Anthropic $1.5 Billion AI Copyright Settlement Faces Judicial Scrutiny Overview A federal judge overseeing the proposed $1.5 billion copyright settlement involving AI company Anthropic PBC expressed significant concerns regarding the fairness and completeness of the deal. The settlement addresses allegations that Anthropic improperly downloaded millions of pirated books, marking one of the first major copyright disputes against AI firms. Key Details Judge William Alsup's Position: Denied the motion to approve the settlement without prejudice. Postponed approval pending further clarifications on: The claims process for class members. A final list of works covered by the deal (~465,000 works). Notification procedures for potential class members. Feels "misled" and apprehensive about the deal forcing an agreement on authors. Concerned that class members may be disadvantaged if attorneys stop advocating after monetary relief. Requires clear opt-in claim forms, with disputes over ownership to be handled in state courts. Stressed the need for a "very good notice" to ensure class members can opt in or out. Parties Involved: Authors represented by firms including Susman Godfrey LLP, Lieff Cabraser, Edelson PC, and others. Anthropic represented by Cooley LLP, Arnold & Porter Kaye Scholer LLP, Latham & Watkins LLP, and more. Settlement Characteristics: Proposed $3,000 payment per book as compensation. One of the largest copyright settlements in U.S. history, setting a potential benchmark for AI-related copyright claims involving companies like OpenAI, Meta Platforms, and Midjourney. Additional Observations: Attorneys for authors assure commitment to compensate all legitimate claims. Judge Alsup admonished the use of multiple attorneys to work on settlement distribution, warning that additional attorneys not involved initially won't be paid from the settlement funds. Association of American Publishers president Maria A. Pallante criticized the court’s understanding of the publishing industry and the envisaged claims process as unworkable. Related Resources Proposed settlement document Court docket Case Citation Bartz v. Anthropic PBC, Northern District of California, Case No. 24-cv-5417 Hearing held on September 8, 2025 --- Reporter: Annelise Levy, Bloomberg Law For further contact: agilbert1@bloombergindustry.com