News Corp Takes Legal Action Against Perplexity Over Scraped Content

News Corp’s Dow Jones and the New York Post have initiated legal action against the AI startup Perplexity, alleging a widespread practice they refer to as “content kleptocracy.” The lawsuit, filed in New York on Monday, accuses Perplexity of committing copyright violations on a significant scale by replicating and misrepresenting original content produced by others.

According to the complaint, Perplexity’s AI “answer engine” allegedly duplicates a wide array of copyrighted materials, including news articles, analysis, and opinion pieces, as part of its internal database. The lawsuit claims that the startup utilizes this copyrighted content to generate responses to user inquiries, effectively acting as a substitute for established news and information websites. News Corp contends that Perplexity promotes the reliability of its answers to the extent that users are encouraged to “Skip the Links” to original sources, relying solely on Perplexity for their news and analysis. This approach, the lawsuit argues, not only undermines the original content creators but also threatens News Corp’s revenue by diverting engagement from their platforms to Perplexity.

The grievances raised by News Corp echo concerns previously voiced by various news organizations regarding Perplexity’s methods. In recent months, several publications, including Forbes and The New York Times, have called attention to instances where Perplexity appears to closely replicate their content. Just last week, The New York Times sent a cease-and-desist letter to Perplexity in response to similar concerns.

In defense, Perplexity characterizes its web scraping activities as data collection aimed not at including this material in its AI training but rather at creating an index for its models to reference when responding to user questions. The company maintains that it is not infringing copyright but is instead providing a service that helps users find information more efficiently.

This lawsuit underscores the ongoing tension within the rapidly evolving AI landscape, where copyright law is struggling to keep pace with technological advancements. The unprecedented scale at which large-scale AI agents and scrapers operate raises complex legal questions that current copyright regulations may not adequately address. Several other lawsuits concerning copyright infringement are underway, but none have yet reached a resolution. Each claimant likely hopes their case will set a significant precedent in the battle over AI’s use of existing content.

In a statement regarding the lawsuit, News Corp CEO Robert Thomson praised companies like OpenAI for recognizing the importance of integrity and creativity in realizing the full potential of artificial intelligence. Earlier this year, News Corp secured a lucrative multi-year content deal with OpenAI, signaling a partnership that aligns with its interests in protecting intellectual property rights.

Thomson emphasized that while News Corp prefers to engage with companies collaboratively rather than through litigation, they feel compelled to challenge what they view as the “content kleptocracy” in the industry. “We will pursue with vigor and rigor” those AI companies they believe are abusing intellectual property rights, he stated, underscoring the company’s commitment to protecting its journalists, writers, and overall business interests.

The damages sought by News Corp include $150,000 for each alleged infringement, as well as any profits that Perplexity has made from the use of their content. Depending on how the evidence is interpreted, the potential financial ramifications for Perplexity could be substantial, reflecting the high stakes involved in this legal battle.