Judge Rejects $1.5 Billion Anthropic Settlement Amid Concerns for Authors
Overview of the Ruling
In a significant ruling, U.S. District Judge William Alsup has declined to approve Anthropic’s unprecedented $1.5 billion settlement related to a piracy lawsuit filed by a group of nearly 500,000 writers. The judge expressed apprehensions about the adequacy of the arrangement, stating that it may not serve the best interests of the authors involved.
Concerns About the Settlement
As reported by Bloomberg Law, Judge Alsup articulated his belief that the class action attorneys may have crafted an agreement that disregards the needs of the authors, declaring that it shouldn’t be “forced down the throat of authors.” He indicated that he felt misinformed about the implications of the settlement, describing it as “nowhere close to complete.”
The judge highlighted critical inquiries that remain unresolved, including:
- A comprehensive list of the works implicated in the case.
- Identification of all authors involved.
- Procedures for notifying class members.
- A finalized claim form for authors to claim their share of the settlement.
Background of the Lawsuit
The lawsuit against Anthropic centers around allegations that the company utilized pirated works to train its advanced language models. If the settlement were finalized, it would allocate $3,000 to each participating author per work. One lawyer representing the authors emphasized that this proposed settlement would surpass any previous copyright recovery known in similar cases.
Future Steps Ordered by the Court
Judge Alsup expressed concern over potential inequities in class action settlements, noting that in many instances, “class members get the shaft” once monetary agreements are established. In light of this, he instructed the attorneys to provide “very good notice” regarding the settlement terms and to create a claim form that would allow authors the option to opt in or out of the agreement.
Additionally, the judge mandated that the settlement contain provisions ensuring that Anthropic cannot face future litigation on the same issues. He set a deadline of September 15 for the attorneys to submit a final list of works involved in the litigation. Furthermore, all documentation—including the list of authors and the claim form—must receive court approval by October 10 before Alsup considers granting preliminary approval for the settlement.
Conclusion
As the litigation evolves, the future of the settlement hangs in balance amid Judge Alsup’s insistence on transparency and fairness for the authors it aims to compensate. The forthcoming developments will determine how effectively the authors can claim their rights in this landmark case.
