Anthropic Signs Settlement in Book Piracy Case

• Anthropic has signed a settlement with authors regarding book piracy.
• The court ruled that the use of books falls under fair use.
• The settlement is expected to be finalized by March 3.

This was reported by TechCrunch, The Verge.

The company Anthropic has signed a settlement in a class action lawsuit with a group of authors who accused the startup of violating copyright laws. In a legal document published on August 26, 2025, Anthropic reported on the achieved "proposed class settlement," which allows for the avoidance of a court process that was supposed to determine how much the company should pay for unauthorized use of copyrighted materials.

The case, known as Bartz v. Anthropic, involves the company's use of books as training material for its language models. The court ruled that the use of Anthropic's books falls under the concept of fair use, despite the fact that many books were pirated, the company could still be liable for substantial financial penalties.

The previous court hearing, which took place in June, was significant for Anthropic, when Judge William Alsup acknowledged that training models on legally acquired books constitutes fair use. However, in a ruling last month, the court acknowledged that the authors' case against Anthropic could continue, as they accused the company of "unlicensed millions of works in the style of Napster." In the event of a trial, the company could face hefty fines.

The settlement, the details of which are currently not disclosed, is expected to be finalized by March 3. The authors' attorney, Justin Nelson, stated that this "historic settlement allows all class members to benefit." Anthropic did not comment on the settlement.

Tags: Technology/AI