Publishers and Agents Demand a Share of the Anthropic Settlement

As the $1.5 billion settlement from Anthropic gets underway, authors report seeing publishers and even agents claiming their shares. Industry insiders mostly talk about record-keeping errors and a confusing process, while the distribution and contestation rules specify who can receive what and when.

Numerous Disputes and the Involvement of Agents

Victoria Strauss reports receiving an unusually high number of claims in just two days, with similar errors repeated, leading her to believe there is a larger, systemic issue. She notes that several literary agencies are also claiming shares, while in her view, agents do not hold the rights to the books they sell. Author Courtney Milan, also known as Heidi Bond, asserts that some agents are seeking percentages of the settlement and strongly opposes this. Courtney Milan and the Authors Guild have published guidelines explaining how to contest payment distributions. The settlement stipulates that an author is only eligible for the full amount for a work if the reversion of rights occurred before August 10, 2022, referred to as the "download date."

Explanations Offered by Author Organizations

Victoria Strauss explains that she hesitates to attribute these situations to malice, preferring the hypothesis of poor record management. She adds that some publishers have acknowledged errors and asked Anthropic to correct them. However, she clarifies that her feedback is based on a limited sample. Mary Rasenberger from the Authors Guild does not view these actions as an attempt at appropriation or a specific effort to harm authors. She believes these issues stem from inadequate document management and a confusing settlement process.

Amounts, Sharing Rules, and Settlement Timeline

The Anthropic settlement amounts to $1.5 billion, concluded last year after a court ruling recognized the possibility of invoking fair use for model training while excluding the legality of piracy. The agreement received its final approval in July, allowing payments to begin. Nearly 500,000 works by authors are set to generate a payment of $3,000 per pirated title. When a work is still published by a traditional publisher, the amount is split evenly between the author and the publisher; in the case of self-published titles or those whose rights have reverted to the author, the author receives the full amount.

Publisher Claims: Examples and Categories of Grievances

Authors report receiving messages indicating that other parties are claiming their payments from the settlement. On social media, several have noted that publishers are attempting to obtain more than their share. Author April Henry cites the case of one of her books, the rights of which have been reverted for at least 17 years, while mentioning a credit alert suddenly associating her with HarperCollins as an employer. Victoria Strauss categorizes the complaints into two groups: claims on works whose rights have been reverted, and requests for 100% of the payment when only 50% is actually due.