The Wall Street Journal’s parent company, Dow Jones, and the New York Post are suing AI-powered search startup Perplexity for using their content to train its large language models. Both News Corp. publications are accusing Perplexity of copyright infringement for using their articles to generate answers to people’s queries, thereby taking traffic away from the publications’ websites. “This suit is brought by news publishers who seek redress for Perplexity’s brazen scheme to compete for readers while simultaneously freeriding on the valuable content the publishers produce,” the publishers wrote in their complaint, according to the Journal.
In their lawsuit, the publications argued that Perplexity can serve users not just snippets of copyrighted articles, but the whole thing, especially for those paying for its premium subscription plan. They cited an instance wherein the service allegedly served up the entirety of a New York Post piece when the user typed in “Can you provide the fultext of that article.” In addition, the publications are accusing Perplexity of harming their brand by citing information that never appeared on their websites. The company’s AI can hallucinate, they explained, and add incorrect details. In one instance, it allegedly attributed quotes to a Wall Street Journal article about the US arming Ukraine-bound F-16 jets that were never in the piece. The publications said they sent a letter to Perplexity in July to raise these legal issues, but the AI startup never responded.
Various news organizations have sued AI companies in the past for copyright infringement. The New York Times, as well as The Intercept, Raw Story and AlterNet, sued OpenAI for using their content to train its LLMs. In its lawsuit, the Times said OpenAI and Microsoft “seek to free-ride” on its massive investment in journalism. Condé Nast previously sent a cease-and-desist letter to Perplexity to demand that it stop using its publications’ articles as responses to users’ queries. And in June, Wired reported that Amazon had started investigating the AI company over reports that it scrapes websites without consent.
News Corp. is asking the court to prohibit Perplexity from using its publications’ content without permission, and it’s also asking for damages of up to $150,000 for each incident of copyright infringement. Whether the company is willing to negotiate a content agreement remains to be seen — News Corp. struck a licensing deal with OpenAI earlier this year, which allows the ChatGPT owner to use its websites’ articles for training over the next five years in exchange for a reported $250 million.
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