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Legal Allegations and Responses
, owner of the and the , sued , alleging the startup illegally scraped copyrighted content to train its AI, diverting traffic and revenue.
Perplexity, backed by , is accused of creating an "answer engine" that competes for the same audience by using copyrighted news stories without permission or payment.
Broader Context and Industry Impact
The lawsuit highlights a growing conflict between news publishers and tech companies over the use of copyrighted material for AI development, with some publishers opting for licensing deals and others pursuing legal action.
News Corp's legal action against Perplexity is part of a larger trend where media companies seek to protect their intellectual property in the face of AI technologies that can potentially disrupt traditional revenue models.
