A recent stipulated order in Encyclopedia Britannica, Inc. v. Perplexity AI, Inc. outlines how courts are approaching discovery involving highly sensitive AI system data. The Southern District of New York entered a detailed Data Inspection Protocol governing access to Perplexity’s proprietary repositories, including its retrieval-augmented generation database and logs of user queries and responses. The parties agreed that these data stores contain confidential and trade secret information requiring heightened protection beyond the existing protective order.

The protocol establishes strict controls on who may access Sensitive Repository Data, limiting review to outside counsel and approved experts, and prohibiting disclosure to in-house personnel. It also defines the RAG Database and Log Database as “Highly Confidential – Sensitive Repository Data,” recognizing that even publicly sourced content may warrant protection when compiled or organized in proprietary ways. The order sets out rigorous inspection procedures, including secure review environments, standalone computers without internet access, restrictions on electronic devices, and detailed logging requirements.

The protocol further requires destruction of all copies of Sensitive Repository Data after the litigation concludes and mandates certifications confirming destruction and non-use of information learned during review. While facilitating discovery, the court emphasized that Perplexity’s agreement to provide access does not expand the permissible scope of discovery in this or any other matter and preserves all objections related to relevance, proportionality, and burden.

If your organization is seeking support for navigating or negotiating Protective Orders to protect your data, our team can help. At CODISCOVR, we deliver client-focused, defensible, and scalable eDiscovery solutions using advanced technology and intelligent review practices to meet eDiscovery, document review, and information governance needs in a manner that reduces the risks and costs associated with electronically stored information (ESI). Reach out to Nicole Gill, Chair, Managing Member CODISCOVR. With almost a decade of experience, she manages complex and high-profile eDiscovery projects and routinely navigates data and privacy protection laws across many domestic and foreign jurisdictions.