A federal judge has temporarily halted the approval of Anthropic’s $1.5 billion settlement concerning allegations of book piracy. Judge William Alsup expressed his concerns during a recent hearing about the potential arrangement that could disadvantage authors, suggesting it might be pushed upon them without proper negotiation, as reported by Bloomberg Law and the Associated Press.
Last week, Anthropic announced the landmark settlement in response to a class action lawsuit filed by U.S. authors, who claimed that the AI company trained its models using numerous copyrighted texts without permission. While Judge Alsup ruled that using purchased books for AI training might qualify as fair use, he indicated potential liability if the company used illegally downloaded materials.
Judge Alsup voiced his apprehensions about authors feeling pressured to accept unfavorable terms within the proposed settlement, necessitating his review of more details regarding the claims process. “I have an uneasy feeling about hangers-on with all this money on the table,” he remarked, according to Bloomberg Law.
The settlement would offer authors and publishers approximately $3,000 for each affected work. An attorney representing the authors indicated that around 465,000 books could receive coverage, but Judge Alsup requested a more definitive figure to ensure that Anthropic would not face additional lawsuits unexpectedly. He emphasized the need for “very good notice” to class members to keep them informed of the proceedings.
Maria Pallante, CEO of the Association of American Publishers, which supports the authors’ legal claims, criticized Judge Alsup’s handling of the situation, stating that he seemed to lack full comprehension of the publishing industry’s dynamics. She argued that class actions should prevent disputes rather than create new conflicts amongst those originally harmed. Justin Nelson, the authors’ attorney, reaffirmed their commitment to ensuring that “every single proper claim gets compensation” in the settlement.
Judge Alsup plans to revisit the proposed settlement at a follow-up hearing scheduled for September 25. He noted, “We’ll see if I can hold my nose and approve it,” according to the AP.
