US AI Giant Anthropic to Pay $1.5 Billion in Landmark Copyright Settlement
In a major victory for authors, US artificial intelligence (AI) giant Anthropic has agreed to pay at least $1.5 billion to settle a class action lawsuit alleging copyright infringement. The settlement, which surpasses any other known copyright recovery, marks the first of its kind in the AI era.
According to court documents filed on Friday, the plaintiffs' attorney, Justin Nelson, described the settlement as "a landmark victory" that sets a precedent for future cases involving generative AI and intellectual property. "This is the first class action settlement centered on AI and copyright in the United States," Nelson said.
The lawsuit was brought by a group of authors, including Andrea Bartz, Charles Graeber, and Kirk Wallace Johnson, who accused Anthropic of using pirated books to train its AI chatbot Claude, a major competitor to OpenAI's ChatGPT. The plaintiffs alleged that Anthropic had infringed on the copyrights of approximately 500,000 works.
The settlement agreement, which is subject to court approval, will apply to an estimated 500,000 works, with each author potentially receiving around $3,000 per work. However, the exact number of affected works and authors may increase once the list of pirated materials is finalized.
This landmark settlement has significant implications for the AI industry, regulators, and creative industries alike. "Going to trial would have been an enormous risk," said the plaintiffs in a court motion. "The terms of this settlement are critical victories that will shape how we approach the legal debate over generative AI and intellectual property."
Anthropic's AI chatbot Claude has gained significant attention for its capabilities, but the company's use of pirated materials to train the chatbot has raised concerns about copyright infringement. The lawsuit highlights the need for greater transparency and accountability in the development of AI technologies.
The settlement is a major victory for authors and creators who have long been concerned about the impact of AI on their work. "This is a significant step forward in protecting the rights of authors and creators," said Nelson.
As the AI industry continues to evolve, this landmark settlement serves as a reminder of the importance of respecting intellectual property rights. The outcome may also shape how regulators approach the regulation of generative AI and its impact on creative industries.
The court is expected to review and approve the settlement in the coming weeks. In the meantime, Anthropic will pay out the agreed-upon amount to settle the lawsuit.
This story was compiled from reports by Deutsche Welle and Wired.
