"Naver Faces Lawsuit for Unauthorized Use of Articles by AI... 'Content Terms' Emerge as Key Issue"

Three Major Broadcasters File Copyright Lawsuit Against Naver
Claim Unauthorized Use of Articles for AI Training
Naver Responds: "Usage Was in Accordance With Terms of Service"

When the three terrestrial broadcasters filed a lawsuit against Naver claiming that it used articles for artificial intelligence (AI) learning without permission, Naver countered by stating that "the use of news articles for AI learning was conducted in accordance with the terms of service agreement." The legal dispute between the broadcasters and Naver over the copyright of content used for AI learning is expected to hinge on the interpretation of the terms of service.

According to the IT industry on the 21st, Naver cited the clause on "Naver's rights and obligations" specified in the terms of service (Content Partnership Terms, Article 8, Paragraph 3) as the basis for AI learning at that time. According to this clause, Naver may use information directly, jointly, or by outsourcing to a third party for service improvement and research for new service development. However, if the process involves outsourcing to a third party, prior consent from the provider must be obtained.

A photo of Kim Yuwon, CEO of Naver Cloud, introducing HyperClovaX. Provided by Naver

A Naver official stated, "Since the revision of the terms in June 2023, we have not used news articles for AI learning without the consent of the media companies." He added, "This is fundamentally different from overseas big tech companies like Google, whose generative AI learned news without terms or standards." When asked whether any media companies agreed to the use of articles for AI learning after the terms revision, the official avoided a clear answer, saying, "AI learning data is not disclosed in principle," and "Regarding future plans for the use of media articles in AI learning, we will go through social discussions and listen to the opinions of media companies."

Earlier, the three terrestrial broadcasters KBS, MBC, and SBS filed a lawsuit against Naver claiming damages and a ban on learning for copyright infringement and violation of the Unfair Competition Prevention Act. The reason was that Naver’s generative AI models, ‘HyperCLOVA’ and ‘HyperCLOVA X,’ used the broadcasters’ articles without permission for learning. The core issue is that news is being used without compensation for training large language models (LLMs) of AI.

The Korea Broadcasting Association holds the position that Naver’s claim is problematic. A representative of the Association’s AI Task Force (TF) pointed out, "Content partnership mainly means that broadcasters’ news can be posted on Naver’s site," and "It does not mean that news content can be used for Naver’s AI learning at all." He criticized, "Nevertheless, Naver’s claim that using articles for AI learning based on the content partnership terms is not problematic is an issue." He added, "Starting with Naver, we will take a tough stance by sequentially filing lawsuits against big tech companies that have used news data without permission."