US court approves landmark Anthropic copyright settlement

A US federal judge has approved a landmark US$1.5 billion settlement between Anthropic and a class of authors, bringing to a close what has been described as the largest certified copyright class action and the largest copyright settlement to date. The agreement resolves claims that Anthropic copied millions of books without permission, although the court previously ruled that training AI models on lawfully obtained books could qualify as fair use while separately finding that the alleged use of pirated copies could still infringe copyright.

US District Judge Araceli Martínez-Olguín rejected most objections to the settlement, noting that around 95% of eligible class members received notice and that more than 91% of affected authors and publishers had already submitted claims. Only 350 class members opted out, while most late requests to leave the settlement were denied.

The court also reduced the legal fees awarded to plaintiffs’ lawyers from the requested US$187 million to approximately US$101 million and lowered service awards for the lead plaintiffs.

Under the settlement, eligible rightsholders are expected to receive around US$3,000 per work, with the possibility of additional distributions if funds remain after valid claims are paid.

Anthropic welcomed the decision, highlighting the earlier fair use ruling and the high participation rate among rightsholders, while the lead plaintiffs said the outcome sends a message that AI developers cannot disregard creators’ rights.

Why does it matter?

The settlement marks a significant milestone in the growing body of copyright litigation involving generative AI. While it resolves claims related to Anthropic’s alleged acquisition of copyrighted books, it leaves intact the court’s earlier distinction between using copyrighted works to train AI models and unlawfully obtaining those works. That distinction is likely to influence future disputes over AI training data.

The case also illustrates how courts are increasingly shaping the legal framework for generative AI alongside legislators and regulators. As AI companies continue to face copyright claims from authors, publishers and other creators, the outcome reinforces the importance of licensing, lawful data acquisition and transparent governance practices in AI development.

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