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Anthropic agrees to settle copyright infringement class action suit - what it means

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ZDNET key takeaways

Anthropic is settling a class action lawsuit with three authors.

The authors claim Anthropic trained AI on their pirated work.

The future of AI and fair usage is still unclear.

AI startup Anthropic has agreed to settle a class action lawsuit against three authors for the tech company's misuse of their work to train its Claude chatbot.

Also: Claude wins high praise from a Supreme Court justice - is AI's legal losing streak over?

The writers claimed that Anthropic used the authors' pirated works to train Claude, its family of large language models (LLMs), on prompt generation. The AI startup negotiated a "proposed class settlement," Anthropic announced Tuesday, to forgo a trial determining how much it would owe for the infringement.

The preliminary settlement's details are scarce. In June, a judge ruled that Anthropic's legal purchase of books to train its chatbot was fair use -- that is, free to use without payment or permission from the copyright holder. However, some of Anthropic's tactics, like using a website called LibGen, constituted piracy, the judge ruled. Anthropic could have been forced to pay over $1 trillion in damages over piracy claims, Wired reports.

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