Anthropic’s proposed $1.5 billion settlement related to a book piracy class action lawsuit has been temporarily halted. U.S. District Judge William Alsup expressed reservations regarding the terms of the agreement during a recent court hearing. He raised concerns that the class action lawyers might compromise the interests of authors in favor of a deal that could be implemented without adequate transparency.
The settlement was designed to resolve accusations against Anthropic for allegedly training its AI models on hundreds of thousands of copyrighted books. Although Judge Alsup previously ruled that using purchased books may constitute fair use, he indicated that training on illegally downloaded materials could expose Anthropic to liability.
Judge Alsup’s hesitations included a need for further examination of the claims process outlined in the settlement. He emphasized the importance of ensuring that all authors are adequately informed about the case and its implications, voicing concerns about potential unauthorized claims arising from the settlement.
Under the current settlement structure, authors and publishers would receive approximately $3,000 for each covered work. An attorney representing the authors estimated around 465,000 books would be included. However, Judge Alsup requested a definitive count and cautioned against unexpected lawsuits that might emerge following the settlement.
Maria Pallante, CEO of the Association of American Publishers, expressed disagreement with the judge’s approach, suggesting that misunderstandings may hinder the settlement process. She noted that class actions are intended to resolve disputes, not complicate them further. Justin Nelson, an attorney for the authors, stated that their legal team is committed to ensuring that all legitimate claims receive compensation.
The judge is scheduled to reassess the settlement at a hearing on September 25th.
Source: https://www.theverge.com/news/775230/anthropic-piracy-class-action-lawsuit-settlement-rejected