A significant legal action concerning the use of journalistic content by artificial intelligence tools was initiated on October 21, 2024, in the United States District Court for the Southern District of New York, pitting Dow Jones & Company, Inc. and NYP Holdings, Inc., subsidiaries of News Corporation, against Perplexity AI, Inc.
The plaintiffs, owners of The Wall Street Journal and The New York Post, assert that their business model—relying on digital subscription revenue, online advertising, and licensing agreements—is directly threatened by the defendant's activities. They emphasize that their success and sustainability are based on the work of skilled journalists and professionals producing high-quality information in line with rigorous journalistic standards.
In support of their claim, the plaintiffs principally invoke the Copyright Act (17 U.S.C. § 106), which grants copyright holders the exclusive rights to reproduce, distribute, and create derivative works. They allege massive and systematic reproduction of their protected content by the defendant's AI-powered response engine, particularly through the "Skip the Links" feature, which enables users to access content directly without visiting publishers' websites.
The plaintiffs also cite federal unfair competition law, specifically the doctrine of “misappropriation” established in International News Service v. Associated Press (1918), arguing that the appropriation and commercial use of another’s labor constitutes an act of unfair competition when it deprives the creator of the legitimate benefit of their investment.
In a press release responding to this lawsuit, Perplexity AI, Inc. places the dispute within the broader context of media companies' systemic opposition to generative AI tools, citing approximately thirty similar cases. The defendant contends that this is a reactionary attempt to maintain a monopoly on the dissemination of publicly reported news.
The defendant asserts the full legality of its operations, noting that it has implemented a robust citation and referencing system since its inception, a system recognized by industry peers and even commended by The Wall Street Journal in its “Great AI Challenge” ranking. Perplexity AI formally disputes the allegations in the complaint regarding the characterization of its allegedly “regurgitated” content, the actual use of its platform, and the claimed lack of response to inquiries from News Corporation.
On a commercial level, Perplexity highlights its commitment to collaboration with news publishers, illustrated by an innovative revenue-sharing program already adopted by major media outlets such as TIME, Fortune, and Der Spiegel. The defendant maintains an open invitation to negotiate with the plaintiffs, while criticizing a procedural strategy aimed at artificially creating unrepresentative results for litigation purposes.
This dispute underscores the current tensions between copyright protection and technological advancement in information access. On one side, press publishers seek to safeguard their economic model and protect their investments in producing high-quality journalistic content. On the other, AI companies claim to offer innovative information access tools essential to a modern cultural ecosystem, while expressing willingness to establish fair collaboration models with content producers.
The outcome of this case could set important legal precedents regarding the application of copyright law to AI technologies and influence the evolving relationship between traditional media and technology players within the digital information ecosystem.
