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Tag: William Alsup

  • Judge rejects Anthropic’s record-breaking $1.5 billion settlement for AI copyright lawsuit

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    Judge William Alsup has rejected the record-breaking $1.5 billion settlement Anthropic has agreed to for a piracy lawsuit filed by writers. According to Bloomberg Law, the federal judge is concerned that the class lawyers struck a deal that will be forced “down the throat of authors.” Alsup reportedly felt misled by the deal and said it was “nowhere close to complete.” In his order, he said he was “disappointed that counsel have left important questions to be answered in the future,” including the list of works involved in the case, the list of authors, the process of notifying members of the class and the claim form class members can use to get their part of the settlement.

    If you’ll recall, the plaintiffs sued Anthropic over the company’s use of pirated copies of their works to train its large language models. Around 500,000 authors are involved in the lawsuit, and they’re expected to receive $3,000 per work. “This landmark settlement far surpasses any other known copyright recovery,” one of the lawyers representing the authors said in a statement. However, Alsup had an “uneasy feeling about hangers on with all [that] money on the table.” He explained that class members “get the shaft” in a lot of class actions once the monetary settlement has been established and lawyers stopped caring.

    Alsup told the lawyers that they must give the class members “very good notice” about the settlement and design a claim form that gives them the choice to opt in or out. They also have to ensure that Anthropic cannot be sued for the same issue in the future. The judge gave the lawyers until September 15 to submit a final list of works involved in the lawsuit. He also wrote in his order that the works list, class members list and the claim form all have to be examined and approved by the court by October 10 before he grants the settlement his preliminary approval.

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    Mariella Moon

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  • Anthropic reaches a settlement over authors’ class-action piracy lawsuit

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    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.

    “This historic settlement will benefit all class members,” said Justin Nelson, a lawyer for the authors. “We look forward to announcing details of the settlement in the coming weeks.”

    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.

    Update, August 26, 2025: Added statement from authors’ lawyer.

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    Anna Washenko

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