Perplexity responded to copyright infringement claims from two of News Corp’s (NWSA) companies, Dow Jones and New York Post, in a blog post on Thursday. The AI-powered search engine called the allegations “misleading” and vowed to defend its practices.
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Earlier in the week, News Corp-owned Dow Jones and New York Post had filed a lawsuit against the California-based startup, accusing Perplexity of engaging in a “massive amount of illegal copying” of copyrighted content.
Perplexity Responds to the Lawsuit
According to the lawsuit, Dow Jones and New York Post initially sent a letter to Perplexity in July, outlining their concerns over the unauthorized use of content and proposing a licensing agreement. In response, Perplexity commented, “The lawsuit reflects an adversarial posture between media and tech that is—while depressingly familiar—fundamentally shortsighted, unnecessary, and self-defeating.”
The crux of the lawsuit is that AI-powered search engines like Perplexity, by offering copyrighted news content in search results, have driven web traffic away from news publishers. However, the company pointed out that it is open to a revenue-sharing arrangement similar to those with publishers like TIME, Fortune, and Der Spiegel.
Furthermore, the company noted that it consistently cites sources, both by listing them above answers and through in-line citations within its AI-generated responses. Moreover, the company firmly believes that the complaints raised in this case lack legal merit and will not withstand scrutiny in a court of law.
What Is the Price Target for the NWSA?
Analysts remain bullish about NWSA stock, with a Strong Buy consensus rating based on unanimous three Buys. Over the past year, NWSA has increased by more than 20%, and the average NWSA price target of $37 implies an upside potential of 42.6% from current levels.
