Perplexity logo is seen in this illustration taken May 20, 2024. REUTERS/Dado Ruvic/Illustration

By Kritika Lamba

(Reuters) -Perplexity will display pictures from Getty Images across its AI search and discovery tools under a multi-year deal that sent the visual content company's shares 5% higher on Friday.

The deal marks the latest in licensing tie-ups between AI startups and digital platforms, which are looking to create new revenue streams while protecting their intellectual property.

Getty will provide visuals to Perplexity through an API integration that will allow the AI platform to pull licensed images directly from its vast image library, giving users access to premium content with proper attribution.

Perplexity also plans to include image credits and source links to share the proper legal use of licensed content.

AI firms' use of copyrighted content has drawn mounting scrutiny and has triggered lawsuits. Getty, which also licenses to platforms like iStock and Unsplash, has previously sued Stability AI over image scraping.

Perplexity has also faced multiple copyright lawsuits from prominent publishers, including Japan's Nikkei and Asahi Shimbun, and has since introduced a revenue-sharing model, partnering with outlets like TIME, Der Spiegel, and others.

AI companies are signing licensing deals even as they fight fair-use lawsuits, a move that could weaken their own legal defense, said Mark Lemley, director of Stanford Program in Law, Science and Technology.

"AI companies will end up paying some entities, like Getty, that have large collections of high-quality content. But the licensing model isn't going to work for all the content on the internet, because training depends on too many inputs."

The licensing deal follows Getty's efforts to support AI-driven creativity, enabling users to generate visuals safely using licensed content in generative AI tools.

(Reporting by Kritika Lamba in Bengaluru; Editing by Leroy Leo and Sriraj Kalluvila)