Anthropic settles with authors in first-of-its-kind AI copyright infringement lawsuit

Published: Saturday, September 6, 2025 at 12:19 am

Anthropic Settles Landmark AI Copyright Lawsuit for $1.5 Billion

In a significant development for the burgeoning field of artificial intelligence, Anthropic AI has agreed to pay $1.5 billion to settle a copyright infringement lawsuit brought by a group of authors. This settlement, pending court approval, is one of the largest of its kind involving generative AI and could set a precedent for how AI companies compensate creators.

The lawsuit, filed by authors including Andrea Bartz, Charles Graeber, and Kirk Wallace Johnson, alleged that Anthropic used millions of copyrighted books to train its large language models, specifically the chatbot Claude. The company admitted to using these works, including those obtained through scanning hard copies and utilizing the open-source dataset The Pile. The settlement, if approved, will provide authors with approximately $3,000 per book covered, estimated to be around 500,000 works.

The case, which involved the first substantive decision on how fair use applies to generative AI systems, saw a split ruling. While the judge agreed that Anthropic's use of legally obtained books for training was "fair use," he ruled against the company's use of pirated copies. The settlement resolves the remaining claims related to the pirated books.

The settlement has been met with approval from both sides. Authors' representatives view it as a victory, setting a precedent for AI companies to compensate copyright owners. Anthropic, in a statement, expressed its commitment to developing safe AI systems. The creative community also welcomed the settlement, seeing it as a crucial step in acknowledging that AI companies cannot simply use authors' work without compensation.

This settlement comes amid ongoing legal battles between the creative industries and AI companies. Other lawsuits involving prominent authors and entertainment corporations are underway. Anthropic's ability to handle the compensation is bolstered by a recent funding round, bringing its total value to $183 billion.

BNN's Perspective: This settlement represents a crucial step in navigating the complex legal landscape surrounding AI and copyright. While it provides compensation to authors, it also acknowledges the potential for AI companies to utilize copyrighted works under the fair use doctrine. The long-term implications of this decision will likely shape the future of AI development and the relationship between creators and technology companies.

Keywords: Anthropic, AI, copyright infringement, settlement, authors, lawsuit, Claude, fair use, large language models, compensation, pirated books, generative AI, legal, precedent, creative community.

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