Judge delays Anthropic’s $1.5 billion settlement for book piracy

A recent development in the Anthropic case has put a $1.5 billion book piracy settlement on hold as a federal judge expressed apprehensions about the terms of the agreement. The judge overseeing the class action case, Judge William Alsup, raised concerns that the class action lawyers may be crafting a deal in a closed-door setting that authors will feel pressured to accept.

Last week, Anthropic agreed to pay the significant settlement to resolve a class action lawsuit brought by US authors. The lawsuit accused the AI company of using hundreds of thousands of copyrighted books to train its models. Judge Alsup allowed the class action lawsuit to proceed after determining that Anthropic using purchased books for AI training fell within fair use. However, the company could still be held liable for training on unlawfully downloaded material.

During a recent hearing, Judge Alsup mentioned his unease regarding the claims process outlined in the settlement and the potential for others to stake claims on the money. There is a concern that authors might be strong-armed into accepting the terms of the settlement. The settlement proposes that authors and publishers receive approximately $3,000 for the works covered. A lawyer for the authors mentioned that there are about 465,000 books included in the settlement. Still, Judge Alsup requested a clear figure to ensure there are no additional lawsuits emerging later on.

Moreover, the judge emphasized that it is crucial for class members to receive clear and comprehensive notice about the case to ensure everyone impacted is aware of the situation. CEO of the Association of American Publishers, Maria Pallante, expressed frustration over Judge Alsup’s lack of understanding about the dynamics of the publishing industry. Pallante stressed that class action lawsuits are meant to resolve disputes and not create more conflicts among the parties involved.

As the settlement is put on hold, Judge Alsup plans to review the terms further and revisit the case during another hearing scheduled for September 25th. He expressed his hesitation in approving the settlement, stating, “We’ll see if I can hold my nose and approve it.” It remains to be seen how the situation will unfold in the coming days as the legal proceedings continue.