"Leading AI startup Anthropic, which just raised $13 billion earlier this month at a $183 billion valuation, has agreed to settle a class action lawsuit with a group of authors and publishers for at least $1.5 billion. On Friday, the startup proposed paying about $3,000 per book to 500,000 authors. It would be the largest copyright payout in history, if approved, per The New York Times."
"The case was filed last year by authors Andrea Bartz, Charles Graeber, and Kirk Wallace Johnson,who alleged in the class action suit Bartz v. Anthropic that Anthropic had illegally used their work to train its AI models, downloading copyrighted books for free from pirated datasets. The ruling could also influence the more than 40 other copyright lawsuits filed against AI companies across the country."
"The judge ruled that Anthropic's AI training with copyrighted books was "fair use" because it was "transformative" and turned the books into something new. "Like any reader aspiring to be a writer, Anthropic's [AI] trained upon works not to race ahead and replicate or supplant them - but to turn a hard corner and create something different," Alsup wrote in the ruling."
Anthropic agreed to a proposed settlement of at least $1.5 billion, offering about $3,000 per book to roughly 500,000 authors. The payout would be the largest copyright settlement if approved. Authors Andrea Bartz, Charles Graeber, and Kirk Wallace Johnson filed Bartz v. Anthropic alleging that Anthropic illegally used copyrighted books downloaded from pirated datasets to train its AI. Judge William Alsup ruled in June that training with copyrighted books was "fair use" as transformative, but also found that Anthropic illegally downloaded countless books from sites like Pirate Library Mirror and Library Genesis and that executives were aware.
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