Perplexity's fate is like falling on a ladder, a hammer and a roof because today it's their turn to be sued by Encyclopedia Britannica and Merriam-Webster. The world's leading encyclopedias and dictionaries are suing Perplexity for allegedly using intellectual property without permission to provide answers to the internet search features offered.
By using intellectual property without permission, Perplexity is diverting traffic from Encyclopedia Britannica and Merriam-Webster's sites, resulting in loss of revenue. The lawsuit may also be filed because Perplexity is a competitor since it is now an AI company that is developing an AI chatbot for educational purposes.
Perplexity has the ability to provide direct answers to questions given by users by providing short summaries. It is the same feature as Google's AI Mode which has also received criticism from website operators who are increasingly losing traffic.
The lawsuit filed by Encyclopedia Britannica and Merriam-Webster against Perplexity is the same as that filed by News Corp and several Japanese newspapers for using their content without permission.