AI in Courtrooms and Boardrooms

Two major updates this week show how the legal landscape around AI is evolving fast — and not always in the tech companies' favor. OpenAI just lost a key discovery battle in its lawsuit with authors, with a federal judge ordering the company to hand over internal messages about deleting large datasets of pirated books. That could open the door to hundreds of millions — or even billions — in copyright damages. Meanwhile, Warner Music is taking a different route by ending its legal fight with AI music platform Suno and announcing a formal partnership instead. The deal marks a turning point in how the music industry might coexist with generative AI tools — provided there’s proper licensing and compensation.

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ChaseLawyers Newsletter
December 02, 2025

Hi there,

This week’s update captures both the legal risks and strategic opportunities AI is bringing to entertainment.

In federal court, authors have secured a major win against OpenAI. The judge ruled that the company must hand over internal Slack communications about its deletion of two massive datasets containing pirated books. These messages could support claims of “willful” copyright infringement — which means much steeper penalties. OpenAI now faces a tough discovery process that could reshape the direction of the case.

In the music world, Warner Music Group is closing the loop on its legal battle with AI platform Suno — not with a courtroom victory, but with a signed partnership. As part of the deal, Suno will roll out licensed AI models that compensate creators and restrict how music can be downloaded or distributed. The move follows similar deals with Udio and signals a shift from confrontation to collaboration — at least with platforms willing to play by the rules.

OpenAI Ordered to Hand Over Internal Messages in Copyright Case

OpenAI has been dealt a serious blow in its legal battle with authors and publishers. A federal judge has ordered the company to turn over Slack messages and other internal documents revealing why it deleted two datasets — “Books1” and “Books2” — filled with pirated works. Plaintiffs argue the deletion was part of a cover-up that could help prove “willful” infringement, opening the door to higher damages. The ruling is a major turning point in AI copyright litigation and sets the stage for more aggressive discovery into how training datasets were acquired and handled.

Warner Music Ends Lawsuit and Strikes Licensing Deal With Suno

Warner Music Group is officially partnering with Suno, the AI music platform it had previously sued for copyright infringement. The surprise announcement comes just weeks after Warner settled with rival platform Udio. As part of the deal, Suno will phase out its old models and launch new licensed systems that compensate artists and limit downloads. Only paying users will be able to download music, and even they will face caps. While Sony and Universal remain locked in litigation, Warner’s decision to pivot toward collaboration suggests the industry may be open to AI — if licensing and consent come first.

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INDUSTRY NEWS

OpenAI Loses Key Discovery Battle as It Cedes Ground to Authors in AI Lawsuits

A federal judge says OpenAI can't claim privilege after disclosing its reasons for deleting datasets. This could dramatically increase copyright exposure.

Warner Music Settles Legal War With Suno In Landmark AI Partnership

The two companies will collaborate on new licensed AI models, marking the first official partnership between a major label and an AI platform.

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