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Anthropic, Authors Reach Proposed Class Settlement in Book-Piracy Case

The filing seeks preliminary court approval after a June ruling that distinguished fair‑use training from alleged unlawful downloads.

Anthropic logo is seen in this illustration taken May 20, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
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Anthropic has reached a settlement with authors in a landmark copyright case.

Overview

  • Both sides informed the court they negotiated a proposed class settlement resolving claims tied to alleged shadow‑library downloads, with terms not yet disclosed.
  • Court papers indicate an expected September 3 finalization and a motion for preliminary approval due by September 5, averting a December damages trial.
  • In June, Judge William Alsup ruled that using books for AI training is "exceedingly transformative" fair use but left claims over how Anthropic obtained and stored the works for a jury.
  • Alsup said Anthropic may have downloaded up to roughly 7 million books, creating exposure to statutory damages of up to $150,000 per work under U.S. law.
  • Authors' attorney Justin Nelson called the agreement "historic," Anthropic declined to comment, and legal observers note the settlement could influence industry practices even though it sets no precedent.