"In one of the largest copyright settlements involving generative artificial intelligence, Anthropic AI, a leading company in the generative AI space, has agreed to pay $1.5 billion to settle a copyright infringement lawsuit brought by a group of authors. If the court approves the settlement, Anthropic will compensate authors around $3,000 for each of the estimated 500,000 books covered by the settlement."
"The fair use doctrine enables copyrighted works to be used by third parties without the copyright holder's consent in some circumstances, such as when illustrating a point in a news article. AI companies trying to make the case for the use of copyrighted works to train their generative AI models commonly invoke fair use. But authors and other creative industry plaintiffs have been pushing back."
Anthropic AI agreed to pay $1.5 billion to settle a copyright infringement lawsuit brought by a group of writers. If the settlement receives court approval, Anthropic will pay roughly $3,000 for each of an estimated 500,000 books covered. U.S. Senior District Judge William Alsup will consider approving the deal next week. The case produced the first substantive decision on how fair use applies to generative AI systems and signals a potential inflection point in legal fights over using creative works to train large language models. Fair use permits limited uses of copyrighted works without consent. AI companies commonly invoke fair use to justify training, while creators and industry plaintiffs have pushed back. The settlement motion calls the payout the largest publicly reported copyright recovery and frames it as a step toward market-based licensing of training data.
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