Anthropic’s $1.5B copyright settlement is getting messy as judge delays approval

· Source: AI - Ars Technica · Field: Legal & Regulatory — Intellectual Property & Patents, Compliance & Risk Management, Litigation & Dispute Resolution · Depth: Intermediate, medium

Summary

US District Judge Araceli Martinez-Olguin has delayed final approval of Anthropic's \$1.5 billion copyright settlement, which aimed to resolve claims of widespread book piracy for AI training, due to significant objections from authors and class members. Objectors, including Pierce Story, argue that the proposed legal fees of over \$320 million are excessive, equating to an estimated \$10,000–\$12,000 per hour for lawyers, while individual author payouts are a "pittance" at around \$3,000. Concerns also include the lack of prospective relief requiring Anthropic to destroy pirated works or restrict future use, and allegations that the authors' legal team attempted to exclude or mischaracterize objections. The judge has ordered authors to respond to these concerns by May 21, highlighting the potential for an appeal and a new lawsuit filed by 25 opting-out class members.

Key takeaway

A federal judge has delayed final approval of Anthropic's \$1.5 billion copyright settlement, citing significant objections from authors. Objectors argue legal fees exceeding \$320 million are disproportionate to individual author payouts (around \$3,000) and demand future use restrictions on pirated works. This pause underscores critical challenges in AI copyright settlements regarding fair compensation, attorney fee structures, and the ongoing use of training data.

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Editorial summary, takeaway, and curation by AIssential. Original article published by AI - Ars Technica.