WSJ, NY Post Sue Perplexity AI for ‘Massive Freeriding’
Published: October 22, 2024
In a groundbreaking lawsuit highlighting the growing tension between traditional media and artificial intelligence (AI), the Wall Street Journal (WSJ) and the New York Post are suing AI startup Perplexity AI. The suit accuses Perplexity of "massive freeriding," alleging that the company has been using proprietary news content to train its AI models without permission or compensation. This case is the latest in legal battles as media companies grapple with the rapid rise of AI-generated content and its potential impact on their business models.
The lawsuit, filed in New York, claims that Perplexity, a search and answer engine that uses generative AI to provide information, has been "scraping" articles from the WSJ and New York Post to fuel its algorithms. The media companies argue that this practice constitutes copyright infringement and undermines their ability to monetize their content. As the plaintiffs point out, Perplexity’s business model allegedly relies on aggregating and repurposing news content without investing in journalism or paying for licensing rights.
At the heart of the lawsuit is "freeriding," where a company uses content produced by others without bearing the cost of its creation. This issue has become a flashpoint in the broader debate about how AI systems interact with copyrighted material. According to the plaintiffs, Perplexity’s use of AI to generate summaries and responses based on their articles amounts to unfair competition. By providing users with quick, AI-generated answers based on news articles, Perplexity allegedly reduces the need for users to visit the original news sites, cutting into traffic and ad revenue.
Perplexity AI has gained traction for its innovative AI-driven search capabilities but has not yet formally responded to the lawsuit. However, the case raises important questions about AI's legal and ethical implications in the media industry. While AI companies argue that their models provide valuable services and rely on "fair use" doctrines, media organizations are increasingly pushing back, arguing that AI-driven content creation threatens the sustainability of journalism.
This lawsuit could set a significant precedent for future AI and intellectual property rights cases. Media companies will likely view this case as a critical opportunity to assert their rights in the digital age, especially as AI continues to disrupt industries by creating new ways to access and distribute information. If successful, the WSJ and New York Post may pave the way for other news organizations to take similar legal action, potentially reshaping how AI startups operate in the content space.
As the legal battle unfolds, it underscores the complex relationship between traditional journalism and emerging AI technologies. While AI offers powerful tools for information processing, it also raises challenging questions about content ownership, the value of journalism, and the responsibility of AI developers to respect intellectual property rights. This case will be closely watched by both the media industry and AI developers as they navigate the evolving digital landscape.