Anthropic agrees to pay $1.5 billion in copyright lawsuit, alarming other AI companies.
AI giant Anthropic has agreed to pay a massive $1.5 billion settlement to resolve a copyright lawsuit filed by authors. The deal marks a landmark development that could set a precedent in the ongoing debates over AI and copyright. This payout, the largest ever in a copyright-related case, is reshaping the dynamics of the industry.
Anthropic to pay $1.5 billion in damages
The lawsuit was filed over allegations that Anthropic used copyrighted books without permission to train its AI model, Claude. The case has sparked a fresh debate in the U.S. regarding AI companies’ use of copyrighted material. Under the settlement, approximately 500,000 authors will each receive around $3,000 in compensation.
In June, the District Court overseeing the case ruled that the copyrighted materials used by Anthropic to train its large language model fell under the scope of fair use. While this decision initially appeared to be a victory for the company, it did not apply to content downloaded from pirated book sites. The court stated that authors could still pursue piracy claims for works obtained illegally from such platforms.
According to another clause of the settlement, Anthropic agreed to delete all illegally downloaded materials from its systems. In its statement, the company emphasized that it had not used pirated works and did not admit to any wrongdoing.
Justin A. Nelson, the attorney representing the authors, described the agreement as a first of its kind in the era of artificial intelligence. He stated that the decision sends a clear message that AI companies must compensate copyright holders. This historic settlement is expected to serve as a critical reference point for similar lawsuits in the future.
