News Corp., the parent company of prominent publications such as the Wall Street Journal and the New York Post, has initiated legal action against Perplexity, an AI-powered search startup. The suit stems from allegations of copyright infringement, as News Corp. accuses Perplexity of utilizing its articles without authorization to train its large language models for a search service. This legal move reflects a growing concern in the media industry over the unauthorized use of journalistic content by AI companies, which the plaintiffs contend undermines their business model and diverts web traffic away from their publications.
The lawsuit asserts that Perplexity’s AI-driven service does more than merely summarize their articles; it often presents comprehensive excerpts or full texts, particularly for users who subscribe to its premium offering. This practice, according to the complaint, not only infringes on copyright but also allows Perplexity to “freeride” on the hard work of journalists, who invest significant resources into producing original news content. An instance highlighted in the lawsuit mentions that the AI provided the complete text of a New York Post article upon user request, underscoring the extent of the alleged misuse.
In addition to copyright issues, the publications express concern over the potential reputational damage that Perplexity’s handling of their content may incur. They argue that the AI may generate misinformation or attribute erroneous quotes to their works, further endangering their credibility. An example provided is a claim that the AI attributed quotes related to the Wall Street Journal’s coverage of U.S. military assistance to Ukraine that were never part of the original publication, raising alarms about the integrity of the information disseminated through AI.
Prior attempts by News Corp. to resolve the matter amicably through a July letter went unanswered by Perplexity, prompting the decision to escalate the issue through legal channels. This case is part of a broader trend, where various news outlets have challenged AI entities. For instance, several publications, including the New York Times and Condé Nast, have taken legal action against OpenAI, claiming unauthorized use of their content for model training. Notably, Condé Nast had previously sent a cease-and-desist letter to Perplexity over similar concerns, reinforcing the widespread unease among publishers regarding AI technologies.
To remedy the situation, News Corp. is seeking a court injunction to restrain Perplexity from utilizing its publications’ content without express permission. Moreover, they are demanding substantial financial compensation, with claims of damages potentially reaching up to $150,000 for each instance of alleged copyright violation. This legal battle reveals the tension between the evolving landscape of AI technologies and traditional media industries as they grapple with issues of content ownership and monetization in an increasingly digital world.
As this case unfolds, the possibility of Perplexity negotiating a content agreement with News Corp. remains uncertain. Comparatively, OpenAI had earlier reached a licensing deal with News Corp. enabling its chatbot to access News Corp.’s digital content for training purposes, a partnership valued at approximately $250 million over five years. With this precedent in mind, the outcome of the lawsuit may not only influence the specific relationship between News Corp. and Perplexity but may also set important legal precedents shaping the future of media and AI collaboration, as other news organizations closely watch how these disputes are resolved.
