Anthropic: $1.5 Billion Dispute Between Authors and Publishers

The payment of the $1.5 billion settlement from Anthropic is beginning, but the distribution is causing disputes among authors, publishers, and even agencies. The courts have drawn a line between legally acquired works and illicit content, and arbitration is planned for ongoing disagreements. More than 482,000 titles and a fee of $3,000 per illegally used book are at stake.

The courts distinguish between the illicit and "fair use," with arbitration planned

A court has ruled that the use of books obtained illegally by Anthropic to train its models is unlawful. In contrast, training based on legally purchased works has been deemed fair use. For cases that do not reach an amicable resolution, an arbitrator appointed by the court will need to intervene.

Competing claims and incomplete files disrupt payments

As payments begin, authors and publishers are filing competing claims with the settlement administrator, according to the New York Times. Mary Rasenberger (Authors Guild) reports that many publishers have incomplete records regarding the rights reverted, a situation that particularly affects textbook authors, some of whom receive only 10 to 15% according to their contracts. Literary agencies are also claiming a share, although they reportedly have no legal basis for doing so, according to Writer Beware. Concrete cases are emerging, such as that of April Henry, facing a claim from HarperCollins on a title that has already been reverted, or a non-fiction author whose publisher is offering only 10%.

A massive settlement: $1.5 billion, $3,000 per book, and 482,000 titles

The settlement amounts to $1.5 billion and is presented as the largest copyright agreement in the United States. Each book downloaded without permission and used to train Claude, Anthropic's chatbot, will result in a payment of $3,000. This arrangement encompasses more than 482,000 works.