Judge Questions Transparency in Anthropic’s $1.5B Copyright Settlement

U.S. Judge William Alsup has raised concerns over the proposed $1.5 billion copyright settlement involving AI firm Anthropic PBC, suggesting class action lawyers may be negotiating in secret. The federal judge denied initial approval of the deal, demanding clearer disclosure of claim processes for affected authors.

Alsup's skepticism stems from perceived opacity in negotiations and the unprecedented scale of damages. "Training use was a fair use," he noted, acknowledging Anthropic's right to use legally acquired materials for AI development, while distinguishing unlawfully obtained content that prompted the massive settlement figure.

The Northern District of California judge postponed final approval pending supplemental filings, revealing discomfort with both the monetary magnitude and procedural ambiguity. Counsel for authors maintains the settlement's validity, though Alsup warned the agreement remains far from finalized.