Anthropic To Pay $1.5 Billion in Landmark AI Copyright Case
Artificial intelligence startup Anthropic has agreed to pay $1.5 billion to settle a class-action lawsuit accusing the company of using pirated books to train its AI chatbot, Claude. If approved by a judge, the settlement could become a landmark moment in the ongoing debate over AI and copyright protections.
The lawsuit began last year when thriller novelist Andrea Bartz and nonfiction writers Charles Graeber and Kirk Wallace Johnson claimed Anthropic had downloaded millions of books from pirate sites, including Library Genesis and Books3. In June, U.S. District Judge William Alsup ruled that while training AI on copyrighted material is not automatically illegal, Anthropic had knowingly obtained pirated books.
Under the settlement terms, authors and publishers would receive roughly $3,000 for each of an estimated 500,000 affected works. Anthropic has also agreed to delete the original files it acquired. “As best as we can tell, it’s the largest copyright recovery ever,” said Justin Nelson, an attorney representing the plaintiffs. Legal experts noted that if the case had gone to trial, Anthropic could have faced damages in the billions ? enough to “potentially cripple or even put Anthropic out of business,” according to Thomas Long of Wolters Kluwer.
The Authors Guild, representing thousands of writers, called the settlement “an excellent result” and said it sends a clear message to AI companies that there are consequences for using pirated works. The Danish Rights Alliance, however, raised concerns that European authors may see little protection since U.S. copyright law does not cover their works. Experts say the case could set a precedent for future legal battles as musicians, publishers, and visual artists challenge AI companies for unauthorized use of creative work.
Judge Alsup rejected the proposed settlement on Sept. 8, citing incomplete details. He instructed lawyers to give clear notice to class members and prepare a claim form allowing authors to opt in or out. The settlement must also shield Anthropic from future lawsuits over the same issue. Lawyers were ordered to submit a final list of works by Sept. 15. The judge said the works list, class list, and claim form must be reviewed and approved by the court by Oct. 10 before preliminary approval can be considered.
The case highlights the growing tension between AI development and creative rights, showing how technology companies may now face major financial and legal consequences when using copyrighted materials without permission.
Sean Jung R&D Division Director teen/1758697339/1613367592
1. Who filed the class-action lawsuit against Anthropic, and what was the main accusation?
2. What did U.S. District Judge William Alsup rule about Anthropic’s use of pirated books for AI training?
3. How much will authors and publishers receive under the proposed $1.5 billion settlement, and what must Anthropic do with the original files?
4. Why do experts say this case could set an important precedent for AI companies and copyright protections?
1. Would you support authors if AI companies used their work without permission?
2. Would you take action if your own creative work was used without consent?
3. Can companies be fair if they pay for using pirated materials?
4. Can protecting creative rights make a difference for artists and writers?
Artificial intelligence startup Anthropic has agreed to pay $1.5 billion to settle a class-action lawsuit accusing the company of using pirated books to train its AI chatbot, Claude. If approved by a judge, the settlement could become a landmark moment in the ongoing debate over AI and copyright protections.
