In a case that could reshape the boundaries of copyright law in the AI era, Reddit has filed a federal lawsuit against Perplexity AI and several of its partners, alleging that the company engaged in massive, unauthorized scraping of Reddit content. The suit, filed in September 2025, accuses Perplexity of copying millions of user posts and comments without consent to train its AI products.
The Heart of the Lawsuit
According to Reddit’s complaint, Perplexity’s systems harvested Reddit content in violation of its terms of service and copyright protections. The platform claims that Perplexity intentionally bypassed technical safeguards designed to block automated scraping tools.
Reddit calls this “industrial-scale theft,” asserting that Perplexity profited from years of user-generated creativity by using it to train and power commercial AI systems. The lawsuit also alleges that Perplexity ignored formal cease-and-desist notices and continued extracting data despite clear restrictions.
Perplexity, in response, maintains that its activities fall under the doctrine of fair use, a defense under U.S. copyright law that allows limited use of copyrighted material without permission for transformative purposes such as research, commentary, or education. However, this defense has become a flashpoint in recent years as courts grapple with whether using copyrighted data to train large language models qualifies as “transformative.”
The Stakes for the Tech Industry
Reddit’s lawsuit highlights a growing tension in the technology world: the clash between content creators, platforms, and AI developers. As artificial intelligence companies compete to train more capable models, access to high-quality data has become the new digital gold rush.
But unlike open data sets, most online content is privately owned. Reddit recently struck lucrative licensing deals with companies like Google, allowing approved AI firms to use its data for hundreds of millions of dollars. Perplexity’s alleged scraping, Reddit argues, undermines that business model and devalues legitimate partnerships.
If Reddit prevails, the case could establish stronger protections for user-generated content and force AI companies to negotiate paid licenses rather than rely on scraping public websites. If Perplexity wins, it could open the door for broader use of online data in AI training, reshaping the entire industry.
Conclusion
The Reddit v. Perplexity case is more than a corporate dispute—it’s a landmark moment for data ownership in the age of AI. Whether you’re a developer, startup, or enterprise using AI, this case underscores the importance of understanding where your data comes from and whether you have the right to use it.
Contact Romano Law today to learn how our attorneys can help you assess AI compliance, negotiate data licenses, and protect your business from potential legal exposure.
Contributions to this blog by Kennedy McKinney.