Judge Dismisses Anthropic’s $1.5 Billion Piracy Settlement Over Incomplete Terms Affecting Authors

Anthropic Faces Ongoing Legal Challenges Following $1.5 Billion Settlement

Despite recently agreeing to one of the largest payouts in a copyright case in the United States, Anthropic continues to grapple with legal complications related to alleged piracy.

Settlement Overview

Recently, Anthropic settled a class-action lawsuit for a staggering $1.5 billion, with plans to provide approximately $3, 000 to each of the nearly 500, 000 affected individuals. This decision marks a significant moment in copyright law, yet the ramifications of the case extend beyond the settlement figure.

Judge’s Fair Use Ruling and Piracy Allegations

In a pivotal ruling last June, the presiding judge determined that Anthropic’s use of copyrighted material to enhance its large language model, Claude, fell under the principle of fair use. However, this ruling did not eliminate piracy claims against the company, which stem from allegations of unlawful downloads of books from online platforms like Library Genesis.

Judge Rejects Settlement as Incomplete

In a surprising turn of events, the judge has rejected the $1.5 billion settlement, expressing concerns that the agreement was being “forced down the throat of authors”and was “nowhere close to complete.”This underscores a growing sentiment that many class members may not receive fair compensation, especially once funds are made available, often leading to a lack of attention from legal representatives.

Next Steps for Class Counsel

To address these concerns, Judge Alsup has mandated that the attorneys craft a claim form that explicitly allows class members to decide whether to opt in or out of the settlement. This procedural requirement aims at improving transparency and ensuring that all affected parties have clarity regarding their options.

Deadline for Compliance

Attorneys are on a tight deadline, required to submit a complete list of the works involved in the case by September 15. Additionally, for the settlement to move forward, the court must approve the finalized list of works, all class members, and the claim form by October 10.

As developments continue to unfold, stakeholders in the copyright and AI sectors are closely monitoring the outcomes of this case, which could set significant precedents for future litigation in the realm of artificial intelligence and intellectual property.

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