New York Times sends cease-and-desist notice to AI startup Perplexity over unauthorized content use

In recent months, legal actions against AI startups over the unauthorized use of content have been on the rise. The latest is Perplexity, which just received a cease-and-desist notice from the New York Times.

According to a report from the Wall Street Journal, The New York Times has issued a cease-and-desist to Perplexity AI, demanding the Bezos-backed AI startup stop using its content for summaries and other outputs without permission.

Per the report, the letter emphasized that Perplexity’s use of the publisher’s material, including summaries, violates copyright law. This highlights growing concerns among publishers about AI systems scraping online content to generate outputs without following copyright rules.

“Publisher demands that Perplexity stop accessing its content; startup isn’t interested ‘in being anyone’s antagonist,’ CEO says.”

The New York Times also requested that Perplexity explain how it is accessing its website despite efforts to block such activity, the report noted.

This notice follows plagiarism accusations against Perplexity AI just three months earlier. The startup had previously promised to stop using “crawling” technology, according to the letter. Earlier this year, Reuters revealed that several AI companies were bypassing standards designed to prevent data scraping for use in AI systems.

Perplexity has faced similar accusations from outlets like Forbes and Wired. In response, the company introduced a revenue-sharing program to address concerns from publishers. Notable participants in Perplexity’s “Publishers Program” include Fortune, Time, Entrepreneur, The Texas Tribune, Der Spiegel, and WordPress.com.

Media companies are increasingly pushing back against AI firms using their content without proper agreements. Earlier this year, Condé Nast and Forbes also accused Perplexity of plagiarism, which further fueled the ongoing debate over how AI startups handle proprietary content.

These legal challenges reflect the growing friction between AI firms and content creators as the tech industry struggles to balance innovation with respect for intellectual property.

Since the launch of ChatGPT, publishers have raised concerns about chatbots pulling information from across the web to create summaries. Perplexity AI isn’t alone in this. The New York Times is also engaged in a legal battle with OpenAI, accusing the company of using millions of its articles without permission to train its chatbot.

Some media organizations, like The Atlantic and Vox Media, have opted for content licensing deals with OpenAI, allowing controlled access to their material for use in AI applications.

Founded in 2022 by Aravind Srinivas, Andy Konwinski, Denis Yarats, and Johnny Ho, Perplexity is an AI-powered search engine that delivers direct answers to user questions. The San Francisco-based startup has positioned itself against heavyweights like OpenAI’s ChatGPT and Google’s Bard, aiming to redefine search with its user-centric, AI-driven model. The company’s recent launch of an iOS app underscores its commitment to catering to a predominantly mobile audience.