Tech Magnate Anthropic Agrees to Shell Out $1.5 Billion to Writers in Pioneering Settlement
In a landmark decision, AI company Anthropic has agreed to pay a settlement of $1.5 billion to authors over allegations of illegally downloading and copying their books. The settlement, reached on August 26, 2023, comes after a court ruling that largely sided with Anthropic on the issue of fair use.
The lawsuit, which was set to go to trial, accused Anthropic of downloading and using seven million books without the authors' consent for training purposes. The first installment of the settlement, due within five days of preliminary approval, will mark the beginning of Anthropic's efforts to make amends for its actions.
The last payment must be made two years after the settlement, with the payments being made in four installments throughout this period. Authors who opt into the agreement will be eligible to share in the settlement fund, with each author potentially receiving additional payments of $3,000 per book allegedly used by Anthropic for training.
Authors Guild CEO Mary Rasenberger stated that the deal acknowledges that AI companies cannot steal authors' creative work for training purposes. She also expressed hope that this settlement will help set a precedent that consent and compensation for works used in AI training are nonnegotiable.
The Human Artistry Campaign, which supported the authors in the lawsuit, echoed Rasenberger's sentiments, stating that they hope this settlement will lead to more licensing that gives authors compensation and control over the use of their work by AI companies.
Lawyers representing the authors in the Anthropic court case, led by attorney Justin Nelson, will seek no more than 25 percent of the settlement in fees. Authors who believe their work may have been stolen can learn more about how to file a claim for compensation.
It is worth noting that Anthropic later purchased copies of those books it stole off the internet to cover its tracks. This settlement is among the first deals reached by creators over novel legal issues raised by AI technology, and it serves as a reminder that consent and fair compensation are crucial in the use of creative works, especially in the rapidly evolving field of AI.
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