AI startup Perplexity faces lawsuits from major publishers for allegedly using copyrighted content without permission
The New York Times has filed a lawsuit against AI startup Perplexity, accusing the company of copyright infringement by scraping and republishing millions of the newspaper’s articles, videos, and podcasts. The complaint, filed on Friday, claims that Perplexity’s AI search engine and chatbot unlawfully repackages the Times’ content to power its database.
“In doing so, Perplexity has violated the protections that intellectual property law provides for the Times’s expressive, original journalism,” the newspaper stated. The complaint cites violations across news, opinion, culture, business, cooking, games, shopping recommendations, and sports.
Five Civil Counts and Widespread Publisher Concerns
Represented by attorney Steven Lieberman of Rothwell, Figg, Ernst & Manbeck, the Times’ lawsuit lists five civil counts, including copyright infringement, trademark infringement, and trademark dilution. The complaint claims that Perplexity continued scraping content even after cease-and-desist letters demanded an immediate halt.
Perplexity, valued at $20 billion, allegedly misquotes the Times and produces inaccurate outputs, known in AI circles as “hallucinations.” One example cited involves the Wirecutter product Boppy Lounger. While the product was recalled for safety reasons, Perplexity falsely claimed Wirecutter recommended it—a claim the Times says is entirely fabricated.
Other Publishers Join the Fight
The legal action against Perplexity is not isolated. On the same day, Rothwell Figg filed a similar five-count copyright infringement suit on behalf of the Chicago Tribune. Additional lawsuits are pending from Dow Jones, New York Post, Encyclopaedia Britannica, and Merriam-Webster in the U.S. District Court for the Southern District of New York.
Perplexity’s Response and Investor Backing
Perplexity’s head of communications, Jesse Dwyer, dismissed the lawsuits as part of a long history of publishers challenging new technology. “Publishers have been suing new tech companies for a hundred years, starting with radio, TV, the internet, social media and now AI,” he said.
Despite the legal battles, Perplexity has raised tens of millions from high-profile investors, including Amazon founder Jeff Bezos, who supported the startup during its January 2024 funding round at a valuation of over $500 million. Recently, the company reportedly secured investor commitments for $200 million at a $20 billion valuation, positioning it as a potential rival to Google in AI search.
Conclusion
Perplexity’s legal challenges highlight the growing tension between AI innovation and intellectual property rights. As lawsuits from major publishers mount, the case will likely shape the future of AI-driven content. Follow for updates on this evolving story, share it with peers.
