Judge Raises Questions Over $1.5 Billion Anthropic Settlement in Copyright Lawsuit
Introduction
A federal judge in San Francisco has declined to approve a $1.5 billion settlement between artificial intelligence company Anthropic and a class of authors suing it for copyright infringement.
Factual Background
The lawsuit was filed by authors Andi Bartz, Kirk Johnson, and Charles Graeber against Anthropic, alleging that the company unlawfully used millions of pirated books to train its AI assistant Claude. The proposed settlement marked the first settlement in a string of lawsuits targeting tech companies over their alleged misuse of copyrighted material to train generative AI systems.
Procedural Background
The parties announced a settlement on Friday, but U.S. District Judge William Alsup expressed concerns and ordered both sides to provide more details. The judge was “disappointed” that the parties had left important questions about the settlement unanswered.
Issues
The main issues raised by the judge include the completeness of the list of works and authors affected by the settlement and the administratively challenging claims process.
Contentions of the Parties
Authors: The authors contend that the settlement is an important step in holding AI companies accountable for their use of copyrighted material. Authors Guild CEO Mary Rasenberger said she was “shocked by the court’s offhand suggestion” that the groups were “working behind the scenes in ways that could pressure authors.”
Anthropic: Anthropic has not commented on the judge’s decision.
Reasoning and Analysis
The judge’s decision highlights the complexity of settlements involving AI companies and copyright infringement. The judge’s concerns about the completeness of the list of works and authors affected by the settlement and the claims process need to be addressed before the settlement can be approved.
Implications
The outcome of this case could have significant implications for the use of copyrighted material in AI training models. The settlement could set a precedent for future cases involving AI companies and copyright infringement.
Relief Sought
The authors seek fair compensation for the use of their copyrighted material in Anthropic’s AI training models. The settlement provides for a payment of $3,000 for 500,000 downloaded books, which could grow if more works are identified.