New York Times Takes Legal Action Against AI Startup Over Content Scraping
NY Times Files Copyright Lawsuit Against Perplexity AI
The New York Times has escalated its battle over AI content usage by filing a federal lawsuit against Perplexity, accusing the AI search startup of "mass, unauthorized copying and distribution" of its copyrighted material.
Image source note: The image was generated by AI, and the image licensing service is Midjourney.
Core Allegations Against Perplexity
The newspaper claims Perplexity's Retrieval-Augmented Generation (RAG) system effectively creates "near-verbatim news" copies that allow users to bypass visiting NYTimes.com. Court documents reveal startling numbers - over 175,000 visits to the Times' website in August 2024 alone, allegedly circumventing robots.txt restrictions.
"This isn't just about protecting our content," said Times spokesperson Graham James. "It's about ensuring fair compensation for journalism that costs millions to produce."
Technical Concerns Highlighted
The lawsuit details several concerning practices:
- Evasion tactics: Using unlisted user agents and dynamic IP addresses
- Misrepresentation: Once labeling recalled products as "Wirecutter recommended" when they'd never been reviewed
- Revenue impact: Creating what the Times calls a "substitute market" that undermines subscriptions and ads
The complaint alleges violations of the Digital Millennium Copyright Act's anti-circumvention provisions.
Legal Strategy and Industry Impact
The Times seeks unspecified damages plus injunctive relief that would force Perplexity to:
- Stop scraping NYT content
- Destroy existing copied material
- Potentially reshape how RAG systems operate moving forward
The case could set important precedents as publishers grapple with generative AI. Notably, Chicago Tribune filed a similar suit recently, while News Corp and others pursue separate actions.
Diverging Perspectives on Fair Use
Perplexity's communications director Jesse Dwyer offered a historical perspective: "New technologies always face legal challenges - from radio to social media. Innovation ultimately finds its way."
The company has launched initiatives like Publishers' Program (ad revenue sharing) and Comet Plus ($5/month with 80% going to media), though notably without NYT participation.
What Comes Next?
Perplexity must respond within 30 days. Observers will watch closely for:
- Possible temporary injunctions affecting RAG functionality
- Broader implications for AI-publisher licensing deals
- Potential acceleration of federal regulations on AI content use
The FTC has already begun soliciting input on labeling requirements for AI-generated material.
