Introduction to the Case
A US district judge, William Alsup, has expressed strong dissatisfaction with a proposed $1.5 billion settlement between Anthropic, an AI company, and authors whose books were used without permission to train AI models. The case involves allegations of rampant piracy by Anthropic, which could have faced over $1 trillion in damages.
The Proposed Settlement
The proposed settlement aims to resolve the issue by covering less than 500,000 works, a fraction of the total number of works affected. This deal has been criticized for being too lenient, allowing Anthropic to pay a small fraction of its total valuation of $183 billion. Furthermore, the settlement does not require Anthropic to admit wrongdoing, despite the company’s models being trained on the authors’ works without permission.
Judge Alsup’s Concerns
Judge Alsup has raised several concerns about the proposed settlement, stating that it is "nowhere close to complete." He has criticized the lawyers involved for rushing the deal and attempting to force it through without properly addressing key issues. These issues include the management of disbursements for works with multiple claimants, the process for notification and allocation, and the resolution of disputes over ownership or submitted claims.
Unresolved Issues
The settlement lacks clarity on several important points, including:
- The Works List, which outlines the specific works covered by the settlement
- The Class List, which defines the class of authors and works affected
- The Claim Form, which authors must use to submit their claims
- The process for notification, allocation, and dispute resolution
Judge Alsup’s Demands
To move forward, Judge Alsup is requiring significant changes to the settlement. He wants instructions added that require anyone with copyright ownership to opt in, with the consequence that the work won’t be covered if even one rights holder opts out. Additionally, he wants disputes over ownership or submitted claims to be settled in state court.
Conclusion
The proposed $1.5 billion settlement between Anthropic and authors whose works were pirated is facing significant hurdles due to Judge Alsup’s concerns. The judge’s demands for greater clarity and fairness in the settlement are aimed at protecting the rights of authors and ensuring that Anthropic is held accountable for its actions. As the case continues, it remains to be seen whether the parties involved can reach a revised settlement that addresses these concerns.
FAQs
- Q: What is the proposed settlement about?
A: The proposed settlement is between Anthropic, an AI company, and authors whose books were used without permission to train AI models. - Q: How much is the proposed settlement worth?
A: The proposed settlement is worth $1.5 billion. - Q: Why is Judge Alsup dissatisfied with the proposed settlement?
A: Judge Alsup is dissatisfied because the settlement lacks clarity on several important points and does not require Anthropic to admit wrongdoing. - Q: What changes is Judge Alsup requiring?
A: Judge Alsup is requiring instructions to be added that require anyone with copyright ownership to opt in, and disputes over ownership or submitted claims to be settled in state court. - Q: What could have been the maximum damages Anthropic could have faced?
A: Anthropic could have faced over $1 trillion in damages.
