The New York Times has initiated legal action against AI search startup Perplexity, alleging copyright infringement. This lawsuit marks the Times’ second such action against an artificial intelligence firm, as it joins other news organizations like the Chicago Tribune, which filed its own lawsuit against Perplexity this week.
In its complaint, the Times asserts that Perplexity offers commercial services that effectively replace the outlet’s content without obtaining authorization or providing compensation. This legal move occurs amidst ongoing negotiations between various publishers, including the Times, and AI companies. As the media landscape evolves, many are using litigation as a bargaining tool, aiming to compel these firms to establish formal licensing agreements that fairly compensate content creators while ensuring the sustainability of original journalism.
Perplexity previously attempted to address compensation concerns through its Publishers’ Program, established last year. This initiative provides participating media outlets—including Gannett, TIME, and the Los Angeles Times—with a share of advertising revenue. Additionally, in August, the company launched Comet Plus, distributing 80% of its $5 subscription fee to involved publishers. They have also secured a multi-year licensing agreement with Getty Images.
Graham James, a spokesperson for The Times, stated, “While we believe in the ethical and responsible use and development of AI, we firmly object to Perplexity’s unlicensed use of our content to develop and promote their products.” He further emphasized the importance of accountability for companies that do not recognize the value of original journalism.
The lawsuit criticizes Perplexity’s approach to handling user queries, as it retrieves and reformulates content from various websites, including the Times. The suit claims that Perplexity’s outputs often consist of near-verbatim reproductions or summaries of copyrighted materials, including those belonging to the Times. James highlighted that Perplexity’s technology permits it to extract content from behind paywalls, giving unauthorized access to non-subscribers.
Additionally, the lawsuit alleges that Perplexity’s search engine has generated inaccurate information attributed to the Times, potentially harming its brand image.
This legal action follows a cease and desist notice issued by the Times to Perplexity over a year ago, urging the startup to cease using its content unless a suitable agreement was reached. Despite multiple attempts to resolve the matter, the two parties have been unable to come to terms.
The Times’ legal battle is not limited to Perplexity. It is also pursuing claims against OpenAI and Microsoft, accusing them of training AI models using a significant number of its articles without compensation. OpenAI has countered, arguing that the utilization of publicly available information falls under “fair use,” while also raising its own allegations against the Times regarding manipulation of its AI systems.
As the legal landscape surrounding AI and copyright evolves, the Times’ lawsuit could contribute to further scrutiny of AI applications. Previous rulings in similar cases have established that the use of pirated content infringes on copyrights, as seen in a substantial settlement against Anthropic, another AI firm.
The mounting legal challenges for Perplexity are escalating, as several other media entities, including News Corp and others, have made similar claims. By seeking damages and demanding that Perplexity cease its use of the Times’ content, this legal action underscores the ongoing tensions between traditional media companies and emerging AI technologies.
While the Times advocates for appropriate partnerships with AI firms that respect journalism, it continues to navigate a complex and evolving digital landscape.
