Background of the Lawsuit

Encyclopedia Britannica, the historic reference publisher, and Merriam-Webster, its well‑known dictionary brand, initiated a lawsuit in New York federal court on September 10th. The complaint alleges that Perplexity, an AI‑driven answer engine positioning itself as a competitor to Google Search, systematically scrapes the publishers’ websites, copies their copyrighted definitions, and redirects internet traffic away from the original sources.

Allegations of Copyright and Trademark Infringement

The plaintiffs contend that Perplexity’s technology not only reproduces their content verbatim but also attaches the Britannica and Merriam‑Webster names to AI‑generated answers that are “hallucinated” or incomplete. Court filings include side‑by‑side screenshots that show Perplexity’s output matching Merriam‑Webster’s definition word for word, supporting the claim of plagiarism. The lawsuit further asserts trademark infringement, arguing that the unauthorized use of the companies’ names misleads users and dilutes the brands’ reputations.

Perplexity’s Business Model and Prior Legal Challenges

Perplexity markets itself as an alternative to traditional web search, offering concise answers generated by artificial intelligence. Critics have labeled the platform a “bullshit machine” for allegedly presenting uncredited, copied material as original. The company is also accused of “stealth crawling,” a practice that bypasses website blockers designed to prevent automated scraping. Investors in Perplexity include high‑profile figures such as Jeff Bezos.

In addition to the Britannica case, Perplexity has faced litigation from News Corp, the parent of outlets like The Wall Street Journal and the New York Post, in October 2024. Those suits similarly allege unauthorized use of copyrighted news content.

Partnerships and Revenue‑Sharing Initiatives

Despite the legal disputes, Perplexity has pursued partnerships with several media organizations. Time magazine and the Los Angeles Times have joined the company’s ad‑revenue‑sharing program, allowing their content to appear in Perplexity’s answer feeds while receiving a portion of advertising revenue.

World History Encyclopedia also entered Perplexity’s publisher program and, on September 8th, launched a Perplexity‑powered chatbot. The tool enables users to explore the encyclopedia’s database of articles and academic sources through AI‑driven queries.

Implications for the AI Search Industry

The lawsuit underscores growing tension between traditional publishers and emerging AI search platforms. As AI models become more capable of generating concise answers, the line between fair use and infringement remains contested. The outcome of the Britannica and Merriam‑Webster case could set precedent for how AI companies must handle copyrighted and trademarked material, potentially prompting broader industry reforms or new licensing frameworks.

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