Action: In August 2024, three authors sued AI developer Anthropic, arguing that the company had violated federal copyright law by using their books – copied from both pirated and purchased sources – in training its AI models. In July, Judge William Alsup, Senior District Judge in the Northern District of California, ruled that the company’s use of copyrighted books it had purchased to train its models constitutes fair use. However, Judge Alsup declined to grant Anthropic’s assertion that its use of pirated books it collected over the internet was also fair use and indicated that question would go to trial. The court also certified a class comprising the rights of owners for books downloaded from the pirate sites by Anthropic. On September 5, the company agreed to pay $1.5 billion to the class, which includes about 500,000 authors. However, Judge Alsup denied the motion to approve the settlement saying that it lacked sufficient detail about the claims process for the settlement and Anthropic’s legal liability for claims going forward. The court scheduled a September 25 hearing to review a revised settlement.Trusted Insights for What's Ahead®
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