ASHLEY BELANGER , Ars Technica; Anthropic’s $1.5B copyright settlement is getting messy as judge delays approval
"After several authors and class members raised objections to Anthropic’s $1.5 billion settlement over its widespread book piracy to train AI, a federal judge has delayed final approvals of the settlement.
On Thursday, US District Judge Araceli Martinez-Olguin declined to rubber-stamp what’s regarded as the largest copyright settlement in US history. Instead, she wanted to better understand why some class members were objecting and opting out of the settlement. So, she asked authors to address key concerns of objectors, who argued that lawyers’ compensation was way too high and payments to class members were a “pittance.”...
Objectors may not win every fight, but they have seemingly persuaded the court to at least entertain their strongly worded pleas, including warnings that the settlement may not survive an appeal if the terms aren’t re-examined. Notably, their objections came shortly before a group of 25 class members opting out of the settlement filed a new lawsuit, showing that Anthropic is not done fighting these claims.
“For the Court to agree that counsel’s request of nearly a third of a billion dollars, while individual plaintiffs settle for a pittance of available compensation and no protections against future abuse is an aberration of civil justice and a slap in the face to all those who labored to publish their works,” Story said. “Such a decision would also further the too-often-observed stereotype that … class-action Plaintiffs are merely tools used to obtain Powerball-size payouts to attorneys.”
Judge William Alsup, who initially approved the settlement but has since retired, also questioned whether the lawyers’ fees were too high. Worried that the settlement was being “shoved down the throat of authors,” he recommended an independent investigation to ensure no improper attorneys’ fees would be granted, but according to Lea Bishop, a non-class member objector and professor of copyright law, the recommendation “was not squarely disclosed to incoming Judge Martinez-Olguin” in a status report submitted by authors’ lawyers. Additionally, class members weren’t notified of the investigation.
Authors must respond to objections raised by May 21, when Anthropic will also have to file a brief explaining “why late opt outs should not be honored,” the judge ordered."
