In a bold escalation of tensions between traditional media and artificial intelligence upstarts, Japan’s Yomiuri Shimbun, the nation’s largest newspaper by circulation, has filed a lawsuit against U.S.-based AI search engine Perplexity, accusing it of widespread copyright infringement. The suit, lodged in Tokyo District Court on August 7, 2025, alleges that Perplexity unlawfully scraped and reproduced content from nearly 120,000 Yomiuri articles to power its generative AI responses, bypassing licensing agreements and siphoning potential revenue from the publisher.

The complaint details how Perplexity’s system allegedly copied articles from Yomiuri’s online platform, Yomiuri Shimbun Online (YOL), and delivered answers to users that mirrored the original content, violating rights of reproduction and public transmission under Japanese copyright law. According to reporting by Nieman Journalism Lab, this marks the first such challenge by a major Japanese news outlet against an AI firm, highlighting growing global scrutiny over how AI models train on and regurgitate copyrighted material without compensation.

Quantifying the Alleged Theft and Its Financial Toll

Yomiuri claims Perplexity accessed 119,467 articles without permission between February and June 2025, using them to generate user queries. The publisher is seeking damages of 2.2 billion yen—roughly $15 million—calculated at 16,500 yen per article, a figure derived from standard licensing fees. This isn’t just about direct copying; Yomiuri argues that Perplexity’s model undermines its business by diverting traffic from YOL, where ad revenue and subscriptions are generated, unlike traditional search engines that link back to sources.

Further insights from The Straits Times reveal that the lawsuit also demands an injunction to halt future unauthorized use, potentially setting a precedent for how AI companies must negotiate with content creators. Industry insiders note this calculation method could become a template for similar disputes, emphasizing the economic harm when AI “free-rides” on journalistic investments.

Broader Implications for AI Regulation in Japan and Beyond

This case arrives amid a wave of international lawsuits against AI firms, including The New York Times’ ongoing battle with OpenAI and Microsoft over similar scraping practices. In Japan, where copyright laws are stringent but AI oversight is evolving, Yomiuri’s move could pressure regulators to clarify boundaries for generative technologies. As detailed in coverage by Al Mayadeen English, the $15 billion figure cited in some reports appears inflated, but the core accusation underscores ethical questions about AI’s reliance on vast datasets of human-created content.

Perplexity, founded in 2022 and valued at over $1 billion, has faced prior criticism for its data practices, including accusations of fabricating news attributions. The company has not publicly responded to the Yomiuri suit, but executives have previously defended their approach as transformative fair use, akin to search engine indexing. Yet, as The Asahi Shimbun reports, Yomiuri’s action reflects a broader pushback from publishers worldwide, who argue that without fair compensation, quality journalism risks erosion.

Industry Reactions and Potential Ripple Effects

Media executives are watching closely, with some viewing this as a litmus test for AI-media relations in Asia. Analysts at OpenTools AI News suggest the lawsuit raises “crucial questions about AI regulation and media ethics,” potentially influencing licensing deals or even prompting tech firms to adopt revenue-sharing models. In Japan, where Yomiuri boasts a circulation of over 6 million, the case amplifies calls for updated laws to address AI’s rapid advancement.

If successful, Yomiuri’s suit could embolden other publishers, from Europe to the U.S., to demand accountability. Conversely, a win for Perplexity might accelerate AI innovation at the expense of content creators, forcing a reevaluation of intellectual property in the digital age. As the Tokyo court deliberates, the outcome may redefine how AI intersects with the foundational work of journalism, balancing technological progress against the sustainability of independent reporting.