Anthropic's $1.5 billion copyright class action settlement approved by US judge

By: The Hindu Bureau

A U.S. federal judge in San Francisco on Monday (July 21, 2026) approved a $1.5 billion settlement in a copyright class action lawsuit brought by authors and publishers against Anthropic, the maker of the Claude chatbot.

The settlement received preliminary approval in 2025 from Judge William Alsup of the U.S. District Court for the Northern District of California. Judge Araceli Martinez-Olguin has now issued the final approval.

An Anthropic counsel stated that more than 91% of authors and publishers covered by the settlement had claimed their share.

Background of the Lawsuit

The settlement stems from allegations that Anthropic used copyrighted works to train its AI models. According to the lawsuit, the AI lab accessed published works through shadow libraries such as LibGen and Pirate Library Mirror, violating copyright laws in the process.

While Judge Alsup ruled last year that Anthropic’s use of creative works fell under fair use, the court took issue with how the company saved millions of pirated books.

Compensation Details

• Authors and publishers were slated to receive $3,000 per work
• The settlement covers an estimated 500,000 works
• Payments are shared based on ownership rights

Mixed Reactions from Creators

While the settlement is a landmark development, it represents a mixed result for many authors and creators:

• Several continue to call for stricter laws to protect creative works from being pirated or scraped by AI companies
• Other creators’ lawsuits against Anthropic over related issues are still pending
• Some advocates focus on fair compensation, while others demand stronger penalties and fines for violators worldwide

Broader Context

Multiple similar lawsuits against AI companies—including Google, Meta, and OpenAI—are ongoing. As Anthropic’s case ended in a settlement, it remains to be seen how other U.S. judges will interpret book piracy allegations leveled against AI companies.