GoKawiilCourt ruling leaves AI book-training legality murky despite Anthropic's $1.5B settlement
A landmark ruling by Judge William Alsup found that Anthropic's use of copyrighted books to train its AI models was lawful under fair use, even though the company was penalized $1.5 billion for obtaining those books through pirated shadow libraries. Attorney Cathy Gellis explains that the judge distinguished between illegally acquiring texts and the act of training an AI on them, comparing the latter to a writer studying literature rather than copying it.
GoKawiil's interpretation of the reporting above, not reported fact.
This ruling sets an early legal precedent suggesting that AI companies may not face liability simply for training on copyrighted material, as long as the material wasn't obtained illegally. For an industry projected to generate hundreds of billions in revenue, a billion-dollar fine tied to piracy—not training itself—may be seen as a minor cost of doing business, potentially emboldening further use of copyrighted works for AI development.
- Judge Alsup ruled Anthropic's AI training on copyrighted books was legal, akin to reading rather than copying.
- The $1.5 billion penalty was specifically for acquiring books through illegal shadow libraries, not for the training itself.
- Legal experts view the ruling as favorable to AI companies, given the relatively small financial impact compared to industry revenue projections.
The Copyright Handbook by Nolo — If this article left you wanting to actually understand fair use, licensing, and what rights authors hold, Nolo's Copyright Handbook is a plain-English reference written for creators rather than lawyers. It's a handy desk companion for writers trying to make sense of how their work can legally be used.
See The Copyright Handbook by Nolo on Amazon → Affiliate link — we may earn a commission on purchases, at no extra cost to you. Product picked by AI based on this article; it is not a tested recommendation.Source: techcrunch.com — Amanda Silberling, 2026-08-23
Published there as: “Is it legal to train AI models on copyrighted books? It’s complicated”
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