The lawsuit states, "This suit is brought by news publishers who seek redress for Perplexity's brazen scheme to compete for readers while simultaneously freeriding on the valuable content the publishers produce."
The plaintiffs assert that Perplexity engages in a practice of copying massive amounts of copyrighted content, using this information to generate responses that act as a substitute for news websites.
Perplexity's legal troubles reflect the ongoing tension between tech companies and media publishers over the use of copyrighted materials in AI systems, highlighting a growing dilemma in the industry.
The newspaper industry is exploring two primary strategies: initiating lawsuits against AI startups and pursuing licensing agreements to maintain revenue streams from their content.
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