AI Settlement Sparks Legal Tug-of-War Among Authors, Publishers
Authors anticipating payments from Anthropic's $1.5 billion copyright settlement are encountering unexpected issues, with publishers and even literary agents allegedly making claims on their funds. While some attribute this to poor record-keeping, the widespread nature of the complaints suggests a more systemic problem within the settlement distribution process, prompting concern among the literary community.
Authors awaiting their share of Anthropic’s substantial $1.5 billion copyright settlement have reported receiving unexpected emails, indicating that other entities are making claims on their allocated payments. This development follows a landmark copyright class action suit settled last year, where a judge affirmed that training AI models on copyrighted material is permissible under fair use doctrine, but pirating such material is not. The settlement, which received final approval in July, aims to compensate authors for works used without permission, with payments now poised to move forward.
Under the terms of the agreement, authors of nearly 500,000 titles are slated to receive $3,000 for each pirated work. The distribution of these funds is nuanced: if a book remains in-print with a traditional publisher, the payment is to be split equally, 50-50, between the author and the publisher. Conversely, if a book was self-published, or if the publisher had reverted the rights by allowing the book to go out-of-print, the author is entitled to the entire payment. However, authors have taken to social media platforms to voice concerns that publishers appear to be claiming more than their rightful share.
One notable example comes from mystery and thriller author April Henry, who expressed frustration after HarperCollins allegedly claimed one of her books in the Anthropic settlement, despite its rights having reverted at least 17 years prior. Simultaneously, Henry received a credit alert indicating HarperCollins had been added as her employer, a status she asserts they never held. Victoria Strauss of the popular blog Writers Beware has also confirmed a surge in author complaints, which broadly fall into two categories: publishers seeking payment for works where they no longer hold legitimate claims due to reverted rights, and publishers demanding a full 100% payment when they are only entitled to 50%.
While Strauss initially expressed reluctance to attribute these discrepancies to malice, suggesting they could be explained by poor record-keeping, she noted that some publishers have already acknowledged these as mistakes and requested corrections from Anthropic. Similarly, Authors Guild CEO Mary Rasenberger conveyed to The New York Times that she does not perceive this as a deliberate