Anthropic's $1.5 billion book settlement, the largest copyright deal in US history, is unraveling as authors and publishers clash over payouts. The company must pay $3,000 for each illegally downloaded book used to train its chatbot Claude. Over 482,000 titles are affected, but disputes over who gets paid have led to competing claims from authors and publishers.
Mary Rasenberger, head of the Authors Guild, said many publishers lack accurate records of reverted rights, leaving authors with as little as 10 to 15 percent under their contracts. Textbook authors are particularly affected, with some receiving minimal shares. Literary agencies are also claiming shares despite having no legal standing, according to Writer Beware.
Author April Henry discovered that HarperCollins was claiming rights to a book that had long since reverted to her. A nonfiction author said her publisher wanted to give her just 10 percent. A court had ruled Anthropic's use of illegally obtained books unlawful but deemed training on legally purchased books fair use.
"Many publishers don't keep accurate records of rights that have reverted to authors," said Mary Rasenberger, head of the Authors Guild. This lack of record-keeping has led to disputes over how much authors should receive from the settlement.
The settlement follows a court ruling that found Anthropic's use of illegally obtained books unlawful. The court also deemed training on legally purchased books as fair use, complicating the payout process. For unresolved disputes, a court-appointed arbitrator will step in to mediate.
Anthropic did not say how it will resolve the disputes, and the process remains unclear. A court-appointed arbitrator will step in for unresolved cases. The situation highlights the challenges of distributing large settlements in complex copyright cases.
Source: thedecoder
