Welcome to McKool Smith’s AI Litigation Tracker, which provides regular updates on key generative AI-focused copyright infringement-related litigations impacting the media and entertainment industries.

The Tracker is prepared by McKool Smith principal Avery Williams, who advises clients in emerging developments related to AI copyright disputes. It is featured in the brAIn, a weekly newsletter by AI/media expert Peter Csathy offering insights into how generative AI is transforming the creative economy.

You can access the AI Litigation tracker here.

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1.   Dow Jones & Co, et al v. Perplexity AI

New Case! On October 21st, The Wall Street Journal and The New York Post sued generative search company Perplexity AI in the U.S. District Court for the Southern District of New York for copyright infringement and other related claims. A new twist in this litigation is the focus on Retrieval Augmented Generation (“RAG”) AI. RAG GenAI not only uses an LLM trained on copyrighted material to respond to individual prompts, but also goes out to the web to update itself based on the relevant query. Perplexity even said the quiet part out loud, encouraging its users to “skip the links” to the actual sources of the copyrighted content. Based on Perplexity’s RAG model, the nedia plaintiffs allege that Perplexity is infringing on their copyrights at the input and output stage, sometimes reproducing copyrighted content verbatim. Plaintiffs cited their parent company News Corp’s recent licensing agreement with OpenAI in explaining that GenAI technology can be developed by legitimate means.

Perplexity’s CEO claimed to be surprised by the lawsuit. Color us skeptical!

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