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Major Japan newspaper sues 'free-riding' AI firm Perplexity - The Economic Times
The lawsuit filed Thursday is one of a slew by media companies worldwide against AI firms using their material and is the first by a major Japanese news organisation, Yomiuri said. It accuses Perplexity of "free-riding on the results of the activities of news organisations, which have invested a great deal of effort and expense".Japan's Yomiuri Shimbun newspaper, one of the world's biggest by circulation, is suing US-based AI firm Perplexity for allegedly "free-riding" on its content on its search engine. The lawsuit filed Thursday is one of a slew by media companies worldwide against AI firms using their material and is the first by a major Japanese news organisation, Yomiuri said. It accuses Perplexity of "free-riding on the results of the activities of news organisations, which have invested a great deal of effort and expense". A spokesman for the paper added that this "could have a negative impact on accurate journalism... and shake the foundations of democracy". The lawsuit filed in Tokyo seeks damages of 2.2 billion yen ($14.7 million), equivalent to 120,000 Yomuiri articles used "without permission" between February and June. It is also seeking damages for lost advertising revenue, saying that Perplexity users click only on its search summaries and not on the newspaper's website, reducing traffic. The Yomiuri, with a daily circulation of around six million -- down from over 10 million in 2010 -- and some 2,500 reporters, is one of five major daily newspapers in Japan. Perplexity was not immediately available for comment. After a lawsuit by the Wall Street Journal and the New York Post in October, Perplexity criticised the "adversarial posture" of many media as "shortsighted, unnecessary, and self-defeating". They "prefer to live in a world where publicly reported facts are owned by corporations, and no one can do anything with those publicly reported facts without paying a toll," it said. "We should all be working together to offer people amazing new tools and build genuinely pie-expanding businesses."
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Major Japan newspaper sues 'free-riding' AI firm Perplexity
Japan's Yomiuri Shimbun newspaper, one of the world's biggest by circulation, is suing U.S.-based AI firm Perplexity for allegedly "free-riding" on its content on its search engine. The lawsuit filed Thursday is one of a slew by media companies worldwide against AI firms using their material and is the first by a major Japanese news organization, Yomiuri said. It accuses Perplexity of "free-riding on the results of the activities of news organizations, which have invested a great deal of effort and expense." A spokesman for the paper added that this "could have a negative impact on accurate journalism ... and shake the foundations of democracy." The lawsuit filed in Tokyo seeks damages of ¥2.2 billion ($14.7 million), equivalent to 120,000 Yomuiri articles used "without permission" between February and June. It is also seeking damages for lost advertising revenue, saying that Perplexity users click only on its search summaries and not on the newspaper's website, reducing traffic. The Yomiuri, with a daily circulation of around 6 million -- down from over 10 million in 2010 -- and some 2,500 reporters, is one of five major daily newspapers in Japan. Perplexity was not immediately available for comment. After a lawsuit by the Wall Street Journal and the New York Post in October, Perplexity criticized the "adversarial posture" of many media as "shortsighted, unnecessary, and self-defeating." They "prefer to live in a world where publicly reported facts are owned by corporations, and no one can do anything with those publicly reported facts without paying a toll," it said. "We should all be working together to offer people amazing new tools and build genuinely pie-expanding businesses."
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Japan's Yomiuri Shimbun newspaper has filed a lawsuit against US-based AI firm Perplexity, accusing it of "free-riding" on its content. The case highlights growing tensions between traditional media and AI companies over content usage.
In a significant move that underscores the growing tension between traditional media and artificial intelligence companies, Japan's Yomiuri Shimbun newspaper has filed a lawsuit against US-based AI firm Perplexity. The lawsuit, filed on Thursday, accuses Perplexity of "free-riding" on the newspaper's content through its AI-powered search engine
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.Source: The Japan Times
The Yomiuri Shimbun, one of the world's largest newspapers by circulation, alleges that Perplexity has used approximately 120,000 of its articles without permission between February and June. The lawsuit, filed in Tokyo, seeks damages of ¥2.2 billion ($14.7 million) for this unauthorized use
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.A spokesperson for the newspaper stated that this practice "could have a negative impact on accurate journalism... and shake the foundations of democracy"
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. The lawsuit also seeks additional damages for lost advertising revenue, claiming that Perplexity users only view search summaries and do not click through to the newspaper's website, thereby reducing traffic.This legal action is part of a broader trend of media companies worldwide taking action against AI firms for using their content. It marks the first such lawsuit by a major Japanese news organization
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. The Yomiuri Shimbun, with a daily circulation of around 6 million and a staff of 2,500 reporters, is one of Japan's five major daily newspapers.Related Stories
Source: Economic Times
While Perplexity was not immediately available for comment on this specific lawsuit, the company has previously criticized the "adversarial posture" of many media organizations as "shortsighted, unnecessary, and self-defeating"
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. In response to a similar lawsuit filed by the Wall Street Journal and the New York Post in October, Perplexity argued that these media companies "prefer to live in a world where publicly reported facts are owned by corporations, and no one can do anything with those publicly reported facts without paying a toll"2
.The case highlights the complex relationship between AI technologies and traditional media. While AI companies argue for the free flow of information and the development of new tools, media organizations are concerned about protecting their content and maintaining their business models. Perplexity has called for collaboration, stating, "We should all be working together to offer people amazing new tools and build genuinely pie-expanding businesses"
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.As this legal battle unfolds, it will likely set important precedents for how AI companies can use and interact with content produced by traditional media outlets. The outcome could have far-reaching implications for the future of journalism, AI development, and the broader information ecosystem.
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