Judge Halts Anthropic’s $1.5B Book Piracy Settlement
▼ Summary
– A federal judge has paused Anthropic’s $1.5 billion book piracy settlement due to concerns about the terms and fairness to authors.
– Judge Alsup rejected the deal over fears that class action lawyers were forcing an unfavorable agreement on authors without proper input.
– The judge also requested more information on the claims process and a precise count of eligible books to prevent future lawsuits.
– Under the proposed settlement, authors and publishers would receive about $3,000 per covered work, with an estimated 465,000 books affected.
– The settlement will be revisited at a hearing on September 25th, where the judge will decide whether to approve it after further review.
A federal judge has temporarily halted a $1.5 billion settlement between Anthropic and authors who accused the AI company of training its models on pirated books. Judge William Alsup expressed serious reservations about the proposed agreement, questioning whether class action attorneys were imposing terms that authors felt pressured to accept. The judge’s intervention underscores ongoing tensions between artificial intelligence developers and content creators over the use of copyrighted materials.
During a recent hearing, Judge Alsup rejected the settlement, citing concerns that authors were being strong-armed into a deal negotiated behind closed doors. He emphasized the need for greater transparency and a clearer claims process before moving forward. Alsup also requested more precise data on how many books were involved, warning that without solid numbers, Anthropic could face additional lawsuits in the future.
The case originated from allegations that Anthropic trained its AI systems on hundreds of thousands of copyrighted books without proper authorization. While the judge previously allowed the lawsuit to proceed on the grounds that using purchased books may constitute fair use, he indicated that the company could still be liable for works obtained illegally.
Under the proposed settlement, authors and publishers stood to receive approximately $3,000 per covered work, with an estimated 465,000 books potentially included. However, Alsup insisted that class members must receive clear and thorough notice to ensure they understand their rights and options.
Maria Pallante, CEO of the Association of American Publishers, criticized the judge’s decision, arguing that it reflected a misunderstanding of how the publishing industry operates. She emphasized that class actions should resolve disputes rather than create new ones. Meanwhile, the authors’ attorney, Justin Nelson, reaffirmed his commitment to ensuring that all legitimate claims receive compensation.
Judge Alsup has scheduled a follow-up hearing for September 25th to reevaluate the settlement. He remarked that he would need to “hold his nose” to approve the deal in its current form, signaling that significant revisions may be necessary before moving forward.
(Source: The Verge)
