Judge approves $1.5B Anthropic settlement for pirated books used to train Claude

apnews.com

457 points by BeetleB 19 hours ago


sashank_1509 - 7 hours ago

A one time payment like 1.5B doesn’t do anything. There needs to be a royalty payment based on if the AI regurgitates existing ideas. That is probably the correct way to legislate this. If anything a human does can instantly be copied by an LLM, and then sent to all its subscribers, things need to change

ilamont - 17 hours ago

If you have the time, read the judge's response to the motion:

https://storage.courtlistener.com/recap/gov.uscourts.cand.43...

The big deal for publishers and authors is the payout per eligible title is $3k. For a traditional publishing contract involving one author, the amount will be split down the middle.

The other thing which caught my eye is the judge slashed the class counsel's fee by half, from 12.5% ($187.5m) to 6.8% ($101m). The class counsel's unreimbursed litigation expenses were $2.6m.

The three class representatives get just $15k each.

cultofmetatron - 6 hours ago

I do recall that a "famous redditor" was driven to suicide for making works available and he wasn't even making money for it.

driverdan - 13 hours ago

Judge Alsup issued the original order that determined they were liable for piracy but that training LLMs on books was fair use. It's worth reading if you're interested in the topic. https://www.courtlistener.com/docket/69058235/231/bartz-v-an...

theplumber - 13 hours ago

But why not jail like Kim Dotcom? And why no Feds jumping on Dario’s window? They are not only pirating, they also resell it!

blackqueeriroh - 10 hours ago

For anyone who thinks the problem is Anthropic, I want you all to know that most authors make less than the median income. Most make less than $20,000 a year, because publishing houses give authors an advance, and then authors must pay back that entire advance in sales before they see a dollar of profit from their work.

Most never do.

Maybe publishers should JUST pay authors WELL, and get a book every 2-3 years.

https://authorsguild.org/news/key-takeaways-from-2023-author...

doitright99 - 6 hours ago

If a person did this, this person would go to jail. If a company does it? Small fine and the green light to cannibalize more content. Funny how that works.

jdlshore - 18 hours ago

To be clear, the issue is not that the books were used to train Claude, but that they were pirated.

BloodyIron - 12 hours ago

Did someone forget to consult with the MPAA and the RIAA on this one? This is a joke of an outcome. $3k per book. How much was it per song for Napster?

chrisaiv - 2 hours ago

In many ways this adds to Anthropic’s motivation to IPO.

This deal is built around Anthropic surviving. The $1.5B comes in installments, and counsel’s fees are paid in step with those installments.

The class is now effectively Anthropic’s creditor, with a direct financial interest in the company staying solvent through the payment schedule.

Civil suits compensate and the one outcome guaranteed to leave authors worse off was a verdict big enough to kill the payer.

hmokiguess - an hour ago

I'm curious to see how Suno and the Record Labels is gonna play out

blackqueeriroh - 11 hours ago

Death to copyright, which has always been far more harmful to small authors and creators than it has even been to large companies.

pjio - 4 hours ago

This is insufficient for the human authors but seems ideal for Anthropic, who now have established a financial moat for others to train their ai on those works (except for Chinese companies, which don't care either way).

jiaosdjf - 2 hours ago

Single greatest transfer of intellectual property in history.

I don't think royalties or settlements are really the point here. AI must be a net benefit to humanity, or we burn everything to the ground, it's that simple.

The next few decades of AI need to lift everyone up, it needs to eliminate the most degrading and dangerous jobs while providing abundance. There is simply no point to robots if they don't serve us and make everything cheaper and more accessible to us.

We are watching Wall Street. The Devon's and Luigi's of the world are not interested in your settlement figure or what this means to shareholders. Humanity needs to be aware that it either keeps parasites at bay or the parasites are going to build a robot and surveillance army. It is literally us or them.

I'm not anti-AI, I am not scared of AI going rogue, I simply recognise that these people cannot be trusted, they do not care about your rules, there is no "regulating" it, the only thing that can scare them is a million people holding pitchforks outside their building.

hyperbole - 3 hours ago

The fact that pirated books en-mass were used to train LLMs is legally irrelevant, oh do tell - why is that? The whole point of an LLM is to train a neural network based on content - without the content the net is entirely noise. Anthropic/OpenAI, etc. do not exist without training data. Its akin to taking millions of courses online that are intended to be paid for, but never paying.

reactordev - an hour ago

$1.5B for a company that is valued at $1T+…

sschueller - 5 hours ago

Where is my check for my 20 years of contributing to reddit?

pier25 - 14 hours ago

This is not even than a slap on the wrist. Publishers who negotiated this really fucked up writers.

According to US federal law, pirating a single copyrighted work and gaining commercial advantage of it (which Anthropic 100% did) represents five years in prison and a $250,000 fine. But it gets worse:

"Penalties for a copyright infringement conviction may increase if the defendant has previous similar convictions, made more than 10 copies of copyrighted works, committed copyright infringement during a period longer than 180 days, or infringed copyrighted material worth more than $2,500."

https://www.justia.com/entertainment-law/piracy-in-the-enter...

petterroea - 5 hours ago

Settlement would mean it doesn't become legal precedence, right?

This outcome seems to be the best possible for Anthropic. Over 100B$ have been invested in AI so far, venture capital can afford to pay a few billions per big company as a South Park style "Sorry".

Or am I missing something?

Varelion - 18 hours ago

I sincerely don't understand what the point of these laws are, when the cost of flagrant violations is no more than a slap on the wrist -- these really meager sums that serve as nothing more than something to point at and say "Look, we did something!"

Cover-your-ass strategy, and nothing more. Who, besides the ones at fault, are ever happy with these mean-nothing fines?

The justice system really needs an overhaul with how it tackles "justice" between the wealthy, the connected, the corporations, and the rest. Though I am unsure what that would look like. Minimum net wealth per category of infraction across the board?

Edit: grammar

br0ceph - 15 hours ago

I support anthropics position here, on both learning from and "pirating" books. The way i see things , the publishers and authors are happy with any policy that makes them more money, and more market control, regardless of what is ethical/just/right. They would shutdown public libraries , all libraries, if they could. Aaron Swartz lost his life because he tried to make public knowledge public, and they would be happy to put every information activist to death to protect their monopolies. IMHO they have no right to stop free access on the internet. The whole copyright system is artificial and monopolistic, and the publishers are complaining yet again, that technology moves information more efficiently than they do, so they want to artificially retard it through goverment action. The real goverment action that is needed, is to protect private/personal data; not data that is actively traded commercially or publically. These tech companies are invading personal and private spaces of everyday people, and storing and training with it. Even using it for military targetting and warrantless surveillance. Anthropic is by no means a good entity, so the way to stick it to them and all tech companies, is to allow their internet scraping, but make it outright criminal to use telemetry or any surveillance techniques they have or will develop. Also... the ”creators",hollywood,publishers, have no problems scraping themselves, and lift ideas from just about everywhere they can get it. Almost every hollywood movie is just an assemblage of random memes and topical concerns of everyday ppl, distilled into embelished predictable cheese. The publishers are the original slop actors. Human Slop.

tancop - 5 hours ago

this is not enough. the penalty for training ai without permission should be releasing the model as public domain. if you take from everyone you have to give back the same way.

timmg - 12 hours ago

If you extrapolate these “fines” to per book piracy, I wonder what the cost would be for something like Anna’s Archive. Trillions?

panny - an hour ago

$1.5 billion at 150,000 per copyright violation according to DMCA and such. About 10,000 books.

>$3000 per book

Ohhhh, yeah, big copyright fines only apply to us little guys, not the "asshole tech" companies.

processunknown - 18 hours ago

Seems squarely in the "cost of doing business" category

lvl155 - 2 hours ago

So they used pirated materials to train their models but others can’t use their models for training even if you pay.

sharts - 7 hours ago

That doesn’t seem like much

pietmichal - 2 hours ago

So just a speeding ticket...

octocop - 6 hours ago

Roko's basilisk might be at work here

fithisux - 10 hours ago

This is "smoothed" by governments cause they need this tech for surveillance.

The verdict is a joke.

larodi - 5 hours ago

So it goes like this: I first you take, then money you make and eventually you repay. This is a very smart loan from society indeed. And seems to be the new normal…

Even though Anthropic is my daily driver I’m done respecting any sort of copyright. I’m okay paying for subscription for a service delivery but never ever again will I believe in copyright or any other utterly non-enforceable similar concept.

thiht - 3 hours ago

Honestly maybe (and just maybe) waiving copyrights on all the written content that ever existed to create training data would be a good thing to do, laws are made up so we can decide it’s a good trade off as a society. But:

1. I feel like this should be discussed globally, there should be a public debate, a vote, and guardrails

2. It should not be in the hands of private companies, it should either be done by the government and made available to the public ; or if it’s done by private companies they should be mandated to give the training data to the government so it’s available to the public.

My point is we can decide to say it’s ok because LLMs are too important strategically. But if we do so it should benefit the public, not 5 mega corporations, training data should be considered as public infrastructure, like roads, rails, or the electricity grid. Societies are failing and this is just one more nail in the coffin.

persedes - 17 hours ago

Are "open" models exempt from that? Can imagine they used the same datasets.

tim-projects - 12 hours ago

This is a too big to fail scenario. If these companies fail, so does the US economy. Normal laws for individuals don't apply, so any comparison to that is pointless.

surfingdino - 4 hours ago

The correct way to do it would be to force Anthropic to remove content and the results of training based on that content from their models at copyright holder's request.

lukewarm707 - 3 hours ago

$1.5bn? it's a steal!

abuhl98 - 11 hours ago

It is wild to see a $1.5 billion resolution in the AI copyright space—especially with around $3,000 per book going directly to affected authors.

shevy-java - 5 hours ago

One thing I always wondered ...

There used to be libgen. Then it went down. It went semi-back up but ... it is still kind of down.

Those issues kind of coincided with the big greedy mega-corporations leeching off data en masse; Anthropic was not the only one, Facebook is another example here. I always wondered whether the decline in quality, fewer liberated books published, coincided with what the big corporations were doing. Would be great to be able to see any underlying strategy here. Imagine Anthropic, just as a scenario, leeching off of everyone else, and then also sending in their lawyers to try to close down what they leeched off here. I mean the rise of bots kind of coincides with the rise of AI. So why not them also trying to make it harder for the rest of the world to access liberated books.

throw1234567891 - 4 hours ago

Now it’s time to mount such cases everywhere in the world.

HackerThemAll - 17 hours ago

So... What about authors from other parts of the world? USA has settled a USA case and they think all is cool for the entire world. So americentric.

FireBeyond - 18 hours ago

Maybe they can give it in the form of expiring Fable credits.

croes - 9 hours ago

Usually a thief isn‘t allowed to keep what he has stolen

nekooooo - 17 hours ago

$3k a book is so cheap.

exabrial - 18 hours ago

that number is missing a zero or two in front of the decimal point

gabriel666smith - 6 hours ago

I work as an author. I believe this is total bullshit, from beginning to end - the ruling, the settlement, and the suit itself.

In the UK, we have a thing called the Public Lending Right [1]. This pays authors a fixed sum each time their book is taken out of a library, up to a capped amount.

The cap isn't very high - about $7k - so it is both an OK bit of income for authors who might be making very little money elsewhere, and also doesn't end up all going to authors who are already bestsellers. It's a decent legal system for helping libraries hold niche titles as well as the popular ones. This is, after all, the purpose of a library.

To establish my bias here: My debut novel came out after the period this specific suit concerns. I also uploaded it to LibGen myself.

I strongly believe that books should be available to read, free of charge, to all people. I benefited enormously from libraries and piracy growing up. I think they serve an important educational purpose that does not end when a person leaves school, and I do not think wealth or disposable income is a fair way to decide the breadth of a person's education.

I also have no problem with people making new "language things" using my work. I love sample-based music (like dance music, hip hop, etc) and it'd be hypocritical for me to take issue with anyone doing analogous things using books. Maximising sales is not the end-goal of making art, for me personally. Other artists feel otherwise. They consider training on pirated books stealing. That's OK - it's not for me to tell them what to believe.

The problem for me is that these corporations - undoubtedly still pretraining on pirated material - are, essentially, leeching. By not releasing the model as open-weight, freely available, they are not acting in the same spirit of the system they took advantage of. It's the Spotify model: pirate first, pay a nominal amount that does not meaningfully harm profit later. Now the dust has settled there, we can see the harm it has done to music culture.

A single settlement which does not establish precedent does not solve anything. A tokenistic $3k allows anti-AI authors to wave a cheque in the air and declare a victory. It pays the rent for a month or two. It does nothing for the months after that, when the corporation is still profiting. It does nothing to establish precedent for future artists, who also have to pay rent.

It would be (non-trivial, but) relatively simple to integrate - for example - download figures from Anna's Archive into the PLR. I'd happily dilute my PLR payment appropriately, because I think libraries are important.

You can't stop people pirating digitally replicable things. Digital ownership is not a concept that has held, or will hold.

There are only 23,000 authors in the UK who claim the cash from the PLR. To pay all those authors the national living wage in the UK (£26k) from the PLR, you would need to raise £546 million. That is around 1/34 of Anthropic's reported annual revenue.

I'm of course not arguing Anthropic should be solely responsible. But it's very frustrating that all the pieces of the puzzle for actually paying artists in a sustainable and ongoing way now exist, and one of the major obstacles to this - and the idea of a genuinely free, legal, international library, which creates more authors, writing better books, full-time - are legacy rights holders who remain attached to a completely dysfunctional and outdated concept of ownership.

So - unless part of a sustained and reasonable campaign, which understands the futility of (and damage to the medium and its creators caused by) treating digital ownership in the same way as physical ownership - this suit is close to pointless, and arguably actively harmful in the long term.

[1] https://www.bl.uk/services/plr

up2isomorphism - 10 hours ago

1.5B is a joke

telotortium - 13 hours ago

See, Judge Alsup should have been the person Biden put on the Supreme Court, that or re-nominate Merrick Garland. Instead, he made a silly promise to sate Black Lives Matter, which even when he took office was fast on its way to ignominy, and now Kagan is stuck being the only competent liberal justice on the court. At least Alsup can continue setting the direction of law as it applies to the tech industry.

nohell - 10 hours ago

also see: https://nonogra.ph/ai-companies-are-buying-tons-of-old-books...

sensanaty - 13 hours ago

What a fucking joke of a country the US is, allowing this kind of behaviour with such a pathetic "punishment". Barely even qualifies as a tap on the wrist, Anthropic should be getting gutted into non-existence for this shit and the execs should be given the Aaron Swartz treatment.

spectre23 - 5 hours ago

$3000/book for effectively pirating a book is shamefully low.