New York Times Issues Cease and Desist Notice to AI Startup Perplexity Over Content Usage

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On Tue, 15 Oct, 4:05 PM UTC

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The New York Times has sent a cease and desist notice to AI startup Perplexity, demanding they stop using the newspaper's content for generative AI purposes, citing copyright violations.

New York Times Takes Legal Action Against Perplexity AI

The New York Times (NYT) has escalated its efforts to protect its content from unauthorized use in artificial intelligence applications. On October 2, 2024, the renowned news publisher sent a "cease and desist" notice to Perplexity, a generative AI startup, demanding an immediate halt to the company's use of NYT's content for AI-related purposes 1.

Copyright Infringement Claims

In the letter, which was shared with Reuters, the NYT asserted that Perplexity's utilization of its content, particularly in creating summaries and other outputs, constitutes a violation of copyright law 2. The publisher has set an October 30 deadline for Perplexity to provide information on how it accesses the NYT's website despite preventive measures.

Perplexity's Response and Practices

Perplexity, in its defense, stated to Reuters, "We are not scraping data for building foundation models, but rather indexing web pages and surfacing factual content as citations to inform responses when a user asks a question" 2. The startup has indicated its intention to respond to the NYT's demands by the specified deadline.

Broader Context of AI and Publishing

This incident is part of a larger trend of conflicts between news publishers and AI companies. Since the introduction of ChatGPT, publishers have been increasingly concerned about chatbots that can search the internet for information and generate summaries for users 2.

Previous Controversies and Legal Actions

The NYT is currently engaged in a legal battle with OpenAI, having filed a lawsuit late last year. The publisher accused OpenAI of using millions of its articles without permission to train the ChatGPT AI model 3.

Industry-Wide Implications

This case highlights the ongoing challenges in the AI industry regarding content usage and copyright. Earlier this year, Reuters reported that multiple AI companies were circumventing web standards used by publishers to prevent data scraping for generative AI systems 2.

Perplexity's Previous Efforts and Future Plans

Perplexity has faced accusations of plagiarism from media organizations like Forbes and Wired in the past. In response, the company launched a revenue-sharing program to address some of the concerns raised by publishers 2. The outcome of this latest confrontation with the NYT could have significant implications for the future of content usage in AI applications and the relationship between AI companies and traditional media outlets.

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