In a landmark settlement, Anthropic, a leading artificial intelligence company, has agreed to pay $1.5 billion to a group of authors and publishers after a judge ruled it had illegally downloaded and stored millions of copyrighted books, The New York Times reported.
The settlement is the largest payout in the history of U.S. copyright cases. Anthropic will pay $3,000 per work to 500,000 authors.
The agreement is a turning point in a continuing battle between A.I companies and copyright holders that spans more than 40 lawsuits across the country. Experts say the agreement could pave the way for more tech companies to pay rights holders through court decisions and settlements or through licensing fees.
“This is massive,” said Chad Hummel, a trial lawyer with the law firm McKool Smith, who is not involved in this case. “This will cause generative A.I. companies to sit up and take notice.”
The agreement is reminiscent of the early 2000s, when courts ruled that file-sharing services like Napster and Grokster infringed on rights holders by allowing copyrighted songs, movies, and other material to be shared free on the Internet.
The Verge reported: In what’s potentially the first major payout to creatives whose work was used to train AI systems, Anthropic has reached an agreement to pay “at least” a staggering $1.5 billion, plus interest, to authors to settle its class-action lawsuit.
The amount brakes down to smaller payouts expected to be approximately $3,000 per book or work. Lawyers for the plaintiffs said it’s “believed to the the largest publicity reported recovery in the history of US copyright litigation.”
The settlement is subject to court approval, and a hearing will take place on September 8th. According to a press release, the final amount could be higher, in that approximately 500,000 works will likely be paid out, but if the total is higher than that, Anthropic will pay an additional $3,000 per work, and it all depends on the number of claims submitted. As part of the settlement, Anthropic must also destroy the original files it downloaded and any copies.
The Wall Street Journal reported: Artificial intelligence company Anthropic agreed to pay at least $1.5 billion to settle a copyright infringement lawsuit over its use of pirated books to train large-language models.
Lawyers for plaintiffs said in a court hearing Friday that, if approved, the proposed settlement would be the largest of its kind.
The settlement could influence the outcome of pending litigation between other media companies and AI firms, and may push the tech companies to seek licensing agreement with content owners whose works are considered vital for training purposes.
The federal suit, filed in California last summer by three authors, alleged that Anthropic violated copyright laws by using millions of pirated works train its Claude AI models and tried to cover up its copyright theft.