Anthropic Settles Author Lawsuit With $1.5 Billion Deal

Anthropic has agreed to pay at least $1.5 billion to authors in a settlement over the use of pirated books in training its artificial intelligence systems. If approved by a federal judge in San Francisco next week, it would be the largest payout on record in a US copyright case. The agreement closes a year-long dispute that tested how far AI developers can go in using creative material without permission.

The case centered on claims that Anthropic downloaded millions of books from online piracy sites to feed its chatbot Claude. The company must now pay authors around $3,000 for each book included in the settlement. In total, about half a million works are expected to qualify. The final amount could increase if more claims are submitted. Anthropic has also agreed to delete the files it copied.

Background of the dispute

The lawsuit began in 2024 when three writers, Andrea Bartz, Charles Graeber, and Kirk Wallace Johnson, accused the company of using their books without consent. The case was expanded to represent all US authors whose works appeared in the datasets. In June, the court ruled that Anthropic could train its models on legally purchased books but said the company would still face trial over its reliance on pirated sources.

Judge William Alsup stated that Anthropic had obtained more than seven million pirated titles. These included nearly two hundred thousand books from the Books3 dataset, along with millions more from Library Genesis and Pirate Library Mirror. The ruling created a path for a December trial, but the settlement avoids that step and brings an early conclusion.

Industry significance

This agreement arrives at a time when AI developers face growing pressure over copyright. Music labels, news outlets, and publishing houses have all raised similar complaints. At the same time, some companies have begun signing licensing deals with AI firms, offering access to data in return for payment. The Anthropic case stands out because it sets a financial benchmark and forces one of the leading AI players to admit past practices carried legal risk.

Other disputes involving Anthropic

Anthropic has been the target of multiple lawsuits. Earlier this year, Reddit said the company’s systems accessed its platform more than 100,000 times after restrictions were in place. Universal Music also filed a suit in 2023, claiming that Anthropic had used copyrighted lyrics without permission. These cases highlight the wider legal challenges facing AI firms as they compete to expand training material.

What happens next

A court hearing scheduled for September 8th will decide if the settlement is approved. If it goes forward, authors will be able to check whether their works are listed through a dedicated website and submit claims for payment. The decision will serve as a signal to the industry that creative material cannot be taken freely for AI training without facing financial consequences.

Notes: This post was edited/created using GenAI tools. Image: DIW-Aigen.

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