U.S. District Judge Paul Engelmayer denied a motion by Perplexity and SerpApi to dismiss Reddit’s lawsuit.
Reddit alleges the firms violated the Digital Millennium Copyright Act by bypassing technological safeguards to scrape user content. The lawsuit claims the companies used massive amounts of data to train AI models without valid licensing agreements.
The ruling moves Reddit’s primary claims into the discovery phase in New York federal court. This decision establishes a potential precedent for how content platforms protect data from uncompensated use by AI developers.