The Briefing - New York Times v. Perplexity AI: Copyright, Hallucinations, and Trademark Risk

"In this episode of The Briefing, Weintraub Tobin partners Scott Hervey and Matt Sugarman break down The New York Times v. Perplexity AI, a lawsuit that goes beyond copyright and into largely untested trademark territory. They discuss the Times' allegations that Perplexity copied its journalism at both the input and output stages and, more significantly, that the AI attributed fabricated or inaccurate content to the Times using its trademarks."

"The case raises new questions about false designation of origin, trademark dilution, and how AI hallucinations could expose platforms to liability. In this episode, they cover: Alleged large-scale scraping and output copying of Times content How RAG systems complicate traditional copyright defenses The novel use of trademark law to challenge AI hallucinations - False designation of origin and dilution by tarnishment claims What this lawsuit could mean for AI companies that cite or brand sources Tune in for a clear look at where trademark law meets AI-generated misinformation. Watch this episode on YouTube or listen to the podcast here."

The New York Times alleges Perplexity AI scraped and copied Times journalism at both input and output stages. The Times further alleges that Perplexity's AI attributed fabricated or inaccurate content to the Times using Times trademarks. The lawsuit invokes trademark theories including false designation of origin and dilution by tarnishment to address attribution of AI hallucinations. Retrieval-augmented generation (RAG) systems muddy traditional copyright defenses by blending scraped source material with model outputs. The claims raise questions about platform liability when AI-generated content misattributes or brands inaccurate material using a third party's marks. The outcome could affect AI companies that cite or brand sources.

Read at The IP Law Blog