A $1.5 billion settlement that was proposed to address a ruling earlier this year that AI company Anthropic had violated copyright in acquiring pirated books to train its AI chatbots has been put on hold, after a judge lambasted the settlement in court.
On Sept. 8, U.S. District Judge William Alsup spent almost an hour outlining his concerns about the settlement in a San Francisco courtroom, and scheduled a new hearing for Sept. 25 to review whether his concerns had been addressed, the Associated Press reported.
In an order filed with the court the night before Monday’s hearing, Alsup said he was “disappointed that counsel have left important questions to be answered in the future, including respecting the Works List, the Class List, the Claim Form, and, particularly for works with multiple claimants, the processes for notification (for opt-out, so-called re-inclusion, and claims, whether a given choice is exercised by one, some, or all co-claimants), allocation, and dispute resolution.”
The proposed $1.5 billion settlement would have seen authors or publishers receive $3,000 for each of the estimated 500,000 books covered by the settlement.
In his July decision, Alsup found that Anthropic had not violated copyright of the works by using the books to train its AI chatbots, but that it had violated copyright by downloading for free illegally shared copies of the books and expecting to retain them forever.
In a statement shared on Sept. 5, days before the hearing, the Association of American Publishers said that it endorsed the proposed settlement that was submitted to the court by lawyers for both sides. President and CEO Maria A. Pallante said the “proposed settlement will drive home the important message to all Artificial Intelligence (AI) companies that copying books from shadow libraries or other pirate sources to use as the building blocks for their businesses has serious consequences.”
After Monday’s hearing, Pallante said Alsup had “demonstrated a lack of understanding of how the publishing industry works” in his decision to send the proposed settlement for review, AP reported.
Contact us via email


