NEWS AND PUBLICATIONS

Brazil’s First Generative AI Copyright Dispute: Folha de S.Paulo v. OpenAI

by , , | Aug 27, 2025 | Articles

Folha da Manhã S.A. (publisher of Folha de S.Paulo) filed a lawsuit in São Paulo against OpenAI OpCo LLC, alleging that the company used its journalistic content without authorization to train and operate ChatGPT.

According to the complaint, OpenAI’s use of Folha’s archive would:

Infringe copyright, since Brazilian law grants authors and publishers exclusive rights of reproduction and does not recognize a broad “fair use” exception
Constitute unfair competition, as ChatGPT may substitute or undermine the value of Folha’s subscription and advertising model; and
Represent a form of parasitic use, where AI developers rely on professional journalistic work without licensing or remuneration.
Folha is seeking an injunction to block the use of its content in Brazil, in addition to damages (material and moral) to be quantified later, and the destruction of AI models trained with its content.

Follow the timeline of this copyright injuction:

Aug 22, 2025

Folha da Manhã S.A. requested a preliminary injunctive relief for OpenAI to immediately cease using its content for training and to stop making its content available to users. Before ruling, the judge has given OpenAI 72 hours to comment on the request, which is a common procedure in highly complex cases.

Aug 25, 2025

OpenAI presented its statement. OpenAI claims that the legal requirements for granting the preliminary injunction have not been met. We highlight the following:

  • There is no urgency since the alleged damages could be compensated later;
  • The request is broad, disproportionate, and difficult to be executed. OpenAI also arguments that granting the order could cause public harm, since; the service is provided to 35.8 million Brazilian users;
  • The discussion is highly controversial and technically and legally complex. There is no specific regulation or uniform case law to support Folha’s request; and
  • Folha is already employing technical mechanisms to prevent OpenAI crawlers from accessing the site.
    OpenAI also requested that the proceedings be held under secrecy.

Folha da Manhã S.A. also presented a response, refuting OpenAI’s arguments. Folha argues that the technical mechanisms were insufficient to prevent access by OpenAI crawlers and mentions the bill currently under discussion – regarding the regulation of AI in Brazil (Bill 2338/23).

Aug 26, 2025

The judge has not yet ruled on the preliminary injunction request.

Key Context

Compliance consequences: In Brazil, ignoring injunctions can lead to escalating daily fines and, in some cases, suspension of digital services in the country. Courts have applied these measures against technology platforms in the past.

Why Brazil matters:

  • Limited “fair use” defense available to AI developers.
  • Courts often presume irreparable harm in IP disputes.
  • The proposed AI Act (Bill No. 2338/2023) will add statutory rights to transparency, remuneration, and opt-out, giving content owners even stronger tools.
  • This case is the first in Brazil to target a generative AI company for alleged unauthorized scraping and use of copyrighted works. It highlights Brazil’s growing role as a jurisdiction where rights holders can pursue high-impact strategies against global AI developers.

Our AI & IP Disputes Team continues to track these developments closely and will provide timely updates as the case progresses.

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