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Why Are WSJ and NY Post Suing Perplexity AI?

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Have you ever wondered how AI can impact the future of journalism? In a remarkable development, The Wall Street Journal’s parent company, Dow Jones, alongside the New York Post, is taking legal action against the AI-powered search startup Perplexity. This article dives deep into the details of the lawsuit, revealing accusations of copyright infringement and the implications for the media landscape. Read on to discover how this case could reshape the relationship between news organizations and AI technologies.

Background of the Case

Perplexity is facing serious allegations from the publishers of The Wall Street Journal and the New York Post. The lawsuit claims that the startup has been utilizing their content to train its large language models without authorization, ultimately leading to reduced traffic to the original publications. The complaint highlights that these publishers feel that Perplexity is unfairly competing for readers while simultaneously benefiting from the rich content they produce.

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The Core Arguments

One of the main arguments laid out in the lawsuit is that Perplexity doesn’t just provide snippets of copyrighted articles; it allegedly reproduces entire stories, particularly for users subscribed to its premium plan. An example cited was when a user requested the full text of a New York Post article, which the service purportedly delivered in its entirety without permission. This raises significant questions regarding copyright infringement in the digital age.

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Brand Integrity at Stake

Moreover, the lawsuit addresses concerns about brand integrity. The publications argue that Perplexity’s AI model can generate “hallucinations,” meaning it may present incorrect or fabricated information associated with their articles. For instance, there was an alleged incident where Perplexity incorrectly attributed a quote to the Wall Street Journal concerning U.S. military aid that never appeared in their publication.

Previous Legal Actions in the News Industry

This is not the first time news organizations have pursued legal action against AI companies. Notably, The New York Times, along with The Intercept, Raw Story, and AlterNet, have all filed lawsuits against OpenAI, claiming that their content has been used without consent for training language models. Similarly, in a bid to protect their content, Condé Nast sent a cease-and-desist letter to Perplexity, demanding an end to the unauthorized use of their articles. Moreover, Amazon has reportedly begun investigating Perplexity for scraping content from websites without permission.

Potential Outcomes and Industry Reactions

As the situation unfolds, News Corp. is pushing the court to prevent Perplexity from using its content without explicit permission and is seeking damages of up to $150,000 for each infringement. The resolution of this case may not only affect Perplexity but could also set a precedent for how AI companies interact with media organizations in the future. It remains to be seen if Perplexity will consider negotiating a licensing agreement, especially considering that News Corp. recently reached a deal with OpenAI to allow the use of their articles for training models in exchange for financial compensation.

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As the legal landscape evolves, one has to ponder: How will this case reshape the balance between innovation in AI and the protection of intellectual property rights? The outcome could have lasting implications for both the tech and journalism industries.

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Marki Mugan

Creator. Passionate tv fan. Introvert. Problem solver. Travel ninja. Music practitioner. Thinker.

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