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Anthropic agrees to pay 1.5 billion to resolve a copyright demand

by Priya Shah – Business Editor

Anthropic,⁢ the artificial intelligence firm ⁣backed by Amazon and Google, has agreed to a $1.5 billion⁤ settlement to resolve a copyright ⁣infringement lawsuit filed by a collective of authors, including Margaret Atwood and Jonathan Franzen. The agreement, reached September ‍6, 2024, addresses⁣ claims that anthropic unlawfully used copyrighted books to train its large language models.The lawsuit, initially brought in September 2023,⁣ alleged that Anthropic’s ‌AI systems-including its Claude chatbot-were built using billions of copyrighted works⁤ without‍ permission, violating authors’ exclusive rights.This settlement marks a notable moment⁣ in the ongoing legal battles surrounding the use of copyrighted material in the development of generative ⁢AI, potentially setting a precedent for⁣ future cases⁤ and influencing how AI companies approach data sourcing.

The authors alleged that‌ Anthropic “copied their‍ works” ‌to create a competing product. The complaint detailed how Anthropic’s models ingested and learned from copyrighted books, effectively creating derivative‍ works without compensating the original authors.The class-action suit sought damages for the unauthorized use of their intellectual ‍property.

Anthropic confirmed the settlement in a statement,noting the agreement includes a licensing framework for authors to opt-in to having their works ‌used for AI training in the future.⁣ The company⁢ stated it is “committed to ‌supporting a vibrant ecosystem for writers and creators.” The settlement requires court approval and is expected to be finalized in the coming months.

The case highlights the broader ⁢concerns surrounding copyright and AI, as generative AI models rely on massive datasets-frequently enough including copyrighted material-to ⁤function. Similar ⁣lawsuits have been filed against​ OpenAI and Meta, ⁣raising essential questions ‍about⁣ fair use, intellectual property rights, and the future of creative work in the age ​of artificial intelligence.

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