Anthropic PBC, the artificial intelligence company behind the chatbot Claude, has agreed to a $1.5 billion settlement to resolve a class-action lawsuit filed by authors who alleged the unauthorized use of their copyrighted works for AI training. The proposed settlement, which would compensate authors approximately $3,000 per book, is currently under judicial review.
The lawsuit, initiated by authors including Andrea Bartz, Charles Graeber, and Kirk Wallace Johnson, accused Anthropic of downloading millions of books from sources such as Library Genesis and Pirate Library Mirror to train its AI models without obtaining proper licenses. In June 2025, U.S. District Judge William Alsup ruled that while the use of legally obtained books for AI training could be considered fair use, the acquisition of pirated copies constituted copyright infringement. ([reuters.com](https://www.reuters.com/sustainability/boards-policy-regulation/anthropic-tells-us-judge-it-will-pay-15-billion-settle-author-class-action-2025-09-05/?utm_source=openai))
The settlement, if approved, would be the largest copyright recovery in U.S. history. Anthropic has also agreed to destroy the pirated copies used in the training process. The agreement does not release any claims related to AI-generated outputs or conduct after August 25, 2025. ([lieffcabraser.com](https://www.lieffcabraser.com/2025/09/authors-secure-1-5-billion-settlement-in-landmark-ai-piracy-case/?utm_source=openai))
Judge Alsup has expressed concerns regarding the transparency and fairness of the proposed settlement. He has requested additional information about the affected works and authors, setting deadlines for the parties to provide a final list of pirated books and a sample claims form. A hearing is scheduled for September 25 to further assess the adequacy of the settlement. ([apnews.com](https://apnews.com/article/b282fe615338bf1f98ad97cb82e978a1?utm_source=openai))
Industry leaders have criticized the judge’s response, arguing that he misunderstood the publishing industry and underestimated the challenges a complex claims process would pose. Authors Guild CEO Mary Rasenberger dismissed the judge’s suggestion of undue influence on authors as mistaken. ([reuters.com](https://www.reuters.com/legal/government/anthropics-15-billion-copyright-settlement-faces-judges-scrutiny-2025-09-09/?utm_source=openai))
This case is among the first in a series of lawsuits targeting AI companies over the use of copyrighted materials for training purposes. The outcome of this settlement could set a precedent for how AI firms handle copyrighted content moving forward. ([news.bloomberglaw.com](https://news.bloomberglaw.com/class-action/anthropic-to-pay-1-5-billion-to-settle-author-copyright-claims?utm_source=openai))