The New York Times Sues Perplexity Over Alleged AI Copyright Infringement

The New York Times filed suit Friday against AI search startup Perplexity for copyright infringement, its second lawsuit against an AI company. The Times joins several media outlets suing Perplexity, including the Chicago Tribune, which also filed suit this week. The Times suit claims that Perplexity provides commercial products to its own users that substitute for the outlet, without permission or remuneration. According to the lawsuit, Perplexity's products, such as its search engine, allegedly infringe on The Times' copyrights by reproducing and distributing its content without authorization. The lawsuit also claims that Perplexity's actions are causing financial harm to The Times and other media outlets. "We are taking this action to protect our intellectual property and to ensure that we are fairly compensated for the value we create," said a spokesperson for The New York Times. This lawsuit is part of a larger trend in the publishing industry, where media outlets are using lawsuits as leverage in negotiations with AI companies to formally license content and compensate creators. Several publishers, including The Times, have been negotiating deals with AI firms, recognizing that the use of artificial intelligence in content creation is becoming increasingly prevalent. "We are committed to working with AI companies to find mutually beneficial solutions, but we will not compromise on our intellectual property rights," said the spokesperson. Perplexity has attempted to address compensation demands by launching a Publishers Program last year, which offers participating outlets a share of ad revenue. In August, the company launched Comet Plus, a subscription-based service that allocates 80% of its monthly fee to participating publishers. Perplexity has also recently struck a multi-year licensing deal with an unnamed publisher. While the terms of the deal were not disclosed, it is seen as a significant development in the ongoing negotiations between publishers and AI companies. The lawsuit against Perplexity is the second filed by The New York Times in recent months. In July, the company sued AI firm Anthropic for copyright infringement. The Chicago Tribune's lawsuit against Perplexity is also seen as a significant development in the publishing industry, as it highlights the growing concern among media outlets about the use of artificial intelligence in content creation. The current status of the lawsuit is that it has been filed in a federal court in New York, and Perplexity has yet to respond to the allegations. The outcome of the lawsuit is likely to have significant implications for the publishing industry, as it could set a precedent for how AI companies use and compensate for copyrighted content.