Anthropic AI Copyright Settlement Rejected – $1.5 Billion Ruling
- U.S.District Judge William Alsup has rejected preliminary approval of a $1.5 billion settlement between AI company Anthropic and a class of authors alleging copyright infringement.
- District Court for the Northern District of California rejected the proposed $1.5 billion settlement between Anthropic and a class of authors.
- Judge Alsup expressed concerns that the initial settlement terms did not adequately protect class members or prevent future litigation.
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Judge Alsup Rejects Initial Approval of Anthropic‘s $1.5 Billion Copyright Settlement
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U.S.District Judge William Alsup has rejected preliminary approval of a $1.5 billion settlement between AI company Anthropic and a class of authors alleging copyright infringement. The judge requires more stringent notification procedures and safeguards against future lawsuits.
Updated September 9, 2025, 06:25:10 AM PDT
What Happened?
On September 8, 2025, Judge William Alsup of the U.S. District Court for the Northern District of California rejected the proposed $1.5 billion settlement between Anthropic and a class of authors. Engadget reported the initial agreement on February 29, 2024, detailing the claims that Anthropic used copyrighted works to train its Claude AI models.
Judge Alsup expressed concerns that the initial settlement terms did not adequately protect class members or prevent future litigation. He specifically mandated improved notification to authors and a clear opt-out mechanism.
Key Requirements from Judge alsup
The judge outlined several requirements before granting preliminary approval:
- Thorough Notice: Class members must receive “very good notice” about the settlement terms.
- Opt-In/Opt-Out Choice: The claim form must explicitly allow authors to choose whether to participate in or opt out of the settlement.
- Future Lawsuit Prevention: The settlement must prevent future lawsuits against Anthropic regarding the same copyright issues.
- Works List & Class Member Verification: A final list of works involved in the lawsuit and a complete list of class members must be submitted by September 15, 2025.
- Court approval: All lists and the claim form must be examined and approved by the court by October 10, 2025, before the settlement can receive preliminary approval.
Background: The Copyright Lawsuit
The lawsuit, filed in September 2023, alleged that Anthropic illegally used copyrighted books, articles, and other written materials to train its Claude AI models without obtaining proper licenses. The authors argued that this training constituted copyright infringement, as it allowed Claude to reproduce and compete with their work. The $1.5 billion settlement was touted as a landmark agreement, potentially setting a precedent for similar cases involving AI and copyright.
This case is part of a broader wave of copyright litigation against AI companies.Other authors, including Sarah Silverman and Paul Tremblay, have filed similar lawsuits against OpenAI, alleging similar copyright violations related to the training of ChatGPT. The Verge provides further details on these related cases.
Timeline of Events
| Date | Event |
|---|---|
| September 2023 | Copyright lawsuit filed against Anthropic. |
| February 29, 2024 | Anthropic announces a $1.5 billion settlement agreement. Related reading |