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Anthropic Faces Potentially "Business-Ending" Copyright Lawsuit
A class action over pirated books exposes the 'responsible' AI company to penalties that could bankrupt it — and reshape the entire industry
Anthropic, for its part, told Obsolete it “respectfully disagrees” with the decision, arguing the court “failed to properly account for the significant challenges and inefficiencies of having to establish valid ownership millions of times over in a single lawsuit,” and said it is “exploring all avenues for review.” The previous record for a case like this was set in 2019, when a federal jury found Cox Communications liable for $1 billion after the nation’s biggest music labels accused the company of turning a blind eye to rampant piracy by its internet customers. For now, Anthropic’s best shot is to win on appeal and convince a higher court to reject Judge Alsup’s reasoning in favor of the more company-friendly approach taken in the Meta case, which treats the act of training as fair use and effectively rolls the infringing downloads into that single use.
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