AI Company Anthropic Reaches Historic $1.5 Billion Copyright Settlement with Authors
In a landmark decision, a federal judge has sanctioned a $1.5 billion settlement involving Anthropic, an artificial intelligence firm, compensating authors whose works were used without permission for AI training. The settlement mandates payments of approximately $3,000 per book to thousands of authors.
District Judge Araceli Martínez-Olguín affirmed the class-action settlement, labeling it as “meaningful relief” for the authors and publishers impacted by the unauthorized use. The decision affects over 482,000 books, with about 91% of these works having been claimed by the rightful authors or publishers, who will soon receive their payments.
Justin Nelson, attorney for the plaintiffs, remarked on the historical significance of the settlement, stating it represents “the largest known copyright recovery in history.” Nelson emphasized the intent to distribute the settlement funds to the affected class members swiftly.
The case initially received preliminary approval from U.S. District Judge William Alsup last September, prior to his retirement. Judge Alsup had previously issued a mixed ruling, determining that while training AI models on copyrighted material was not inherently illegal, Anthropic’s acquisition of millions of books from pirate websites was improper. More details on that decision can be found here.
Aparna Sridhar, Anthropic’s deputy general counsel, highlighted the precedent set by the ruling, asserting it demonstrated that “training AI on books is fair use under copyright law.” Sridhar expressed satisfaction with the outcome, noting, “We are pleased that more than 91% of authors and publishers covered by the settlement have claimed their share of the payment, and we’re looking forward to bringing this matter to a close.”
The lawsuit, initiated by bestselling thriller writer Andrea Bartz alongside two other authors in 2024, marks the first significant resolution in the ongoing series of AI-related copyright disputes still progressing through the legal system. For further information on the settlement, visit the full article here.
