The New York Times is suing Perplexity for copyright infringement

Core Viewpoint - The New York Times has filed a lawsuit against AI search startup Perplexity for copyright infringement, marking its second legal action against an AI company, as part of a broader strategy by publishers to negotiate compensation for the use of their content in AI products [1][8]. Group 1: Lawsuit Details - The lawsuit claims that Perplexity provides commercial products that substitute for The Times without permission or remuneration [1]. - The Times alleges that Perplexity's retrieval-augmented generation (RAG) products generate responses that often reproduce original content verbatim or near-verbatim, including copyrighted works from The Times [4][6]. - The lawsuit seeks damages for the harm caused and aims to prevent Perplexity from using its content in the future [11]. Group 2: Industry Context - The lawsuit is part of a long-standing trend where publishers have historically sued new technology companies, from radio to social media, to protect their content [7]. - Other media outlets, including the Chicago Tribune, have also filed lawsuits against Perplexity, indicating a growing concern among publishers regarding AI's impact on original journalism [1][10]. - The Times has previously sent a cease and desist letter to Perplexity and has attempted to negotiate terms for content use over the past 18 months [7]. Group 3: Perplexity's Response and Initiatives - In response to compensation demands, Perplexity launched a Publishers' Program that shares ad revenue with participating outlets and introduced Comet Plus, which allocates 80% of its $5 monthly fee to publishers [2]. - Perplexity's head of communications stated that publishers have historically struggled to win legal battles against new technologies, suggesting a belief that the lawsuit may not succeed [7]. - The company has faced accusations from other outlets, including Wired and Forbes, regarding unethical content scraping practices [11]. Group 4: Broader Legal Landscape - The Times is also involved in ongoing litigation against OpenAI and Microsoft, claiming that they trained AI systems using its articles without compensation [8]. - A related case against Anthropic has set a precedent regarding fair use in AI training, highlighting the complexities of copyright law in the context of AI [9]. - The legal pressure on Perplexity is mounting, with multiple publishers and media companies pursuing similar claims against the startup [10]. Group 5: Potential for Collaboration - Despite the lawsuit, The Times has shown willingness to collaborate with AI firms that compensate for its content, having signed a multiyear deal with Amazon for content licensing [12]. - Other publishers have also engaged in licensing agreements with AI companies, indicating a potential path forward for monetizing content in the AI landscape [12].