"The Anthropic settlement shows just how costly copyright missteps can be in AI development. Anthropic has agreed to a $1.5B settlement after a court found that keeping a permanent library of pirated books was not fair use-even though training its AI model on those same works was. On this episode of The Briefing, Weintraub attorneys Scott Hervey and Matt Sugarman discuss the ruling, the settlement, and what it means for future copyright claims against AI companies."
"Anthropic has agreed to a $1.5B settlement after a court found that keeping a permanent library of pirated books was not fair use-even though training its AI model on those same works was. On this episode of The Briefing, Weintraub attorneys Scott Hervey and Matt Sugarman discuss the ruling, the settlement, and what it means for future copyright claims against AI companies. Watch this episode on YouTube or listen to this podcast episode here."
Anthropic accepted a $1.5 billion settlement after a court determined that maintaining a permanent library of pirated books did not qualify as fair use. The court also found that training an AI model on those same works could constitute fair use, creating a legal distinction between archival retention and model training. The outcome highlights significant financial and legal risk from improper data retention practices. The ruling increases exposure for AI companies to copyright claims and is likely to drive greater reliance on licensing, stricter data hygiene, and revised ingest and storage policies for training materials.
Read at The IP Law Blog
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