New York Times Sues Perplexity AI Over "Illegal" Content Copying, Trademark Infringement & AI Hallucinations

Dec 5, 2025 United States United States Technology
New York Times Sues Perplexity AI Over "Illegal" Content Copying, Trademark Infringement & AI Hallucinations

The New York Times is suing Perplexity AI for allegedly copying millions of articles, violating trademarks, and creating "hallucinations" attributed to the news

New York Times Takes Legal Action Against Perplexity AI Over Content Copying

The esteemed New York Times has initiated a significant legal battle against the artificial intelligence startup, Perplexity AI. Filed on December 5, the lawsuit alleges widespread "illegal" copying and unauthorized distribution of the Times' journalistic content. This legal challenge underscores the mounting tensions between established media organizations and the rapidly expanding sector of generative AI.

Core Allegations: Copyright, Trademark, and AI "Hallucinations"

The complaint from The Times delves deeper than mere content replication. It specifically accuses Perplexity AI, which is based in San Francisco, of violating its trademarks under the Lanham Act. A key point of contention is the accusation that Perplexity's AI products frequently generate inaccurate or entirely fabricated content—a phenomenon commonly referred to as "hallucinations"—and then misleadingly attribute this content to The New York Times. This often occurs with the false attribution displayed alongside the newspaper's registered trademarks, potentially confusing readers and undermining the Times' editorial integrity.

The lawsuit posits that Perplexity's fundamental business model is built upon "scraping" copyrighted material. This includes content that is typically protected behind paywalls, which Perplexity allegedly uses without permission to train and power its advanced AI systems. Publishers worldwide are increasingly voicing concerns that tech giants are leveraging vast quantities of their copyrighted works to develop sophisticated AI models without proper licensing agreements or fair compensation.

Perplexity AI Faces Multiple Legal Challenges

This legal action by The New York Times is not an isolated incident; it represents another front in an escalating wave of legal conflicts for Perplexity AI. The startup is simultaneously contending with similar accusations from other prominent media entities. Notably, Dow Jones and the New York Post, both owned by media magnate Rupert Murdoch, have filed their own complaints against Perplexity. Furthermore, in October, social media giant Reddit also sued Perplexity in a New York federal court, alleging that it and several other companies unlawfully scraped user data to train Perplexity's AI-powered search engine.

These collective legal challenges highlight a critical juncture in the digital landscape, as judicial systems worldwide begin to grapple with the complex issues surrounding intellectual property rights and their application in the burgeoning age of artificial intelligence.

By news 5 hours ago