Perplexity AI is facing fresh legal scrutiny after Encyclopedia Britannica and its subsidiary Merriam-Webster filed a copyright lawsuit against the startup, alleging its AI-driven “answer engine” unlawfully uses their content.
As reported by Reuters, the companies filed their complaint on Wednesday in U.S. District Court for the Southern District of New York, accusing Perplexity of scraping, copying, and reproducing their articles without permission. They argue the practice diverts traffic away from their websites and diminishes revenue, while also allowing Perplexity to “free ride” on their editorial work by offering AI-generated summaries of their content.
The lawsuit further claims that Perplexity’s system infringes on trademark rights by attributing fabricated or “hallucinated” material to Britannica and Merriam-Webster, potentially damaging their reputation. The plaintiffs are seeking monetary damages and a court order to block the AI company from continuing to misuse their intellectual property.
Perplexity’s “answer engine” has been marketed as an alternative to traditional search platforms, offering direct AI-generated responses rather than a list of links. However, Britannica and Merriam-Webster argue this model undermines publishers by cutting users off from original sources.
Perplexity, which did not immediately respond to Reuters’ requests for comment, is already embroiled in other high-profile legal battles. News Corp’s Dow Jones and the New York Post have filed similar lawsuits, alleging that their articles were improperly used in the company’s search technology.
The dispute comes amid a wave of lawsuits from authors, publishers, and media companies against AI developers, as courts begin to grapple with how copyright law applies to generative AI. The outcome of these cases could set important precedents for the future of journalism, publishing, and AI innovation.
The case is Encyclopedia Britannica Inc v. Perplexity AI Inc, No. 1:25-cv-07546.
Need Help?
If you’re concerned or have questions about how to navigate the global AI regulatory landscape, don’t hesitate to reach out to BABL AI. Their Audit Experts can offer valuable insight and ensure you’re informed and compliant.
