Dow Jones and New York Post Sue AI Company Perplexity for Copyright Violations: Demand Millions in Damages

Dow Jones and New York Post Sue AI Firm Perplexity Over Copyright Infringement Claims

Dow Jones, the parent company of The Wall Street Journal, and the New York Post have filed a lawsuit against artificial intelligence startup Perplexity.ai, alleging unauthorized use of their copyrighted content. The lawsuit, filed Monday, accuses the AI-powered search engine of repurposing articles and other copyrighted materials without permission, infringing on intellectual property rights.

Perplexity Accused of Copyright Abuse

Perplexity operates as an AI-based research and conversational search engine that retrieves and processes information from various sources, including copyrighted articles, for user queries. According to the lawsuit, Perplexity has been reproducing content from Dow Jones and the New York Post, sometimes using full articles or excerpts verbatim without proper credit or backlinks to the original sources.

The suit further claims that Perplexity’s responses sometimes incorporate fabricated information, creating inaccuracies in what appears to be authoritative content. Additionally, the platform allows users to bypass visiting original sources, promoting its ability to "skip the links."

News Corp CEO Robert Thomson Speaks Out

Robert Thomson, CEO of News Corp, which owns Dow Jones, expressed strong criticism of Perplexity’s actions. In a statement, he labeled the AI company’s behavior as "abuse of intellectual property" that harms journalists, writers, and publishers.

“The perplexing Perplexity has willfully copied copious amounts of copyrighted material without compensation, and shamelessly presents repurposed material as a direct substitute for the original source. Perplexity proudly states that users can ‘skip the links’ – apparently, Perplexity wants to skip the check,” said Thomson.

Thomson noted that News Corp had previously reached a licensing agreement with OpenAI, an AI platform that uses copyrighted material with permission. He indicated that News Corp prefers collaboration but is willing to take legal action when necessary.

Licensing Attempts Ignored, Legal Action Pursued

The lawsuit highlights that in early 2024, Dow Jones and the New York Post reached out to Perplexity in hopes of negotiating a licensing deal. However, their concerns were ignored, prompting them to file the lawsuit.

“We applaud principled companies like OpenAI, which understand that integrity and creativity are essential if we are to realize the potential of artificial intelligence,” Thomson added. “Perplexity is not the only AI company abusing intellectual property, and it will not be the last that we pursue with vigor. We have made clear that we would rather woo than sue, but we must challenge the content kleptocracy.”

Legal Demands and Potential Penalties

The plaintiffs are seeking a court order to stop Perplexity from using their content without authorization. They also demand that Perplexity destroy any database or index containing unauthorized materials. Additionally, the lawsuit seeks damages of up to $150,000 for each instance of infringement, along with profits earned from the misuse of the content.

The timing of the lawsuit comes as Perplexity is reportedly in the process of raising $500 million at an $8 billion valuation, according to the Wall Street Journal.

AI Copyright Issues Becoming a Growing Concern

As AI technology rapidly evolves, disputes over the use of copyrighted content have become increasingly common. While many publishers, including News Corp, have opted to license their materials to AI companies like OpenAI, others have raised concerns over unauthorized usage. The outcome of this lawsuit could set a precedent for future cases involving AI and intellectual property.

Key Takeaways:

Who: Dow Jones and New York Post vs. Perplexity.ai
What: Lawsuit over copyright infringement and unauthorized use of content
Why: Perplexity allegedly uses copyrighted articles without permission and adds fabricated text.
What’s at Stake: Plaintiffs seek damages up to $150,000 per infringement and an injunction to stop Perplexity from using copyrighted materials.

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