Dow Jones and New York Post File Lawsuit Against AI Startup Perplexity for Copyright Infringement
On October 21, 2024, Dow Jones and the New York Post, both subsidiaries of News Corp, filed a lawsuit against the AI startup Perplexity, alleging extensive copyright infringement.
The legal action was initiated in the U.S. District Court for the Southern District of New York, where the plaintiffs claim that Perplexity has unlawfully reproduced their copyrighted materials while diverting traffic and revenue away from their platforms.
Key Allegations
- Unauthorized Reproduction: The lawsuit contends that Perplexity's AI-driven service allows users to access news and information without linking back to the original sources, effectively bypassing the need to visit the publishers' websites.
- Failure to Respond: Prior to the lawsuit, Dow Jones and the New York Post had sent a notification to Perplexity in July 2024 regarding legal concerns over its content usage, but they allege that Perplexity did not engage in discussions for a potential licensing agreement.
- Damages Sought: The plaintiffs are seeking statutory damages of up to $150,000 for each instance of copyright infringement, along with actual damages and profits derived from unauthorized use of their content.
Corporate Statements
Robert Thomson, CEO of News Corp, emphasized the detrimental impact of Perplexity's practices on journalists and publishers. He stated that Perplexity's actions represent a "content kleptocracy," where the company allegedly duplicates copyrighted material without compensation while presenting it as an alternative to original sources.
Broader Context
This lawsuit is part of a growing trend where media companies are taking legal action against AI firms for similar copyright issues. Recently, the New York Times also issued a cease-and-desist letter to Perplexity over unauthorized content use and has been involved in lawsuits against other AI companies like OpenAI and Microsoft for similar reasons.
As this case unfolds, it highlights ongoing tensions between traditional media outlets and emerging AI technologies that utilize copyrighted materials for content generation without direct compensation or attribution.
