Anthropic Faces Class-Action Lawsuit Over Alleged Copyright Infringement in AI Training

Reviewed byNidhi Govil

6 Sources

A federal judge has ruled that three authors can represent a nationwide class of writers in a lawsuit against AI startup Anthropic for allegedly using pirated books to train its AI system, potentially exposing the company to billions in damages.

Judge Approves Class-Action Status for Authors' Lawsuit Against Anthropic

In a significant development for the ongoing debate over AI and copyright law, U.S. District Judge William Alsup has ruled that three authors can bring a class-action lawsuit against AI startup Anthropic on behalf of all U.S. writers whose works were allegedly pirated for AI training purposes 123.

The Allegations and Potential Consequences

The lawsuit, filed by authors Andrea Bartz, Charles Graeber, and Kirk Wallace Johnson, accuses Anthropic of "Napster-style downloading" of millions of copyrighted works 1. According to the ruling, Anthropic may have illegally downloaded as many as 7 million books from pirate websites LibGen and PiLiMi in 2021 and 2022 234.

Source: BNN

Source: BNN

If the authors' case is successful, Anthropic could be liable for billions of dollars in damages 23. This potential financial impact underscores the high stakes of the legal battle and its implications for the AI industry as a whole.

The Broader Context of AI and Copyright

This case is part of a growing trend of legal challenges against AI companies over copyright infringement. Similar lawsuits have been filed against other tech giants, including OpenAI, Microsoft, and Meta Platforms 25. These legal actions reflect the ongoing tension between rapid AI advancement and the protection of intellectual property rights.

Previous Rulings and Fair Use Debate

In a previous ruling in June, Judge Alsup determined that Anthropic's AI training on legally-purchased books constituted fair use 1. However, he noted that the company would still need to face a separate trial for using allegedly pirated books 15.

The judge stated that while AI training might be considered transformative use, saving pirated copies of books to a "central library of all the books in the world" that may not necessarily be used for AI training could still violate copyright law 35.

Implications for the AI Industry

Source: Economic Times

Source: Economic Times

This ruling allows the authors to represent a broader group of writers whose works may have been used without permission or compensation to train Anthropic's chatbot, Claude 24. It rejects Anthropic's argument that identifying all impacted authors and eligible works would be too complex for a class-action suit 4.

The outcome of this case could have far-reaching implications for how AI companies approach data collection and training, potentially forcing them to reconsider their practices and relationships with content creators 15.

Anthropic's Response and Next Steps

As of the latest reports, spokespeople for Anthropic have not responded to requests for comment on the decision 235. The case is expected to proceed, with the potential to set important precedents for the intersection of AI development and copyright law.

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