The Shoestring Joined Copyright Lawsuit Against AI Giants

The local news publication alleges Microsoft and OpenAI used their content to train AI models without authorization.

Updated on Sept. 21, 2026 in Artificial Intelligence

Isometric editorial illustration showing metal printing blocks being moved by a mechanical arm, representing the extraction of intellectual property. — The Shoestring has joined a copyright lawsuit against Microsoft and OpenAI, alleging that AI giants used millions of words from local news websites to train language models. AI Illustration. Upload story photo >

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The Shoestring has filed a copyright infringement lawsuit against Microsoft and OpenAI, joining a group of 160 news publications. The suit alleges the companies utilized millions of words from their websites to train ChatGPT and Copilot, depriving local outlets of visibility and potential donor support.

Why it matters

The legal action highlights growing tensions between local media organizations and technology firms over AI model training. Publishers argue that AI-generated digests undermine their business models by failing to direct traffic to original reporting.

The Shoestring, which launched in 2017, currently averages 15,600 monthly page views and 10,600 unique visitors. The legal challenge centers on the alleged ingestion of millions of copyrighted words used to train large language models.

The players

The Shoestring

This is an online-only news publication based in Northampton that covers Franklin, Hampshire, and Hampden counties.

Microsoft

This is a multinational technology corporation that develops the Copilot artificial intelligence system.

OpenAI

This is an artificial intelligence research organization that created the ChatGPT language model.

Matthew J. Platkin

He is the attorney representing the plaintiffs in the current copyright infringement litigation.

The details

Plaintiffs claim that AI-driven search results generate summaries that replace the need for users to visit original news sites. OpenAI has defended its practices, characterizing the use of the material as fair use under existing copyright law.

The Shoestring began its coverage of western Massachusetts counties in 2017.
A separate coalition of 400 publishers filed a similar copyright lawsuit in June 2026.
The Shoestring lawsuit against Microsoft and OpenAI was filed between September 14 and 20, 2026.
Microsoft issued a statement regarding the litigation on September 21, 2026.

The Tech Race

This litigation follows the pattern established by the June 2026 coalition lawsuit of 400 publishers. It signals a broader industry shift as smaller media organizations challenge the data acquisition practices of major AI developers.

Readers may see changes in how AI-powered search engines present news summaries or attribute sources in the future. The outcome could dictate whether local news outlets maintain the digital traffic necessary to sustain their operations.

The takeaway

The case highlights the ongoing struggle to define fair use in the age of generative AI. Readers who value local journalism should monitor how these legal battles reshape the accessibility of online news content.