Anthropic's $1.5 Billion Settlement Marks Landmark Victory for Authors in AI Copyright Battle

Judge in Anthropic AI Piracy Suit Approves $1.5B Settlement

A federal judge on Thursday approved a settlement between AI company Anthropic and a group of authors who sued over copyright and piracy concerns related to the training of generative artificial intelligence models. US District Judge William Alsup had previously held off on approving the $1.5 billion settlement after he expressed concerns about authors potentially "getting the shaft" and not having enough time to join the suit by the given deadlines, along with additional questions. The settlement will require Anthropic to pay $3,000 per book covered. Notices to authors will be sent via US mail, email, digital ads and more. Once the authors are notified and the claims process takes place, Alsup will consider final approval. Don't miss any of our unbiased tech content and lab-based reviews. Add CNET as a preferred Google source. The final list of all works included in the settlement was submitted on Sept. 15, and now that the settlement has been approved, more details, including how authors can file a claim for the suit, will follow soon. If you believe that your book or works are included in the settlement, you can provide your contact information at the Bartz settlement website. Authors included in the final list of books will be contacted by the claims administration team with more information. The case originated from copyright concerns, an important legal issue for AI companies and creators. Alsup ruled in June that Anthropic's use of copyrighted material was fair use, meaning it wasn't illegal, but the way the company obtained the books warranted further scrutiny. In the ruling, it was revealed that Anthropic used shadow libraries like LibGen and then systematically acquired and destroyed thousands of used books to scan into its own digital library. The proposed settlement stems from those piracy claims. Without significant legislation and regulation, court cases like these have become very important checks on AI companies' power. Each case influences the next. Two days after Anthropic's fair use victory, Meta won a similar case. While many AI copyright cases are still winding their way through the courts, Anthropic's rulings and settlement terms will become an important benchmark for future cases.

US judge preliminarily approves $1.5 billion Anthropic copyright settlement with authors

Sept 25 (Reuters) - A federal judge in California on Thursday preliminarily approved a landmark settlement of a copyright class action brought by a group of authors against artificial intelligence company Anthropic over the use of their work in its AI training, according to a press release from the authors' representatives. The proposed deal marks the first settlement in a string of lawsuits against tech companies including OpenAI, Microsoft (MSFT.O), opens new tab and Meta Platforms (META.O), opens new tab over their use of copyrighted material to train generative AI systems. U.S. District Judge William Alsup called the proposed class-action settlement fair during a hearing on Thursday, according to the release. Alsup had declined to approve the settlement earlier this month and asked the parties to address his additional concerns. Reporting by Blake Brittain in Washington; Editing by Leslie Adler, Alexia Garamfalvi and Chris Reese Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Boards, Policy & Regulation Blake Brittain Thomson Reuters Blake Brittain reports on intellectual property law, including patents, trademarks, copyrights and trade secrets, for Reuters Legal. He has previously written for Bloomberg Law and Thomson Reuters Practical Law and practiced as an attorney.

Judge approves $1.5 billion copyright settlement between AI company Anthropic and authors

SAN FRANCISCO (AP) -- A federal judge on Thursday approved a $1.5 billion settlement between artificial intelligence company Anthropic and authors who allege nearly half a million books had been illegally pirated to train chatbots. U.S. District Judge William Alsup issued the approval in San Francisco federal court Thursday after the two sides worked to address his concerns about the settlement, which will pay authors and publishers about $3,000 for each of the books covered by the agreement. It does not apply to future works. A Monday filing sought to convince the judge that the parties have set up a system designed to get out robust notice to all authors and publishers covered by the agreement, ensuring they get their cut of the pot if they want to sign off on the settlement or opt out to protect their legal rights moving forward. They also tried to assure him that the author and publishers group that cobbled the deal together are not doing any "back room" dealings that would hurt lesser-known authors. Alsup's main concern centered on how the claims process will be handled in an effort to ensure everyone eligible knows about it so the authors don't "get the shaft." He had set a September 22 deadline for submitting a claims form for him to review before Thursday's hearing to review the settlement again. The judge had raised worries about two big groups connected to the case -- the Authors Guild and the Association of American Publishers -- working "behind the scenes" in ways that could pressure some authors to accept the settlement without fully understanding it. Attorneys for the authors said in Monday's filing they believe the settlement will result in a high claims rate, respects existing contracts and is "consistent with due process" and the court's guidance. Alsup had dealt the case a mixed ruling in June, finding that training AI chatbots on copyrighted books wasn't illegal but that Anthropic wrongfully acquired millions of books through pirate websites to help improve its Claude chatbot. Bestselling thriller novelist Andrea Bartz, who sued Anthropic with two other authors last year, said in a court declaration ahead of the hearing that she strongly supports the settlement and will work to explain its significance to fellow writers. "Together, authors and publishers are sending a message to AI companies: You are not above the law, and our intellectual property isn't yours for the taking," she wrote. Alsup also said in the courtroom Thursday that he plans to step down from the bench by the end of the year. -- AP Technology Writer Matt O'Brien contributed to this story from Providence, Rhode Island.

Judge in Anthropic copyright case preliminarily approves $1.5 billion settlement with authors

A federal judge on Thursday preliminarily approved Anthropic's offer to pay $1.5 billion to settle a class action lawsuit with a group of authors, in what will be the largest publicly reported copyright recovery in history. The lawsuit, filed in the U.S. District Court for the Northern District of California, was brought last year by authors Andrea Bartz, Charles Graeber and Kirk Wallace Johnson. It alleged that Anthropic illegally downloaded books from pirated databases like Library Genesis and Pirate Library Mirror. "We are grateful for the Court's action today, which brings us one step closer to real accountability for Anthropic and puts all AI companies on notice they can't shortcut the law or override creators' rights," the authors said in a joint statement Thursday. Anthropic didn't immediately respond to CNBC's request for comment. The startup was founded by former OpenAI research executives, including Anthropic CEO Dario Amodei, in 2021. Anthropic, which is valued at $183 billion, is best known for its AI assistant Claude. AI startups and media companies have been closely following this lawsuit against Anthropic as they work to outline what copyright infringement means in the AI era. Anthropic initially proposed the $1.5 billion settlement earlier this month. The company said it would pay roughly $3,000 per book plus interest, and it agreed to destroy the datasets containing the allegedly pirated material. U.S. District Judge William Alsup initially expressed some reservations about Anthropic's offer, including concerns over how to ensure authors would be properly informed. Alsup ultimately approved the settlement after "several weeks of rigorous assessment and review," according to a release. Alsup will consider final approval of the settlement once the notice and claims processes are complete, the release said. Aparna Sridhar, Anthropic's deputy general counsel, said in a statement that the company is pleased with the determination, and that the settlement "simply resolves narrow claims about how certain materials were obtained." "The decision will allow us to focus on developing safe AI systems that help people and organizations extend their capabilities, advance scientific discovery, and solve complex problems," Sridhar said.

Anthropic to Pay $1.5 Billion in Landmark AI Copyright Settlement with Authors

A judge approved a $1.5 billion settlement between Anthropic and a group of U.S. authors who alleged that the company stole their work to train its AI models in a high-profile class-action lawsuit. U.S. District Judge William Alsup issued the preliminary approval of the settlement -- the first in lawsuits against AI firms over copyright use -- in a San Francisco federal court on Thursday. The lawsuit, filed in the U.S. District Court for the Northern District of California, was brought last year by a group of authors. It alleged that AI company Anthropic illegally downloaded nearly half a million books from pirated databases like Library Genesis and Pirate Library Mirror to train its AI systems without permission or compensation. Anthropic's $1.5 million settlement with the group of authors is the largest publicly reported copyright recovery in history and could lead more AI companies to pay rights holders for use of their works. According to a report by AP News, about 465,000 books are on the list of works pirated by Anthropic. The settlement will pay authors and publishers about $3,000 for each of the books covered by the agreement. Judge Alsup describes the settlement as "fair" but adds that distributing it to all parties will be "complicated." Meanwhile, the Association of American Publishers called the settlement a "major step in the right direction in holding AI developers accountable for reckless and unabashed infringement." The settlement does not apply to future works, and Anthropic also agreed to destroy the datasets containing the allegedly pirated material. AI companies have been watching the Anthropic case closely, seeing it as a test of how copyright law will be defined in the age of AI. In the lawsuit brought by the authors, Judge Alsop ruled that Anthropic made fair use of the authors' work to train Claude, but found that the company violated their rights by saving more than 7 million pirated books to a "central library" that would not necessarily be used for that purpose. Settlements of this kind do not set legal precedent but may shape the course of ongoing litigation in the fast-evolving field of AI and copyright. The $1.5 billion deal could mark a turning point, compelling other AI companies to compensate rights holders for the use of their works. Legal experts suggest the settlement may set the stage for future payments, whether through court rulings, negotiated settlements, or licensing agreements. The Anthropic case is also expected to become a reference point in ongoing copyright lawsuits against AI firms. Lawyers at Ropes & Gray say that plaintiffs in similar cases may point to the $3,000 per-work figure as a starting point for damages negotiations, and courts may look to the structure of this settlement when fashioning remedies. There are several ongoing cases against AI companies. A group of artists filed a class-action lawsuit against AI image generators Stable Diffusion and Midjourney, among others. Meanwhile, in June, Disney and Universal filed a joint lawsuit against Midjourney, accusing it of widespread copyright infringement in a case that could help redefine Hollywood's copyright rules. Warner Bros later joined the companies' lawsuit against the generative AI company.

Judge endorses Anthropic's $1.5 bn copyright settlement

A US judge on Thursday endorsed Anthropic's deal to pay $1.5 billion to settle a class action lawsuit over amassing a library of pirated books to train its artificial intelligence. "We are pleased the court has granted preliminary approval of the settlement," Anthropic deputy general counsel Aparna Sridhar said in response to an AFP query. "The decision will allow us to focus on developing safe AI systems." The settlement stems from a class action lawsuit filed by authors Andrea Bartz, Charles Graeber, and Kirk Wallace Johnson, who accused Anthropic of illegally copying their books to train Claude, the company's AI chatbot that rivals ChatGPT. In a partial victory for Anthropic, US District Court Judge William Alsup ruled in June that the company's training of its Claude AI models with books -- whether bought or pirated -- so transformed the works that it constituted "fair use" under the law. "The technology at issue was among the most transformative many of us will see in our lifetimes," Alsup wrote in his decision, comparing AI training to how humans learn by reading books. However, Alsup rejected Anthropic's bid for blanket protection, ruling that the company's practice of downloading millions of pirated books to build a permanent digital library was not justified by fair use protections. "As we've consistently maintained, the court's landmark June ruling that AI training constitutes transformative fair use remains intact," Anthropic's Sridhar said. "This settlement simply resolves narrow claims about how certain materials were obtained." According to legal filings, the settlement covers approximately 500,000 books, translating to roughly $3,000 per work -- four times the minimum statutory damages under US copyright law. Under the agreement, Anthropic will destroy the original pirated files and any copies made, though the company retains rights to books it legally purchased and scanned. "This settlement sends a strong message to the AI industry that there are serious consequences when they pirate authors' works to train their AI, robbing those least able to afford it," Authors Guild chief executive Mary Rasenberger said in a statement supporting the deal. San Francisco-based Anthropic announced early in September that it raised $13 billion in a funding round valuing the AI startup at $183 billion. Anthropic competes with generative artificial intelligence offerings from Google, OpenAI, Meta, and Microsoft in a race attracting billions of dollars in investment and creating a voracious need for data such as books on which to train models.

Judge endorses Anthropic's $1.5 bn copyright settlement

San Francisco (United States) (AFP) - A US judge on Thursday endorsed Anthropic's deal to pay $1.5 billion to settle a class action lawsuit over amassing a library of pirated books to train its artificial intelligence. "We are pleased the court has granted preliminary approval of the settlement," Anthropic deputy general counsel Aparna Sridhar said in response to an AFP query. "The decision will allow us to focus on developing safe AI systems." The settlement stems from a class action lawsuit filed by authors Andrea Bartz, Charles Graeber, and Kirk Wallace Johnson, who accused Anthropic of illegally copying their books to train Claude, the company's AI chatbot that rivals ChatGPT. In a partial victory for Anthropic, US District Court Judge William Alsup ruled in June that the company's training of its Claude AI models with books -- whether bought or pirated -- so transformed the works that it constituted "fair use" under the law. "The technology at issue was among the most transformative many of us will see in our lifetimes," Alsup wrote in his decision, comparing AI training to how humans learn by reading books. However, Alsup rejected Anthropic's bid for blanket protection, ruling that the company's practice of downloading millions of pirated books to build a permanent digital library was not justified by fair use protections. "As we've consistently maintained, the court's landmark June ruling that AI training constitutes transformative fair use remains intact," Anthropic's Sridhar said. "This settlement simply resolves narrow claims about how certain materials were obtained." According to legal filings, the settlement covers approximately 500,000 books, translating to roughly $3,000 per work -- four times the minimum statutory damages under US copyright law. Under the agreement, Anthropic will destroy the original pirated files and any copies made, though the company retains rights to books it legally purchased and scanned. "This settlement sends a strong message to the AI industry that there are serious consequences when they pirate authors' works to train their AI, robbing those least able to afford it," Authors Guild chief executive Mary Rasenberger said in a statement supporting the deal. San Francisco-based Anthropic announced early in September that it raised $13 billion in a funding round valuing the AI startup at $183 billion. Anthropic competes with generative artificial intelligence offerings from Google, OpenAI, Meta, and Microsoft in a race attracting billions of dollars in investment and creating a voracious need for data such as books on which to train models.

Judge approves $1.5 billion settlement over AI company's alleged use of pirated books

A federal judge on Thursday approved a $1.5 billion settlement between artificial intelligence company Anthropic and authors who allege nearly half a million books had been illegally pirated to train chatbots. U.S. District Judge William Alsup issued the preliminary approval in San Francisco federal court Thursday after the two sides worked to address his concerns about the settlement, which will pay authors and publishers about $3,000 for each of the books covered by the agreement. It does not apply to future works. "This is a fair settlement," Alsup said, though he added that distributing it to all parties will be "complicated." About 465,000 books are on the list of works pirated by Anthropic, according to Justin Nelson, an attorney for the authors. "We have some of the best lawyers in America in this courtroom and if anyone can do it, you can," Alsup said. The Association of American Publishers called the settlement a "major step in the right direction in holding AI developers accountable for reckless and unabashed infringement." "Anthropic is hardly a special case when it comes to infringement. Every other major AI developer has trained their models on the backs of authors and publishers, and many have sourced those works from the most notorious infringing sites in the world," said Maria A. Pallante, president and CEO of the publisher group. San Francisco-based Anthropic said it is pleased with the preliminary approval. "The decision will allow us to focus on developing safe AI systems that help people and organizations extend their capabilities, advance scientific discovery, and solve complex problems. As we've consistently maintained, the court's landmark June ruling that AI training constitutes transformative fair use remains intact. This settlement simply resolves narrow claims about how certain materials were obtained," said Aparna Sridhar, deputy general counsel at Anthropic. The Authors Guild, meanwhile, said the settlement "marks a milestone in authors' fights against AI companies' theft of their works. It sends a clear signal to AI companies that infringement of authors' rights comes at a steep price and will undoubtedly push AI companies towards acquiring the books they want legally, through licensing." A Monday filing sought to convince the judge that the parties have set up a system designed to get out robust notice to all authors and publishers covered by the agreement, ensuring they get their cut of the pot if they want to sign off on the settlement or opt out to protect their legal rights moving forward. They also tried to assure him that the author and publishers group that cobbled the deal together are not doing any "back room" dealings that would hurt lesser-known authors. Alsup's main concern centered on how the claims process will be handled in an effort to ensure everyone eligible knows about it so the authors don't "get the shaft." He had set a Sept. 22 deadline for submitting a claims form for him to review before Thursday's hearing to review the settlement again. The judge had raised worries about two big groups connected to the case -- the Authors Guild and the Association of American Publishers -- working "behind the scenes" in ways that could pressure some authors to accept the settlement without fully understanding it. Attorneys for the authors said in Monday's filing they believe the settlement will result in a high claims rate, respects existing contracts and is "consistent with due process" and the court's guidance. Alsup had dealt the case a mixed ruling in June, finding that training AI chatbots on copyrighted books wasn't illegal but that Anthropic wrongfully acquired millions of books through pirate websites to help improve its Claude chatbot. Bestselling thriller novelist Andrea Bartz, who sued Anthropic with two other authors last year, said in a court declaration ahead of the hearing that she strongly supports the settlement and will work to explain its significance to fellow writers. "Together, authors and publishers are sending a message to AI companies: You are not above the law, and our intellectual property isn't yours for the taking," she wrote. Alsup also said in the courtroom Thursday that he plans to step down from the bench by the end of the year. President Bill Clinton nominated him for the federal bench in 1999.

$1.5 billion Anthropic AI settlement gets preliminary OK from U.S. judge

In the lawsuit, authors claimed almost half a million books had been illegally pirated to train chatbots. A federal judge on Thursday approved a $1.5 billion settlement between artificial intelligence company Anthropic and authors who allege nearly half a million books had been illegally pirated to train chatbots. U.S. District Judge William Alsup issued the preliminary approval in San Francisco federal court Thursday after the two sides worked to address his concerns about the settlement, which will pay authors and publishers about $3,000 for each of the books covered by the agreement. It does not apply to future works. "This is a fair settlement," Alsup said, though he added that distributing it to all parties will be "complicated." About 465,000 books are on the list of works pirated by Anthropic, according to Justin Nelson, an attorney for the authors. "We have some of the best lawyers in America in this courtroom and if anyone can do it, you can," Alsup said. The Association of American Publishers called the settlement a "major step in the right direction in holding AI developers accountable for reckless and unabashed infringement." "Anthropic is hardly a special case when it comes to infringement. Every other major AI developer has trained their models on the backs of authors and publishers, and many have sourced those works from the most notorious infringing sites in the world," said Maria A. Pallante, president and CEO of the publisher group. San Francisco-based Anthropic said it is pleased with the preliminary approval. "The decision will allow us to focus on developing safe AI systems that help people and organizations extend their capabilities, advance scientific discovery, and solve complex problems. As we've consistently maintained, the court's landmark June ruling that AI training constitutes transformative fair use remains intact. This settlement simply resolves narrow claims about how certain materials were obtained," said Aparna Sridhar, deputy general counsel at Anthropic. The Authors Guild, meanwhile, said the settlement "marks a milestone in authors' fights against AI companies' theft of their works. It sends a clear signal to AI companies that infringement of authors' rights comes at a steep price and will undoubtedly push AI companies towards acquiring the books they want legally, through licensing." A Monday filing sought to convince the judge that the parties have set up a system designed to get out robust notice to all authors and publishers covered by the agreement, ensuring they get their cut of the pot if they want to sign off on the settlement or opt out to protect their legal rights moving forward. They also tried to assure him that the author and publishers group that cobbled the deal together are not doing any "back room" dealings that would hurt lesser-known authors. Alsup's main concern centered on how the claims process will be handled in an effort to ensure everyone eligible knows about it so the authors don't "get the shaft." He had set a September 22 deadline for submitting a claims form for him to review before Thursday's hearing to review the settlement again. The judge had raised worries about two big groups connected to the case -- the Authors Guild and the Association of American Publishers -- working "behind the scenes" in ways that could pressure some authors to accept the settlement without fully understanding it. Attorneys for the authors said in Monday's filing they believe the settlement will result in a high claims rate, respects existing contracts and is "consistent with due process" and the court's guidance. Alsup had dealt the case a mixed ruling in June, finding that training AI chatbots on copyrighted books wasn't illegal but that Anthropic wrongfully acquired millions of books through pirate websites to help improve its Claude chatbot. Bestselling thriller novelist Andrea Bartz, who sued Anthropic with two other authors last year, said in a court declaration ahead of the hearing that she strongly supports the settlement and will work to explain its significance to fellow writers. "Together, authors and publishers are sending a message to AI companies: You are not above the law, and our intellectual property isn't yours for the taking," she wrote. Alsup also said in the courtroom Thursday that he plans to step down from the bench by the end of the year. President Bill Clinton nominated him for the federal bench in 1999. -- AP Technology Writer Matt O'Brien contributed to this story from Providence, Rhode Island.

$1.5bn Anthropic settlement gets preliminary approval

'This is a fair settlement,' the presiding judge said. A US district judge has preliminarily approved Anthropic's $1.5bn settlement with book authors after postponing the decision over a lack of clear information just weeks earlier. Yesterday (25 September), US District Judge William Alsup also approved the plaintiffs' proposed plan to allocate settlement funds and resolve any competing claims to the same work. "This is a fair settlement," the judge said. A final approval of the settlement is expected after the notice and claims process has run. The settlement, which comes after a year-long lawsuit, is touted to be the largest payout in the history of US copyright cases. The deal would see the class of authors, whose works were downloaded by Anthropic from shadow libraries with pirated content such as LibGen and PiLiMi, be paid $3,000 per work. The list of works included in the class currently stands at more than 482,000. Aside from paying authors, the agreement requires Anthropic to destroy the original illegal downloads and any of its copies. The company has certified that it did not use any of the illegally acquired books to train its commercial AI products. In exchange, Anthropic will be off the hook for illegally downloading the books contained in the settlement works list, but will still be liable for similar future conduct, as well as for any claims based on alleged copyright infringing outputs from its AI models. The parties struck a deal in August after Anthropic reportedly decided to avoid paying up to $1trn in statutory damages at a December trial. But earlier this year, Anthropic had told the courts that even a settlement could kill the $183bn company. In a joint statement yesterday, the plaintiffs' lawyers said, "We are grateful for the Court's action today, which brings us one step closer to real accountability for Anthropic and puts all AI companies on notice they can't shortcut the law or override creators' rights." The settlement deal was postponed earlier this month after judge Alsup felt "disappointed" that the lawyers left vital information such as the list of works, the list of authors, as well as the claim form to be ironed out in the future. Don't miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic's digest of need-to-know sci-tech news.

Judge approves $1.5 billion copyright settlement between AI company Anthropic and authors

SAN FRANCISCO (AP) -- A federal judge on Thursday approved a $1.5 billion settlement between artificial intelligence company Anthropic and authors who allege nearly half a million books had been illegally pirated to train chatbots. U.S. District Judge William Alsup issued the approval in San Francisco federal court Thursday after the two sides worked to address his concerns about the settlement, which will pay authors and publishers about $3,000 for each of the books covered by the agreement. It does not apply to future works. A Monday filing sought to convince the judge that the parties have set up a system designed to get out robust notice to all authors and publishers covered by the agreement, ensuring they get their cut of the pot if they want to sign off on the settlement or opt out to protect their legal rights moving forward. They also tried to assure him that the author and publishers group that cobbled the deal together are not doing any "back room" dealings that would hurt lesser-known authors. Alsup's main concern centered on how the claims process will be handled in an effort to ensure everyone eligible knows about it so the authors don't "get the shaft." He had set a September 22 deadline for submitting a claims form for him to review before Thursday's hearing to review the settlement again. The judge had raised worries about two big groups connected to the case -- the Authors Guild and the Association of American Publishers -- working "behind the scenes" in ways that could pressure some authors to accept the settlement without fully understanding it. Attorneys for the authors said in Monday's filing they believe the settlement will result in a high claims rate, respects existing contracts and is "consistent with due process" and the court's guidance. Alsup had dealt the case a mixed ruling in June, finding that training AI chatbots on copyrighted books wasn't illegal but that Anthropic wrongfully acquired millions of books through pirate websites to help improve its Claude chatbot. Bestselling thriller novelist Andrea Bartz, who sued Anthropic with two other authors last year, said in a court declaration ahead of the hearing that she strongly supports the settlement and will work to explain its significance to fellow writers. "Together, authors and publishers are sending a message to AI companies: You are not above the law, and our intellectual property isn't yours for the taking," she wrote. Alsup also said in the courtroom Thursday that he plans to step down from the bench by the end of the year. -- AP Technology Writer Matt O'Brien contributed to this story from Providence, Rhode Island.

Judge approves $1.5B copyright settlement between AI company Anthropic and authors

SAN FRANCISCO -- A federal judge on Thursday approved a $1.5 billion settlement between artificial intelligence company Anthropic and authors who allege nearly half a million books had been illegally pirated to train chatbots. U.S. District Judge William Alsup issued the approval in San Francisco federal court Thursday after the two sides worked to address his concerns about the settlement, which will pay authors and publishers about $3,000 for each of the books covered by the agreement. It does not apply to future works. A Monday filing sought to convince the judge that the parties have set up a system designed to get out robust notice to all authors and publishers covered by the agreement, ensuring they get their cut of the pot if they want to sign off on the settlement or opt out to protect their legal rights moving forward. They also tried to assure him that the author and publishers group that cobbled the deal together are not doing any "back room" dealings that would hurt lesser-known authors. Alsup's main concern centered on how the claims process will be handled in an effort to ensure everyone eligible knows about it so the authors don't "get the shaft." He had set a September 22 deadline for submitting a claims form for him to review before Thursday's hearing to review the settlement again. The judge had raised worries about two big groups connected to the case -- the Authors Guild and the Association of American Publishers -- working "behind the scenes" in ways that could pressure some authors to accept the settlement without fully understanding it. Attorneys for the authors said in Monday's filing they believe the settlement will result in a high claims rate, respects existing contracts and is "consistent with due process" and the court's guidance. Alsup had dealt the case a mixed ruling in June, finding that training AI chatbots on copyrighted books wasn't illegal but that Anthropic wrongfully acquired millions of books through pirate websites to help improve its Claude chatbot. Bestselling thriller novelist Andrea Bartz, who sued Anthropic with two other authors last year, said in a court declaration ahead of the hearing that she strongly supports the settlement and will work to explain its significance to fellow writers. "Together, authors and publishers are sending a message to AI companies: You are not above the law, and our intellectual property isn't yours for the taking," she wrote. Alsup also said in the courtroom Thursday that he plans to step down from the bench by the end of the year. -- AP Technology Writer Matt O'Brien contributed to this story from Providence, Rhode Island.

The AI Giants Are Going to Owe You Money

Last week, a judge overseeing a landmark class-action lawsuit by authors against the AI company Anthropic, which involved training AI models on stolen work, approved a $1.5 billion settlement. While the settlement is the largest of its kind, Anthropic is not the only company to be sued over how its models are trained. Virtually every maker of large language models is facing a similar lawsuit: Anthropic's biggest competitor, OpenAI, is being sued by authors, news publishers, and visual artists who claim the company trained its models on stolen work; Suno, the music-generation language model, is being sued by record labels for alleged copyright infringement; and ElevenLabs, an AI company that creates realistic voice models, is being sued by voice actors who claim their voices were used to train the company's algorithm without their permission. At first glance, Anthropic's landmark settlement may seem like a win for the creatives who are suing AI companies, but on closer inspection, it's not as clear-cut. The judge in the Northern District of California ruled that, while Anthropic was liable for illegally downloading copyrighted work, the actual act of training a model on copyrighted material qualifies as fair use. Seemingly anthropomorphizing Anthropic's Claude, the judge wrote, "like any reader aspiring to be a writer, Anthropic's LLMs trained upon works not to race ahead and replicate or supplant them -- but to turn a hard corner and create something different."

Judge Approves $1.5 Billion Copyright Settlement Between AI Company Anthropic and Authors

SAN FRANCISCO (AP) -- A federal judge on Thursday approved a $1.5 billion settlement between artificial intelligence company Anthropic and authors who allege nearly half a million books had been illegally pirated to train chatbots. U.S. District Judge William Alsup issued the approval in San Francisco federal court Thursday after the two sides worked to address his concerns about the settlement, which will pay authors and publishers about $3,000 for each of the books covered by the agreement. It does not apply to future works. A Monday filing sought to convince the judge that the parties have set up a system designed to get out robust notice to all authors and publishers covered by the agreement, ensuring they get their cut of the pot if they want to sign off on the settlement or opt out to protect their legal rights moving forward. They also tried to assure him that the author and publishers group that cobbled the deal together are not doing any "back room" dealings that would hurt lesser-known authors. Alsup's main concern centered on how the claims process will be handled in an effort to ensure everyone eligible knows about it so the authors don't "get the shaft." He had set a September 22 deadline for submitting a claims form for him to review before Thursday's hearing to review the settlement again. The judge had raised worries about two big groups connected to the case -- the Authors Guild and the Association of American Publishers -- working "behind the scenes" in ways that could pressure some authors to accept the settlement without fully understanding it. Attorneys for the authors said in Monday's filing they believe the settlement will result in a high claims rate, respects existing contracts and is "consistent with due process" and the court's guidance. Alsup had dealt the case a mixed ruling in June, finding that training AI chatbots on copyrighted books wasn't illegal but that Anthropic wrongfully acquired millions of books through pirate websites to help improve its Claude chatbot. Bestselling thriller novelist Andrea Bartz, who sued Anthropic with two other authors last year, said in a court declaration ahead of the hearing that she strongly supports the settlement and will work to explain its significance to fellow writers. "Together, authors and publishers are sending a message to AI companies: You are not above the law, and our intellectual property isn't yours for the taking," she wrote. Alsup also said in the courtroom Thursday that he plans to step down from the bench by the end of the year. -- AP Technology Writer Matt O'Brien contributed to this story from Providence, Rhode Island.

Judge approves $1.5 billion copyright settlement between AI company Anthropic and authors - The Economic Times

US District Judge William Alsup issued the preliminary approval in San Francisco federal court Thursday after the two sides worked to address his concerns about the settlement, which will pay authors and publishers about $3,000 for each of the books covered by the agreement.A federal judge on Thursday approved a $1.5 billion settlement between artificial intelligence company Anthropic and authors who allege nearly half a million books had been illegally pirated to train chatbots. US District Judge William Alsup issued the preliminary approval in San Francisco federal court Thursday after the two sides worked to address his concerns about the settlement, which will pay authors and publishers about $3,000 for each of the books covered by the agreement. It does not apply to future works. "This is a fair settlement," Alsup said, though he added that distributing it to all parties will be "complicated." About 465,000 books are on the list of works pirated by Anthropic, according to Justin Nelson, an attorney for the authors. "We have some of the best lawyers in America in this courtroom and if anyone can do it, you can," Alsup said. The American Association of Publishers called the settlement a "major step in the right direction in holding AI developers accountable for reckless and unabashed infringement." "Anthropic is hardly a special case when it comes to infringement. Every other major AI developer has trained their models on the backs of authors and publishers, and many have sourced those works from the most notorious infringing sites in the world," said Maria A. Pallante, president and CEO of the publisher group. San Francisco-based Anthropic said it is pleased with the preliminary approval. "The decision will allow us to focus on developing safe AI systems that help people and organizations extend their capabilities, advance scientific discovery, and solve complex problems. As we've consistently maintained, the court's landmark June ruling that AI training constitutes transformative fair use remains intact. This settlement simply resolves narrow claims about how certain materials were obtained," said Aparna Sridhar, deputy general counsel at Anthropic. A Monday filing sought to convince the judge that the parties have set up a system designed to get out robust notice to all authors and publishers covered by the agreement, ensuring they get their cut of the pot if they want to sign off on the settlement or opt out to protect their legal rights moving forward. They also tried to assure him that the author and publishers group that cobbled the deal together are not doing any "back room" dealings that would hurt lesser-known authors. Alsup's main concern centered on how the claims process will be handled in an effort to ensure everyone eligible knows about it so the authors don't "get the shaft." He had set a September 22 deadline for submitting a claims form for him to review before Thursday's hearing to review the settlement again. The judge had raised worries about two big groups connected to the case - the Authors Guild and the Association of American Publishers - working "behind the scenes" in ways that could pressure some authors to accept the settlement without fully understanding it. Attorneys for the authors said in Monday's filing they believe the settlement will result in a high claims rate, respects existing contracts and is "consistent with due process" and the court's guidance. Alsup had dealt the case a mixed ruling in June, finding that training AI chatbots on copyrighted books wasn't illegal but that Anthropic wrongfully acquired millions of books through pirate websites to help improve its Claude chatbot. Bestselling thriller novelist Andrea Bartz, who sued Anthropic with two other authors last year, said in a court declaration ahead of the hearing that she strongly supports the settlement and will work to explain its significance to fellow writers. "Together, authors and publishers are sending a message to AI companies: You are not above the law, and our intellectual property isn't yours for the taking," she wrote. Alsup also said in the courtroom Thursday that he plans to step down from the bench by the end of the year. President Bill Clinton nominated him for the federal bench in 1999.

Anthropic's $1.5 Billion Settlement Over AI Training On Pirated Books Sets Precedent As Lawsuits Against OpenAI, Meta Loom - Alphabet (NASDAQ:GOOG), Amazon.com (NASDAQ:AMZN)

A federal judge in California has given preliminary approval to Amazon.com Inc. (NASDAQ: AMZN) and Alphabet Inc. (NASDAQ: GOOG) (NASDAQ: GOOGL)-backed Anthropic's $1.5 billion settlement with authors who accused the AI company of using millions of pirated books to train its Claude chatbot. Judge Backs Landmark Settlement On Thursday, U.S. District Judge William Alsup called the proposed deal fair during a hearing, giving it preliminary approval after initially raising concerns earlier this month, reported Reuters. Final approval will be determined once affected authors are notified and given the chance to submit claims. The settlement is the first major resolution in a string of lawsuits targeting AI developers for their use of copyrighted works, setting what industry experts say could be a precedent for future cases. Previously, Judge Alsup determined the company infringed their rights by storing over 7 million pirated books in a "central library" that wasn't strictly intended for training purposes. See Also: Elizabeth Warren Warns About The Walgreens Takeover, Saying 'Private Equity Has A Record Of Running Companies Into The Ground' Plaintiffs Andrea Bartz, Charles Graeber and Kirk Wallace Johnson said the ruling "brings us one step closer to real accountability for Anthropic and puts all AI companies on notice they can't shortcut the law or override creators' rights." Originally headed for trial in December, the case carried potential damages in the hundreds of billions of dollars. Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox. Anthropic Hits $183 Billion Valuation With $13 Billion Funding Earlier this month, Anthropic's valuation skyrocketed to $183 billion after securing a $13 billion funding round, led by Fidelity Management & Research and Lightspeed Venture Partners. The company's run-rate revenue has also climbed sharply, rising from $1 billion at the start of 2025 to more than $5 billion by August. The aforementioned case underscores growing legal risks for companies like OpenAI, Microsoft Corp. (NASDAQ: MSFT) and Meta Platforms Inc. (NASDAQ: META), which face similar lawsuits from authors, artists and publishers. Check out more of Benzinga's Consumer Tech coverage by following this link. Read Next: Amazon Debuts Lens Live, A Real-Time Visual Search To Rival Google Lens, Pinterest Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo Courtesy: gguy on Shutterstock.com AMZNAmazon.com Inc$218.27-0.88%OverviewGOOGAlphabet Inc$248.700.35%GOOGLAlphabet Inc$247.940.32%METAMeta Platforms Inc$748.00-1.66%MSFTMicrosoft Corp$506.44-0.73%Market News and Data brought to you by Benzinga APIs

US judge preliminarily approves $1.5 billion Anthropic copyright settlement

(Reuters) -A federal judge in California on Thursday preliminarily approved a landmark $1.5 billion settlement of a copyright class action brought by a group of authors against artificial intelligence company Anthropic, according to the authors' representatives. The proposed deal marks the first settlement in a string of lawsuits against tech companies including OpenAI, Microsoft and Meta Platforms over their use of copyrighted material to train generative AI systems. U.S. District Judge William Alsup called the proposed class-action settlement fair during a hearing on Thursday, according to a statement from the authors' representatives. Alsup had declined to approve the settlement earlier this month and asked the parties to answer several questions. Alsup will decide whether to give the settlement his final approval after notifying affected authors and giving them a chance to file claims. Plaintiffs Andrea Bartz, Charles Graeber and Kirk Wallace Johnson said in a statement that Alsup's decision "brings us one step closer to real accountability for Anthropic and puts all AI companies on notice they can't shortcut the law or override creators' rights." Maria Pallante, the president of the publishing-industry trade group the Association of American Publishers, called the settlement "a major step in the right direction in holding AI developers accountable for reckless and unabashed infringement." The writers' allegations echoed dozens of other lawsuits that have been brought by authors, news outlets, visual artists and others who say that tech companies stole their work to use in AI training. Anthropic deputy general counsel Aparna Sridhar said that the decision will allow the company to "focus on developing safe AI systems that help people and organizations extend their capabilities, advance scientific discovery, and solve complex problems." Bartz, Graeber and Johnson filed the class action against Anthropic last year. They argued that the company, which is backed by Amazon and Alphabet, unlawfully used millions of pirated books to teach its AI assistant Claude to respond to human prompts. Alsup ruled in June that Anthropic made fair use of the authors' work to train Claude, but found that the company violated their rights by saving more than 7 million pirated books to a "central library" that would not necessarily be used for that purpose. A trial was scheduled to begin in December to determine how much Anthropic owed for the alleged piracy, with potential damages ranging into the hundreds of billions of dollars. (Reporting by Blake Brittain in Washington; Editing by Alexia Garamfalvi, Chris Reese and Lisa Shumaker)