Judge approves $1.5 billion copyright settlement between AI company Anthropic and authors

SAN FRANCISCO (AP) — A federal judge on Thursday approved a $1.5 billion settlement between artificial intelligence company Anthropic and authors who allege nearly half a million books had been illegally pirated to train chatbots.

U.S. District Judge William Alsup issued the approval in San Francisco federal court Thursday after the two sides worked to address his concerns about the settlement, which will pay authors and publishers about $3,000 for each of the books covered by the agreement. It does not apply to future works.

A Monday filing sought to convince the judge that the parties have set up a system designed to get out robust notice to all authors and publishers covered by the agreement, ensuring they get their cut of the pot if they want to sign off on the settlement or opt out to protect their legal rights moving forward.

They also tried to assure him that the author and publishers group that cobbled the deal together are not doing any “back room” dealings that would hurt lesser-known authors.

Alsup’s main concern centered on how the claims process will be handled in an effort to ensure everyone eligible knows about it so the authors don’t “get the shaft.” He had set a September 22 deadline for submitting a claims form for him to review before Thursday’s hearing to review the settlement again.

The judge had raised worries about two big groups connected to the case — the Authors Guild and the Association of American Publishers — working “behind the scenes” in ways that could pressure some authors to accept the settlement without fully understanding it.

Attorneys for the authors said in Monday’s filing they believe the settlement will result in a high claims rate, respects existing contracts and is “consistent with due process” and the court’s guidance.

Alsup had dealt the case a mixed ruling in June, finding that training AI chatbots on copyrighted books wasn’t illegal but that Anthropic wrongfully acquired millions of books through pirate websites to help improve its Claude chatbot.

Bestselling thriller novelist Andrea Bartz, who sued Anthropic with two other authors last year, said in a court declaration ahead of the hearing that she strongly supports the settlement and will work to explain its significance to fellow writers.

“Together, authors and publishers are sending a message to AI companies: You are not above the law, and our intellectual property isn’t yours for the taking,” she wrote.

Alsup also said in the courtroom Thursday that he plans to step down from the bench by the end of the year.

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AP Technology Writer Matt O’Brien contributed to this story from Providence, Rhode Island.