The big deal for publishers and authors is the payout per eligible title is $3k. For a traditional publishing contract involving one author, the amount will be split down the middle.
The other thing which caught my eye is the judge slashed the class counsel's fee by half, from 12.5% ($187.5m) to 6.8% ($101m). The class counsel's unreimbursed litigation expenses were $2.6m.
The three class representatives get just $15k each.
I sincerely don't understand what the point of these laws are, when the cost of flagrant violations is no more than a slap on the wrist -- these really meager sums that serve as nothing more than something to point at and say "Look, we did something!"
Cover-your-ass strategy, and nothing more. Who, besides the ones at fault, are ever happy with these mean-nothing fines?
The justice system really needs an overhaul with how it tackles "justice" between the wealthy, the connected, the corporations, and the rest. Though I am unsure what that would look like. Minimum net wealth per category of infraction across the board?
This is a settlement that the authors and Anthropic agreed upon.
They agreed on the amount last year. The judge approved it now.
The lawsuit was for the way the books were acquired. They already ruled that it's not infringement to use the books.
The award was $3,000 per book, which is about 100X higher than it would have cost to buy the books.
It's never going to appease the people who demand companies be sued into collapse, but given that both parties came to an agreement and the damages are 100X higher than what a book costs, it looks reasonable to me.
Civil justice is primarily about restoring damages, not about punishing wrongdoing (although common law in US it is more punitive than civil law in european countries). Therefore compensations are based on damages, not on profit from wrongdoings.
the irony is that all of this money will go to rent-seeking publishers who won't pass it on to the artists; basically a dispute between the wealthy you're upset with
> If there is a current publisher(s) (which still possesses an exclusive license), the author(s) will split the $3000 with the publisher. Any co-authors will share the author portion and, if there are multiple publishers (e.g., different publishers have exclusive rights to different formats), they will share the publisher portion. Assume that the co-authors and co-publishers will share the portion equally unless their contracts provide otherwise. The standard default split between publishers and authors of noneducational texts is 50/50, as described below. Authors who are the sole rightsholder in a work—such as self-published authors and authors whose rights have reverted or where the contracts have otherwise terminated—will receive the full award amount.
It is split between the publisher and the author, also publishers will have a large catalog of books they will submit, an author typically will only have a few -- the payout will be going to the lawyers and mostly to publishers.
> I sincerely don't understand what the point of these laws are, when the cost of flagrant violations is no more than a slap on the wrist -- these really meager sums that serve as nothing more than something to point at and say "Look, we did something!"
To create a moat around wealth generation. After all, that is the main purpose of all legal systems---to keep the wealthy wealthy and the poor poor. In this case, the settlement is chump change for Anthropic, but ensures that no upstart will be able to compete with them since they will get reamed on copyright charges. It's no different from Google Image search. They can make a product out of republishing others' images. You cannot do it.
To keep users paying for content while companies do whatever they want - and if that's not the reason that's certainly an effect.
> The justice system really needs an overhaul with how it tackles "justice" between the wealthy, the connected, the corporations, and the rest. Though I am unsure what that would look like. Minimum net wealth per category of infraction across the board?
% of annual turnover seems like decent strategy. Caps the amount company can sue mere mortal for copyright infringement while at billion dollar company scale can wipe quite a bit
But main problem is enforcement and lobbying, not the size of the fine
A critical distinction, because they were going to to find terabytes of not pirated books to train on that contained the sum history of humanities knowledge /s
> Anthropic spent many millions of dollars to purchase millions of print books, often in used condition. Then, its service providers stripped the books from their bindings, cut their pages to size, and scanned the books into digital form — discarding the paper originals. Each print book resulted in a PDF copy containing images of the scanned pages with machine-readable text (including front and back cover scans for softcover books
This is such a petty and impotent ruling. If you want to ban them from using culture to make derivative works without proper compensation then do that.
But if you don't want to ban them, telling them to buy one book of each, likely second hand, is complete pettiness that resulted in destructive scanning of millions of books, many of which were already practically available in digital form.
As was pointed out, the settlement is for piracy, not training. They had already ruled that Anthropic's use of copyrighted material for training fell within fair use.
As such, if you pirated a book and had to pay $3000 for that one instance, I don't think you'd like it if I said you should have paid $30K or $300K instead. If anything, this is analogous to the ridiculous fines people had to pay when pirating music.
> As such, if you pirated a book and had to pay $3000 for that one instance, I don't think you'd like it if I said you should have paid $30K or $300K instead.
If you pirated a book for personal use the amount of liability wouldn't match a company whose profit could be attributed to pirating the same book. In US copyright law, a copyright infringer could be liable for "any profits of the infringer that are attributable to the infringement" [1] (if the copyright owner elects to recover actual damages and profits instead of statutory damages).
IANAL, but the parent comment quotes "any profits of the infringer that are attributable to the infringement", which I take to mean it's the profit Anthropic stands to make based on its use of the pirated content that's recoverable.
Given the entire global economy is currently bullish on the potential profitability of AI, I dare say they got off incredibly lightly settling for just $3k per book.
Because we are mostly discussing a single private person that got caught for maybe 20 songs. I don't want to bring up Aaron but the taste gets saltier the more we see settlements like this.
If you have the time, read the judge's response to the motion:
https://storage.courtlistener.com/recap/gov.uscourts.cand.43...
The big deal for publishers and authors is the payout per eligible title is $3k. For a traditional publishing contract involving one author, the amount will be split down the middle.
The other thing which caught my eye is the judge slashed the class counsel's fee by half, from 12.5% ($187.5m) to 6.8% ($101m). The class counsel's unreimbursed litigation expenses were $2.6m.
The three class representatives get just $15k each.
I sincerely don't understand what the point of these laws are, when the cost of flagrant violations is no more than a slap on the wrist -- these really meager sums that serve as nothing more than something to point at and say "Look, we did something!"
Cover-your-ass strategy, and nothing more. Who, besides the ones at fault, are ever happy with these mean-nothing fines?
The justice system really needs an overhaul with how it tackles "justice" between the wealthy, the connected, the corporations, and the rest. Though I am unsure what that would look like. Minimum net wealth per category of infraction across the board?
Edit: grammar
This is a settlement that the authors and Anthropic agreed upon.
They agreed on the amount last year. The judge approved it now.
The lawsuit was for the way the books were acquired. They already ruled that it's not infringement to use the books.
The award was $3,000 per book, which is about 100X higher than it would have cost to buy the books.
It's never going to appease the people who demand companies be sued into collapse, but given that both parties came to an agreement and the damages are 100X higher than what a book costs, it looks reasonable to me.
This case did at least shed light on the fair use argument.
> The award was $3,000 per book, which is about 100X higher than it would have cost to buy the books.
How many of the authors would license their book for endless creation of derivative works for that amount?
The judge already ruled that it was fair for Anthropic to use books for training if they acquired them legally.
Probably few, but irrelevant as the ruling was it was not a derivative work.
Civil justice is primarily about restoring damages, not about punishing wrongdoing (although common law in US it is more punitive than civil law in european countries). Therefore compensations are based on damages, not on profit from wrongdoings.
Punishable by fine just means it's legal for a cost. If the fine is less than the profit then they'll pay the fine every time.
the irony is that all of this money will go to rent-seeking publishers who won't pass it on to the artists; basically a dispute between the wealthy you're upset with
The lawsuit was a mixed blend of individual authors and publishers.
It was started by a group of authors, not publishers.
For the downvotes, my response is to read: https://authorsguild.org/advocacy/artificial-intelligence/wh...
> If there is a current publisher(s) (which still possesses an exclusive license), the author(s) will split the $3000 with the publisher. Any co-authors will share the author portion and, if there are multiple publishers (e.g., different publishers have exclusive rights to different formats), they will share the publisher portion. Assume that the co-authors and co-publishers will share the portion equally unless their contracts provide otherwise. The standard default split between publishers and authors of noneducational texts is 50/50, as described below. Authors who are the sole rightsholder in a work—such as self-published authors and authors whose rights have reverted or where the contracts have otherwise terminated—will receive the full award amount.
It is split between the publisher and the author, also publishers will have a large catalog of books they will submit, an author typically will only have a few -- the payout will be going to the lawyers and mostly to publishers.
Not true. Individual authors could sign up for the settlement. One of my books was in there under my name.
What's gonna be your payout and are you satisfied with it?
Because using pirated material is a civil issue, not a criminal offence?
> I sincerely don't understand what the point of these laws are, when the cost of flagrant violations is no more than a slap on the wrist -- these really meager sums that serve as nothing more than something to point at and say "Look, we did something!"
To create a moat around wealth generation. After all, that is the main purpose of all legal systems---to keep the wealthy wealthy and the poor poor. In this case, the settlement is chump change for Anthropic, but ensures that no upstart will be able to compete with them since they will get reamed on copyright charges. It's no different from Google Image search. They can make a product out of republishing others' images. You cannot do it.
The laws are for you and me not companies like Anthropic and Meta.
To keep users paying for content while companies do whatever they want - and if that's not the reason that's certainly an effect.
> The justice system really needs an overhaul with how it tackles "justice" between the wealthy, the connected, the corporations, and the rest. Though I am unsure what that would look like. Minimum net wealth per category of infraction across the board?
% of annual turnover seems like decent strategy. Caps the amount company can sue mere mortal for copyright infringement while at billion dollar company scale can wipe quite a bit
But main problem is enforcement and lobbying, not the size of the fine
To be clear, the issue is not that the books were used to train Claude, but that they were pirated.
A critical distinction, because they were going to to find terabytes of not pirated books to train on that contained the sum history of humanities knowledge /s
They actually did this.
> Anthropic spent many millions of dollars to purchase millions of print books, often in used condition. Then, its service providers stripped the books from their bindings, cut their pages to size, and scanned the books into digital form — discarding the paper originals. Each print book resulted in a PDF copy containing images of the scanned pages with machine-readable text (including front and back cover scans for softcover books
They bought, scannned, trained from, and destroyed millions of paper books, which was ruled legal. This lawsuit was for training from LibGen.
This is such a petty and impotent ruling. If you want to ban them from using culture to make derivative works without proper compensation then do that.
But if you don't want to ban them, telling them to buy one book of each, likely second hand, is complete pettiness that resulted in destructive scanning of millions of books, many of which were already practically available in digital form.
They could have purchased the books instead. It was easier to pirate.
Seems squarely in the "cost of doing business" category
Are "open" models exempt from that? Can imagine they used the same datasets.
Many of the open weight models are trained on outputs from these models (distillation)
If they provably shared those datasets then they're just as liable for piracy.
Most open models are developed for profit so they should be equally liable.
that number is missing a zero or two in front of the decimal point
As was pointed out, the settlement is for piracy, not training. They had already ruled that Anthropic's use of copyrighted material for training fell within fair use.
As such, if you pirated a book and had to pay $3000 for that one instance, I don't think you'd like it if I said you should have paid $30K or $300K instead. If anything, this is analogous to the ridiculous fines people had to pay when pirating music.
(Not that I'm complaining...)
> As such, if you pirated a book and had to pay $3000 for that one instance, I don't think you'd like it if I said you should have paid $30K or $300K instead.
If you pirated a book for personal use the amount of liability wouldn't match a company whose profit could be attributed to pirating the same book. In US copyright law, a copyright infringer could be liable for "any profits of the infringer that are attributable to the infringement" [1] (if the copyright owner elects to recover actual damages and profits instead of statutory damages).
[1] 17 U.S.C. § 504(b), https://www.law.cornell.edu/uscode/text/17/504
I would imagine that for over 99% of the books covered in this lawsuit, they're earning less than $3000 per book.
Put another way, their revenues wouldn't drop much if they simply hadn't trained on those 99%.
IANAL, but the parent comment quotes "any profits of the infringer that are attributable to the infringement", which I take to mean it's the profit Anthropic stands to make based on its use of the pirated content that's recoverable.
Given the entire global economy is currently bullish on the potential profitability of AI, I dare say they got off incredibly lightly settling for just $3k per book.
Thomas-Rasset got 80k per song and Tennenbaum got 22k per song. The law says up to 150k per work. It was a gift.
Sure, but in any other instance of piracy, HN would call awarding $20k per pirated song insane.
Because we are mostly discussing a single private person that got caught for maybe 20 songs. I don't want to bring up Aaron but the taste gets saltier the more we see settlements like this.
So... What about authors from other parts of the world? USA has settled a USA case and they think all is cool for the entire world. So americentric.
$3k a book is so cheap.
Its probably 100x more than it would have cost to do it legitimately, so seems like reasonable damages to me
Maybe they can give it in the form of expiring Fable credits.
So that the authors can use it to write their next books!