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Key Updates on the $1.5 Billion Anthropic Settlement

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September 5: On September 5, 2025, Anthropic agreed to pay $1.5 billion to settle claims that it downloaded pirated books to train its AI systems—the largest U.S. copyright settlement in history. The parties in Bartz v Anthropic, one of the major copyright lawsuits brought by authors against an AI company for using pirated books to train its large language models, filed a proposed settlement agreement with the court that would settle the claims regarding the company’s mass piracy in downloading millions of books from notorious pirate sources LibGen and PiLiMi (a mirror of Anna’s Archive) and retaining them in a central library.

The proposed settlement provides that Anthropic will pay $1.5 billion plus interest in cash into a settlement fund, representing the largest U.S. copyright infringement settlement ever and greater than any copyright damages award ever secured. The amount of the award sends a signal to all AI companies that downloading illegal copies of books to train AI comes with a heavy cost and, we expect, will foster further licensing, given the potential enormous liability AI companies risk when they help themselves to books for free from illegal channels. 

“This historic settlement is a vital step in acknowledging that AI companies cannot simply steal authors’ creative work to build their AI just because they need books to develop quality LLMs,” said Authors Guild CEO Mary Rasenberger. “It is truly shocking that Anthropic and the other major LLM owners engaged in criminal-level piracy schemes to torrent millions of books knowingly from infamous foreign ebook piracy sites that the publishing industry has actively been trying to take down for years. Imagine the outrage if Anthropic and others had illegally siphoned off electricity to build their AI, claiming it was too expensive to pay for it? These vastly rich companies, worth billions, stole from those earning a median income of barely $20,000 a year. This settlement sends a clear message that AI companies must pay for the books they use just as they pay for the other essential components of their LLMs.  This settlement lays down an anchor that it is not okay. We expect that the settlement will lead to more licensing that gives author both compensation and control over the use of their work by AI companies, as should be the case in a functioning free market society.” 

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