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Tech firm Anthropic to Shell Out $1.5 Billion to Literature Creators

Settlement of a massive billion-dollar copyright lawsuit over AI technology reached between multiple companies, with Anthropic taking steps to avert a possible greater financial burden.

Anthropic, an AI company, will bestow a hefty sum of $1.5 billion on authors
Anthropic, an AI company, will bestow a hefty sum of $1.5 billion on authors

Tech firm Anthropic to Shell Out $1.5 Billion to Literature Creators

In a significant development, AI firm Anthropic has proposed a settlement of at least $1.5 billion to compensate authors whose works were used without permission. This comes in response to allegations that approximately 500,000 books and other texts were used via two pirated online databases to train AI chatbot Claude.

The plaintiff authors have accepted the proposal, but it is still pending approval from a judge in San Francisco. The proposed compensation amounts to approximately $3,000 (around 2,500 euros) per affected work.

The settlement is aimed at preventing a trial where the startup could be ordered to pay much higher amounts. Several lawsuits from copyright holders are currently targeting various companies for using works in the training of artificial intelligence.

The case in San Francisco is noteworthy as the judge ruled that Anthropic's use of copyrighted texts could potentially be covered by the "fair use" principle. However, the judge did not find this principle applicable to the download of the two pirate libraries.

The judge concluded that Anthropic knew that the databases were created illegally. If the case goes to trial, Anthropic could face penalties of up to $150,000 per book.

The organization that agreed to pay at least 1.5 billion US dollars for authors whose works were used without permission is not explicitly named in the provided search results, but the involvement of legal firms specializing in copyright and media law suggests this concerns a major copyright settlement requiring judicial approval. The judge in San Francisco must ensure the fairness and legality of the payment to make it binding.

It's important to note that AI programs are fed with vast amounts of information to provide meaningful responses to user queries. The download of pirate libraries, even unintentionally, could lead to severe penalties in copyright infringement cases.

Claude is one of the most successful competitors of the popular chatbot ChatGPT from OpenAI. The "fair use" principle could be a defense for AI companies in copyright infringement cases, but its application is case-specific.

This news underscores the growing importance of adhering to copyright laws in the development and training of AI systems. As the use of AI continues to expand, so too will the need for clear guidelines and regulations to protect the rights of authors and creators.

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