Anthropic has made a groundbreaking move by agreeing to a settlement worth “at least” $1.5 billion, along with interest, to resolve a class-action lawsuit involving authors whose works were used to train its AI systems. Each author could receive around $3,000 for their contributions. Legal representatives for the plaintiffs have described this settlement as potentially the largest reported recovery in U.S. copyright litigation history.
The legal filing highlights the significance of this outcome, labeling it as “nothing short of remarkable.”
Final approval from the court is pending, with a hearing scheduled for September 8. Reports suggest that there may be a higher total payout, as Anthropic anticipates distributing funds for approximately 500,000 works. Should claims exceed this number, the company has committed to an additional payment of $3,000 for each extra work. Additionally, Anthropic is obligated to delete all original files and copies that were downloaded.
The settlement specifically addresses claims concerning past actions, not providing Anthropic with permission for any future AI training activities. It also preserves rights to claims arising after August 25, 2025.
This landmark agreement follows a year-long legal battle. In August 2024, authors Andrea Bartz, Charles Graeber, and Kirk Wallace Johnson accused Anthropic of building a multibillion-dollar enterprise by illegally utilizing hundreds of thousands of copyrighted works. Although a federal judge ruled in Anthropic’s favor on the legality of using legally purchased books for AI training, a separate trial is set to address claims of using pirated content. Furthermore, a California federal judge recently allowed the authors to pursue a class action on behalf of all U.S. writers affected by Anthropic’s practices.
Aparna Sridhar, Anthropic’s deputy general counsel, stated, “In June, the District Court issued a landmark ruling on AI development and copyright law, affirming that Anthropic’s method of training AI models falls under fair use. If this settlement is approved, it will resolve the plaintiffs’ remaining legacy claims. We remain focused on creating safe AI technologies that enhance human capabilities, foster scientific progress, and tackle intricate challenges.”
This settlement is particularly significant amid escalating legal actions against AI companies concerning copyright violations from various media entities, while other companies are engaging in partnerships with AI firms to access data for training systems.
Anthropic has faced various legal challenges in recent times. In the summer of 2024, Reddit filed a lawsuit against Anthropic, alleging that its bots accessed the platform more than 100,000 times despite claims of a ban. Additionally, Universal Music took action against the firm in 2023 for alleged broad infringement of their copyrighted song lyrics.
Authors and rights holders interested in the settlement can visit AnthropicCopyrightSettlement.com, where they can provide contact details for class counsel.
In the upcoming weeks, pending preliminary court approval, the site will include a comprehensive listing of all works included in the settlement and relevant information about options and rights for class members, according to the announcement.
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