, Daily News LP, The Intercept, CIR), author advocacy groups (The Authors Guild), and numerous individual authors (like Paul Tremblay, Sarah Silverman, Michael Chabon).
Defendants: OpenAI (ChatGPT's developer) and Microsoft (its primary partner and investor).
What's next in SDNY?
With the cases consolidated, expect coordinated discovery efforts as plaintiffs dig into OpenAI's training data. OpenAI and Microsoft will likely push their fair use argument hard. Judge Stein, who previously allowed key NYT claims to proceed, noted the alleged copying seems fundamental to the AI's function, suggesting he's taking the allegations seriously.
This isn't just about big companies and big tech; the outcome directly impacts independent creators. The court's decisions could fundamentally alter:
Content Value: Will AI developers have to pay for training data?
Copyright Law: How does "fair use" apply in the age of generative AI?
Business Models: Can content-driven businesses, especially small independent ones, remain viable if their work fuels competing AI products for free?
McKenzie’s vision of a creator-centric media future might gain steam or hit a major roadblock depending on how Judge Stein rules. For anyone making a living (or trying to) from their words and ideas, this consolidated case is more than just legal news – it’s a fight over the future value of creativity itself.
This is the first I've seen of this lawsuit - thanks for sharing this! This affects so many things. I'm sure we will all be watching.
Your article brings hope to those of us fortunate enough to experience Pen2Profit via Substack. Thank you.