The artificial intelligence–driven search company Perplexity has once again found itself embroiled in legal controversy, this time as the target of fresh litigation initiated by two of the most venerable names in the realm of reference publishing: Encyclopedia Britannica and its subsidiary, Merriam-Webster. On September 10th, Britannica filed a formal complaint in federal court in New York, alleging a range of unlawful practices that strike at the core of copyright and trademark protections. This action underscores the mounting tensions between centuries-old knowledge institutions dedicated to curating authoritative information and the new breed of AI enterprises that seek to reorganize and deliver such information through algorithmic search and generative technology.

At the heart of the lawsuit lie assertions that Perplexity’s so-called “answer engine,” the technology that powers its AI-generated responses to user queries, does not merely synthesize information available online but actively harvests, or “scrapes,” content directly from Britannica and Merriam-Webster’s websites. According to the plaintiffs, this practice diverts internet traffic that would otherwise flow to their platforms, thereby undermining their visibility, diminishing advertising revenue, and eroding user trust. Moreover, Britannica accuses Perplexity of plagiarizing their carefully researched and copyrighted content. To demonstrate this, the suit presents side-by-side screenshots showing Perplexity providing a definition indistinguishable from the wording originally published by Merriam-Webster, an example introduced as direct evidence of unauthorized copying. Additionally, Britannica has put forward claims of trademark infringement, asserting that Perplexity has improperly attached their respected brand names to results that are incomplete, misleading, or indicative of AI hallucinations, thereby threatening the reputation associated with those marks.

The lawsuit sheds light on a broader debate in the technology sector: whether emerging AI-powered search competitors can coexist fairly with more traditional content creators. While Perplexity has positioned itself as a potential rival to dominant players such as Google, critics have labeled the service in far harsher terms, describing it as a tool that exploits the intellectual labor of established publishers without offering attribution, acknowledgment, or compensation. Furthermore, the company has faced accusations of engaging in so-called “stealth crawling,” a process by which automated systems bypass website safeguards designed to block unauthorized data scraping—an approach that has been attributed to several AI companies and is increasingly the focus of regulatory and judicial attention.

Perplexity’s rapid ascent has been fueled by backing from high-profile investors, including Amazon founder Jeff Bezos, yet this financial support has done little to insulate the company from growing conflict with traditional media organizations. Several respected outlets have already clashed with Perplexity, among them Forbes, The New York Times, and the BBC. The legal disputes are escalating: in October 2024, News Corp—the parent company of major publications such as The Wall Street Journal and the New York Post—initiated its own lawsuit against the AI firm, adding even more significant weight to the constellation of claims.

However, the narrative is not entirely one of hostility. Some media organizations and content providers have opted to cooperate with Perplexity, engaging in revenue-sharing partnerships designed to integrate publisher content more transparently into the AI’s output. Time magazine and the Los Angeles Times have both entered into such agreements, indicating that some publishers see value in leveraging Perplexity’s reach rather than opposing it outright. Likewise, World History Encyclopedia, an online educational platform with broad acclaim, joined Perplexity’s publisher program as well. In a noteworthy development on September 8th, it launched an AI-driven chatbot powered by Perplexity’s technology, enabling users to seamlessly explore its extensive archival materials, academic references, and curated historical sources in an interactive format.

Ultimately, the Britannica and Merriam-Webster lawsuit illustrates a pivotal moment in the evolution of digital knowledge dissemination. The case reflects both the promise and the peril of artificial intelligence when deployed as an intermediary between human inquiries and informational repositories. While AI platforms like Perplexity promise efficiency and novel modes of engagement, the disputes now playing out in court highlight the unresolved legal and ethical questions concerning ownership of intellectual property, the responsibility of attribution, and the long-term implications for publishers who have historically preserved humanity’s store of authoritative knowledge.

Sourse: https://www.theverge.com/news/777344/perplexity-lawsuit-encyclopedia-britannica-merriam-webster