Judge approves $1.5 billion settlement over AI company Anthropic’s alleged use of pirated books
A federal judge in San Francisco has given preliminary approval to a $1.5 billion settlement between artificial intelligence company Anthropic and authors who claim that nearly half a million books were illegally pirated to train chatbots. The settlement will pay authors and publishers approximately $3,000 for each pirated book covered by the agreement, totaling around 465,000 books.
U.S. District Judge William Alsup expressed satisfaction with the settlement, describing it as fair but acknowledging the complexity of distributing the funds to all parties involved. The settlement does not apply to future works and has been hailed as a significant step in holding AI developers accountable for copyright infringement.
Anthropic, based in San Francisco, welcomed the preliminary approval and emphasized its commitment to developing safe AI systems that benefit individuals and organizations. The company’s deputy general counsel, Aparna Sridhar, highlighted the court’s previous ruling that AI training constitutes transformative fair use and stated that the settlement resolves specific claims related to the acquisition of materials.
The Authors Guild praised the settlement as a milestone in protecting authors’ rights against AI companies’ unauthorized use of their works. The organization believes that the settlement sends a clear message to AI companies about the consequences of copyright infringement and encourages legal acquisition of books through licensing agreements.
The settlement process includes robust notification to all affected authors and publishers, allowing them to participate in the agreement or opt out to protect their rights. The parties involved have assured the judge that the process is transparent and fair, addressing concerns about potential pressure on authors to accept the settlement without full understanding.
In a previous ruling in June, Judge Alsup determined that training AI chatbots on copyrighted books was not illegal but found that Anthropic had obtained millions of books through pirate websites to enhance its chatbot. Bestselling author Andrea Bartz expressed support for the settlement, emphasizing the importance of protecting authors’ intellectual property rights.
During the court hearing, Judge Alsup announced his plans to retire from the bench by the end of the year, ending a distinguished tenure that began with his appointment by President Bill Clinton in 1999.
