Anthropic reaches a settlement over authors' class-action piracy lawsuit

Anthropic has settled a class-action lawsuit brought by a group of authors for an undisclosed sum. The move means the company will avoid a potentially more costly ruling if the case regarding its use of copyright materials to train artificial intelligence tools had moved forward.

In June, Judge William Alsup handed down a mixed result in the case, ruling that Anthropic's move to train LLMs on copyrighted materials constituted fair use. However the company's illegal and unpaid acquisition of those copyrighted materials was deemed available for the authors to pursue as a piracy case. With statutory damages for piracy beginning at $750 per infringed work and a library of pirated works estimated to number about 7 million, Anthropic could have been on the hook for billions of dollars.

Litigation around AI and copyright is still shaking out, with no clear precedents emerging yet. This also isn't Anthropic's first foray into negotiating with creatives after using their work; it was sued by members of the music industry in 2023 and reached a partial resolution earlier this year. Plus, the details of Anthropic's settlement also have yet to be revealed. Depending on the number of authors who make a claim and the amount Anthropic agreed to pay out, either side could wind up feeling like the winner after the dust settles.