AI firm Anthropic’s $1.5 billion deal to placate a class of U.S authors has hit a standstill. This major settlement, aimed to soothe allegations of the company training its AI models on copyrighted books, is being placed under considerable examination by the law. Why? It seems a federal judge finds the transparency and fairness of the deal questionable and the situation deserves a second look.
Let’s dive into what got us here. During a recent hearing, none other than Judge William Alsup held back his approval on the settlement. His reasoning? The fears of a largely undisclosed agreement potentially tipping the scales against authors. Reports from Bloomberg Law und die Associated Press quoted him saying the deal could be forced on authors without fair warning or consent. It doesn’t exactly sound like they got a seat at the negotiation table, does it?
Previously, the court had given a nod to Anthropic, ruling AI model training via legally bought books could be classified as fair use. Nevertheless, that victory might not cover all bases leaving Anthropic at risk for potential liability in cases where unauthorized material might have been used. This halted settlement was designed to take care of those specific claims, offering financial relief to those affected authors and publishers.
Speaking of relief, if the settlement gets the green light, the payout for authors could be in the ballpark of $3,000 per work. With roughly 465,000 books caught in this controversy, the total payout wouldn’t exactly be pocket change. Judge Alsup, however, wants a more precise count of the number of works involved. His concern also extends to the potential emergence of new lawsuits if the settlement fell short in clarity and proper communication to stakeholders.
Interestingly, not everyone welcomed the judge’s skepticism. Maria Pallante, CEO of the Association of American Publishers, felt the judge’s stance was a misunderstanding of the publishing industry dynamics. Her argument is that class actions should be resolving disputes, not triggering new ones. Nonetheless, legal representatives for the authors, like attorney Justin Nelson, ensure their commitment to guarantee that every legitimate claim receives its due compensation.
As for the future of the settlement? Judge Alsup plans to revisit it during a hearing on September 25th. Until then, the agreement hangs on the balance. Echoing his ambivalent sentiment towards the whole situation, he said, “We’ll see if I can hold my nose and approve it.” Safe to say, doubt still looms around the fairness and execution of this deal.
Get the full picture from the original article on The Verge.
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