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It will be interesting to see how this impacts the lawsuits against OpenAI, Meta, and Microsoft. Will they quickly try to settle for billions as well?

It’s not precedent setting but surely it’ll have an impact.

> A trial was scheduled to begin in December to determine how much Anthropic owed for the alleged piracy, with potential damages ranging into the hundreds of billions of dollars.

It has been admitted and Anthropic knew that this trial would totally bankrupt them had they said they were innocent and continued to fight the case.

But of course, there's too much money on the line, which means even though Anthropic settled (admitting guilt and profiting off of pirated books) they (Anthropic) knew there was no way they could win that case, and was not worth taking that risk.

> The pivotal fair-use question is still being debated in other AI copyright cases. Another San Francisco judge hearing a similar ongoing lawsuit against Meta ruled shortly after Alsup's decision that using copyrighted work without permission to train AI would be unlawful in "many circumstances."

The first of many.

Honestly, this is a steal for Anthropic.
To be very clear on this point - this is not related to model training.

It’s important in the fair use assessment to understand that the training itself is fair use, but the pirating of the books is the issue at hand here, and is what Anthropic “whoopsied” into in acquiring the training data.

Buying used copies of books, scanning them, and training on it is fine.

Rainbows End was prescient in many ways.

Its not settled whether AI training is fair use.
I keep thinking,if they bought ebooks,would that be fine or is this required to be paper books? If it doesn't work with ebooks, the world is going to be a nightmare
The RIAA should step in and get the money that publishers deserve. Talking millions per book and extra to make sure the pirates learned their lesson. And prison for the management.
Wait so they raised all that money just to give it to publishers?

Can only imagine the pitch, yes please give us billions of dollars. We are going to make a huge investment like paying of our lawsuits.

See kids? Its okay to steal if you steal more money than the fine costs.
The Silicon Valley dream: If you’re not getting sued left and right by people with every right to, you didn’t disrupt hard enough.
They also agreed to destroy the pirated books. I wonder how large of a portion of their training data comes from these shadow libraries, and if AI labs in countries that have made it clear they won't enforce anti-piracy laws against AI companies will get a substantial advantage by continuing to use shadow libraries.
This settlement I guess could be a landmark moment. $1.5 billion is a staggering figure and I hope it sends a clear signal that AI companies can’t just treat creative work as free training data.
This is sad for open source AI, piracy for the purpose of model training should also be fair use because otherwise only the big companies who can afford to pay off publishers like Anthropic will be able to do so. There is no way to buy billions of books just for model training, it simply can't happen.
I'm gonna say one thing. If you agree that something was unfairly taken from book authors, then the same thing was taken from people publishing on the web, and on a larger scale.

Book authors may see some settlement checks down the line. So might newspapers and other parties that can organize and throw enough $$$ at the problem. But I'll eat my hat if your average blogger ever sees a single cent.

For legal observers, Judge William Haskell Alsup’s razor-sharp distinction between usage and acquisition is a landmark precedent: it secures fair use for transformative generative AI while preserving compensation for copyright holders. In a just world, this balance would elevate him to the highest court of the land, but we are far from a just world.
Great. Which rich person is going to jail for breaking the law?
Isn't this basically what Spotify did originally?
Maybe I would think differently if I was a book author but I can't help but think that this is ugly but actually quite good for humanity in some perverse sense. I will never, ever, read 99.9% of these books presumably but I will use claude.
I wonder who will be the first country to make an exception to copyright law for model training libraries to attract tax revenue like Ireland did for tech companies in the EU. Japan is part of the way there, but you couldn't do a common crawl type thing. You could even make it a library of congress type of setup.
I thought 1.5 B is the penalty for one torrent, not for a couple million torrents.

At least if you're a regular citizen.

Settlement Terms (from the case pdf)

1. A Settlement Fund of at least $1.5 Billion: Anthropic has agreed to pay a minimum of $1.5 billion into a non-reversionary fund for the class members. With an estimated 500,000 copyrighted works in the class, this would amount to an approximate gross payment of $3,000 per work. If the final list of works exceeds 500,000, Anthropic will add $3,000 for each additional work.

2. Destruction of Datasets: Anthropic has committed to destroying the datasets it acquired from LibGen and PiLiMi, subject to any legal preservation requirements.

3. Limited Release of Claims: The settlement releases Anthropic only from past claims of infringement related to the works on the official "Works List" up to August 25, 2025. It does not cover any potential future infringements or any claims, past or future, related to infringing outputs generated by Anthropic's AI models.

Anyone have a link to the class action? I published a book and would love to know if I'm in the class.
One thing that comes to mind is...

Is there a way to make your content on the web "licensed" in a way where it is only free for human consumption?

I.e. effectively making the use of AI crawlers pirating, thus subject to the same kind of penalties here?

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Do they even have that much cash on hand?
Now how about Meta and their questionable means of acquiring tons of content?
> "The technology at issue was among the most transformative many of us will see in our lifetimes"

A judge making on a ruling based on his opinion of how transformative a technology will be doesn't inspire confidence. There's an equivocation on the word "transformative" here -- not just transformative in the fair use sense, but transformative as in world-changing, impactful, revolutionary. The latter shouldn't matter in a case like this.

> Companies and individuals who willfully infringe on copyright can face significantly higher damages — up to $150,000 per work

Settling for 2% is a steal.

> In June, the District Court issued a landmark ruling on A.I. development and copyright law, finding that Anthropic’s approach to training A.I. models constitutes fair use,” Aparna Sridhar, Anthropic’s deputy general counsel, said in a statement.

This is the highest-order bit, not the $1.5B in settlement. Anthropic's guilty of pirating.

Wait, I’m a published author, where’s my check