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The New York Times Sues AI Startup Perplexity Over Copyright Infringement

Legal Showdown in the Digital Age

The New York Times has taken decisive legal action against AI search startup Perplexity, accusing the firm of copyright infringement. The suit, filed on Friday, marks the second legal challenge targeting an AI organization, joining similar efforts led by media powerhouses such as the Chicago Tribune and others.

Unlicensed Content and Commercial Products

The Times contends that Perplexity has exploited its copyrighted content by substituting original material in its commercial offerings—without permission or proper remuneration. According to the legal filing, the startup’s reliance on retrieval-augmented generation (RAG) techniques, which gather and repackage information from websites and databases, results in outputs that closely mirror the original texts.

Negotiations, Licensing, And Industry Leverage

This litigation emerges amidst ongoing negotiations between media companies and AI firms. While some publishers, including The New York Times, have engaged in licensing agreements—such as the multi-year deal with Amazon—publishers are increasingly using lawsuits as leverage. They aim to force AI companies to enter formal licensing agreements that fairly compensate creators and preserve the economic sustainability of quality journalism.

Countermeasures and Industry Precedents

In response to mounting compensation demands, Perplexity introduced a Publishers’ Program last year. This initiative offers ad revenue sharing to prominent publications like Gannett, TIME, Fortune, and the Los Angeles Times. More recently, the company launched Comet Plus—allocating 80% of its monthly fee to participating publishers—and secured a significant multi-year licensing deal with Getty Images. Despite these measures, critics argue that platforms like Perplexity continue to undermine the value of original, paywalled journalism.

Industry Responses and Historic Battles

Graham James, a spokesperson for The New York Times, asserted, “While we believe in the ethical and responsible use of AI, we firmly object to Perplexity’s unlicensed use of our content. RAG allows Perplexity to crawl the internet and steal content from behind our paywall, which should remain exclusive to our subscribers.” Perplexity’s head of communications, Jesse Dwyer, responded by noting that legal challenges against disruptive technology have a longstanding history, from radio and television to the internet and social media.

Implications For The Future Of Copyright And AI

This lawsuit, following past legal actions against companies such as OpenAI and its backer Microsoft, underscores the escalating tension between traditional publishers and tech innovators. Court decisions—like the recent case against Anthropic for using pirated texts—suggest that the legal framework around fair use and content training may evolve significantly as AI technology pushes boundaries.

A Pivotal Moment In Media And Technology

By holding Perplexity accountable for its commercial practices, The New York Times seeks not only to recoup damages but also to set a precedent that ensures content creators receive due compensation. This legal maneuver is emblematic of a broader strategy by legacy publishers to secure the economic viability of their work in an era increasingly dominated by automated, AI-driven content generation.

EU Mercosur Agreement Sparks Political Battle Over Cyprus Agriculture

A political battleground emerged in the Parliamentary Agriculture Committee’s latest session, as fierce debates broke out over the controversial trade deal between the European Union and Latin American nations under the Mercosur framework. Lawmakers voiced deep concerns regarding food safety and the prospects for local agriculture, particularly following the high-profile absence of the Minister of Trade.

Minister Absence And Parliamentary Integrity

Committee Chair Giannakis Gabriel expressed strong disapproval over the Minister’s no-show, noting that the extraordinary session was scheduled at midday at the Minister’s own request. “His absence undermines the authority of the parliament,” Mr. Gabriel declared. Given that the Minister is not abroad, it was expected that he would be present to clarify why Cyprus supported an agreement widely criticized as disadvantaging the agricultural sector.

Trade Deal Under Scrutiny

In his address, A.C.E.L General Secretary Stefanos Stefanos described the pact as a “dangerous agreement” imposed under the pressure of multinational conglomerates. He especially critiqued the contrasting sanitary standards whereby, while the EU bans our farmers from using certain pesticides and antibiotics, the Mercosur deal appears to allow imports produced with these very substances. His remarks underscored the possibility of double standards in safety measures and the potential long-term impacts on Cypriot agriculture.

Economic And Safety Concerns

Legislators questioned the basis of government studies that justified backing the agreement, even as Cyprus’ agricultural sustainability is increasingly threatened by water scarcity and soaring production costs. Representatives from various political factions pointed to insufficient controls over import volumes and tariff structures. For example, Christos Orphanidis (DIKO) demanded precise data on imports from Latin America, citing honey as a case in point, and pressed for clear explanations regarding the tariff regime.

Legal And Health Implications

Questions about legal authority were raised by Elias Myriantounos (EDEK), who inquired whether parliament can reject or amend the agreement should economic studies forecast negative outcomes. Environmental advocates, like Haralambos Theopemptou of the Movement of Ecologists, emphasized the need to safeguard traditional products such as halloumi, highlighting concerns over how rigorous food safety controls will be maintained. Meanwhile, Linos Papagiannis (ELAM) cautioned against unfair competition, drawing parallels with challenges posed by lower-standard goods from occupied territories.

Protecting Local Interests

The overarching message from lawmakers was clear: the future of Cyprus’ farming community and the well-being of its citizens should not be sacrificed at the altar of commercial trade. Agricultural organizations have voiced alarm over the importation of goods potentially contaminated with banned substances, the risk of market distortion by low-quality products, and the lack of localized impact studies. They argue that the agreement is biased in favor of select corporate interests, ultimately undermining consumer safety and the livelihood of European farmers.

As this debate continues to unfold, the outcome of these deliberations will be pivotal in determining not only trade policy but also the long-term economic and food security landscape of Cyprus.

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Economic Impact Discussion

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