CNN Initiates IP Lawsuit Against Perplexity; EU Imposes €200M Fine on Temu for DSA Breaches; Bipartisan U.S. Senators Reach NIL Rights Agreement

The intellectual property landscape saw significant developments this week across litigation, regulatory enforcement, and legislative action. Notably, CNN filed a copyright and trademark infringement lawsuit against generative AI company Perplexity in the Southern District of New York. The suit alleges that Perplexity’s AI answer engine unlawfully accessed and summarized CNN’s copyrighted content without authorization, infringing copyrights and diluting CNN’s trademarks by misleading users regarding lawful access to CNN’s websites.

In Europe, the European Commission imposed a €200 million fine on Chinese e-commerce platform Temu for failing to comply with the EU’s Digital Services Act (DSA). As a designated Very Large Online Platform, Temu neglected to diligently assess and report systemic risks posed by illegal goods sold on its platform, including a high percentage of products failing basic safety tests. The Commission has mandated Temu to submit a corrective action plan by August 28, 2026, to address these deficiencies under Article 75 of the DSA.

On the U.S. legislative front, a bipartisan coalition of Senators, including Commerce Committee Chair Ted Cruz (R-TX) and Ranking Member Maria Cantwell (D-WA), announced the introduction of the Protect College Sports Act of 2026. The bill aims to regulate name, image, and likeness (NIL) rights for collegiate athletes by establishing compensation disclosure thresholds, capping revenue sharing and agent fees, and guaranteeing at least one transfer opportunity without loss of NIL eligibility.

In judicial news, the U.S. Court of Appeals for the Federal Circuit issued a precedential ruling in Insulet Corp. v. EOFlow, Inc. The panel majority held that the six-year statute of limitations for trade secret claims began when Insulet had sufficient knowledge to state a claim, not when it had proof of misappropriation, thereby barring the claim. Circuit Judge Sharon Prost dissented, criticizing the majority for conflating discovery and inquiry-notice standards, which she argued improperly foreclosed Insulet’s claim.

The U.S. Copyright Office proposed amendments to its group registration option for frequently updated news websites. The amendments would permit deposit of materials identifying sufficient portions of works instead of complete website contents and clarify that eligible news websites must primarily report on current events with frequent updates.

Additional notable updates include the Federal Circuit’s reversal and remand in Versata Software, LLC v. Ford Motor Co., vacating a judgment that reduced trade secret damages to zero and ordering reconsideration of unjust enrichment damages based on licensing history. The World Intellectual Property Organization (WIPO) appointed Thailand’s Princess Sirivannavari Nariratana Rajakanya as Ambassador for Fashion and Design, recognizing her extensive IP portfolio exceeding 500 assets across 34 countries.

Corporate developments include Israeli website builder Wix announcing a 20% workforce reduction, citing rapid AI evolution and exchange rate challenges. NASA revealed plans for the first Moon Base missions, with a Blue Origin launch scheduled for fall 2026. The European Union Intellectual Property Office registered “Lenços de Namorados do Minho” as the first Portuguese craft geographical indication protecting traditional embroidered handkerchiefs.

In trademark litigation, Taylor Swift’s legal team filed a motion to dismiss claims by a Las Vegas performer alleging unauthorized association with Swift’s brand. Meanwhile, U.S. District Judge Stanley Blumenfeld denied motions to dismiss copyright infringement claims against Chinese AI firm MiniMax, allowing lawsuits from Disney, Warner Bros., and Universal to proceed over AI-generated content. The Ninth Circuit affirmed a preliminary injunction in a trademark dispute involving Taiwanese tea jelly brand HeChaLou against former licensees in Southern California.

These developments collectively underscore the dynamic interplay of IP enforcement, AI-related legal challenges, and evolving regulatory frameworks shaping the global intellectual property environment.