Two major Japanese newspapers, Nikkei Inc and the Asahi Shimbun Co, have filed a lawsuit against the US-based artificial intelligence start-up Perplexity AI Inc, accusing it of copyright infringement. The suit, announced on August 26, was lodged in the Tokyo District Court, with the publishers seeking an injunction and ¥2.2 billion (S$19 million) each in damages.
Growing Tensions Between Media and AI Firms
The legal action highlights the increasing friction between publishers and AI companies over the use of news content in generative AI tools. Nikkei, the owner of Japan's largest financial newspaper, and the left-leaning Asahi said in a joint statement that Perplexity’s actions amounted to “continuous and large-scale freeloading on journalists’ time and effort.” They warned that such practices could undermine the media industry and pose a threat to democracy.
“These actions amount to continuous and large-scale freeloading on journalists’ time and effort,” the publishers stated. “If left unchecked, this could undermine all media outlets trying to accurately report the facts and ultimately shake the very foundations of democracy.”
Allegations Against Perplexity AI
The newspapers claim that Perplexity unlawfully reproduced and stored their content since at least June last year. Additionally, they allege that the company ignored coding meant to restrict such use and introduced errors into its AI-generated results, which were then falsely attributed to the publications, damaging their reputations.
Perplexity AI, valued at an estimated US$18 billion (S$23 billion) after its last fundraising round, has not commented on the allegations. It is not the first time the start-up has faced litigation. Other media companies such as Forbes, News Corp’s Dow Jones, and Japan’s Yomiuri Shimbun have also taken legal action against the company.
Broader Legal Implications
This lawsuit is part of a wider global debate on how copyright law applies to the rapidly evolving field of generative AI. Courts in Japan, the US, and Europe have become critical arenas for determining how intellectual property rights intersect with AI technology. The outcome of such cases could set significant precedents for the future of media and AI collaboration - or conflict.
As the legal battle unfolds, it serves as a reminder of the growing challenges faced by traditional media as they navigate the complexities of technological innovation and its impact on their business models.
