The Wall Street Journal and the New York Post have filed a lawsuit against Perplexity AI, accusing the Silicon Valley startup of massive copyright infringement and trademark violations. The lawsuit was submitted to a federal court in New York on Monday.
Perplexity AI, known for its AI-powered answer engine, is often touted as a potential disruptor to traditional search engines like Google. Unlike classic search engines, Perplexity provides immediate, ready-made answers on its webpage, eliminating the need for users to click through to source websites. It also offers up-to-date answers with links to source materials, enabling users to verify information.
The plaintiffs allege that Perplexity AI has been illegally copying and reproducing copyrighted content from their publications to power its AI-driven platform. The lawsuit describes this practice as “massive freeriding” on protected content, claiming it diverts readers and revenue away from the Wall Street Journal and the New York Post.
“Unlike the business model of a traditional internet search engine, Perplexity’s business model does not drive business toward content creators. To the contrary, it usurps content creators’ monetization opportunities for itself,” the lawsuit states.
Perplexity AI, backed by notable investors including Amazon founder Jeff Bezos and tech giant Nvidia, has not yet responded to requests for comment. The lawsuit also accuses the company of damaging the publishers’ brands by attributing false information to their publications.
The publishers are seeking injunctive relief, statutory damages of up to $150,000 per infringement, and the destruction of any databases containing their copyrighted works. This move follows similar actions by other major media outlets; The New York Times previously sent a cease and desist letter to Perplexity AI, which is often a precursor to legal action. Additionally, the Times filed a lawsuit against OpenAI last year, accusing the ChatGPT creator of using copyrighted material without permission to train its AI models.
While News Corp, the owner of the Wall Street Journal and the New York Post, has signed a content agreement with OpenAI, the lawsuit alleges that Perplexity AI has ignored requests to establish such partnerships.
Reference(s):
WSJ, New York Post sue Perplexity AI for copyright infringement
cgtn.com
