Anthropic wins copyright lawsuit battle

A federal judge in San Francisco ruled late on Monday that Anthropic's use of books without permission to train its artificial intelligence system was legal under US copyright law, reported Reuters.

Siding with tech companies on a pivotal question for the AI industry, US District Judge William Alsup said Anthropic made "fair use" of books by writers Andrea Bartz, Charles Graeber and Kirk Wallace Johnson to train its Claude large language model.

Alsup also said, however, that Anthropic's copying and storage of more than 7 million pirated books in a "central library" infringed the authors' copyrights and was not fair use. The judge has ordered a trial in December to determine how much Anthropic owes for the infringement.

US copyright law says that willful copyright infringement can justify statutory damages of up to $150,000 per work.

An Anthropic spokesperson said the company was pleased that the court recognised its AI training was "transformative" and "consistent with copyright's purpose in enabling creativity and fostering scientific progress."

The writers filed the proposed class action against Anthropic last year, arguing that the company, which is backed by Amazon and Alphabet, used pirated versions of their books without permission or compensation to teach Claude to respond to human prompts.

The proposed class action is one of several lawsuits brought by authors, news outlets and other copyright owners against companies including OpenAI, Microsoft and Meta Platforms over their AI training.

The doctrine of fair use allows the use of copyrighted works without the copyright owner's permission in some circumstances.

Fair use is a key legal defense for the tech companies, and Alsup's decision is the first to address it in the context of generative AI.

AI companies argue their systems make fair use of copyrighted material to create new, transformative content, and that being forced to pay copyright holders for their work could hamstring the burgeoning AI industry.