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The Courts AI

AI Industry Horrified To Face Largest Copyright Class Action Ever Certified (arstechnica.com) 187

An anonymous reader quotes a report from Ars Technica: AI industry groups are urging an appeals court to block what they say is the largest copyright class action ever certified. They've warned that a single lawsuit raised by three authors over Anthropic's AI training now threatens to "financially ruin" the entire AI industry if up to 7 million claimants end up joining the litigation and forcing a settlement. Last week, Anthropic petitioned (PDF) to appeal the class certification, urging the court to weigh questions that the district court judge, William Alsup, seemingly did not. Alsup allegedly failed to conduct a "rigorous analysis" of the potential class and instead based his judgment on his "50 years" of experience, Anthropic said.

If the appeals court denies the petition, Anthropic argued, the emerging company may be doomed. As Anthropic argued, it now "faces hundreds of billions of dollars in potential damages liability at trial in four months" based on a class certification rushed at "warp speed" that involves "up to seven million potential claimants, whose works span a century of publishing history," each possibly triggering a $150,000 fine. Confronted with such extreme potential damages, Anthropic may lose its rights to raise valid defenses of its AI training, deciding it would be more prudent to settle, the company argued. And that could set an alarming precedent, considering all the other lawsuits generative AI (GenAI) companies face over training on copyrighted materials, Anthropic argued. "One district court's errors should not be allowed to decide the fate of a transformational GenAI company like Anthropic or so heavily influence the future of the GenAI industry generally," Anthropic wrote. "This Court can and should intervene now."

In a court filing Thursday, the Consumer Technology Association and the Computer and Communications Industry Association backed Anthropic, warning the appeals court that "the district court's erroneous class certification" would threaten "immense harm not only to a single AI company, but to the entire fledgling AI industry and to America's global technological competitiveness." According to the groups, allowing copyright class actions in AI training cases will result in a future where copyright questions remain unresolved and the risk of "emboldened" claimants forcing enormous settlements will chill investments in AI. "Such potential liability in this case exerts incredibly coercive settlement pressure for Anthropic," industry groups argued, concluding that "as generative AI begins to shape the trajectory of the global economy, the technology industry cannot withstand such devastating litigation. The United States currently may be the global leader in AI development, but that could change if litigation stymies investment by imposing excessive damages on AI companies."

AI Industry Horrified To Face Largest Copyright Class Action Ever Certified

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  • Maybe? (Score:5, Insightful)

    by fropenn ( 1116699 ) on Friday August 08, 2025 @06:08PM (#65576172)

    They've warned that a single lawsuit raised by three authors over Anthropic's AI training now threatens to "financially ruin" the entire AI industry if up to 7 million claimants end up joining the litigation and forcing a settlement

    Maybe don't steal stuff from so many people if you can't handle the consequences?

    • by Dr. Tom ( 23206 )

      keyword "if"

    • Many people rely Open AI and Anthropic. For example, I use their products to write a lot of bash scripts. If those companies go offline, where will people turn? Will everyone flock to Chinese AI offerings? It is going to be a lot harder to shut down those for IP reasons.

      • Re: (Score:2, Funny)

        by troff ( 529250 )

        > For example, I use their products to write a lot of bash scripts. If those companies go offline, where will people turn?

        How about pick up a fucking book and learn how to use your fucking computer like you weren't a decerebrate child? If you can't write bash scripts, then go back to your fucking Windows box.

      • Maybe write it yourself?
        Or, if it's a large thing, see if your friends (who happen to know bash) can help.

    • I expect that if the Courts were to step in and help enforce copyright, the US Gov't would make sure that the AI companies can continue to take everything for free (or nearly free), otherwise the US "would lose the AI war to China". IMHO this is an example of an industry "too big to fail"
  • LMFAO! (Score:4, Insightful)

    by Shakes Fist ( 10502847 ) on Friday August 08, 2025 @06:08PM (#65576174)
    I laughed so loud! These tech bros creaming in billions and now might have to face the consequences of producing a hallucinogenic program used to threaten millions of workers? Screw them.
  • But we're rich (Score:5, Insightful)

    by medusa-v2 ( 3669719 ) on Friday August 08, 2025 @06:14PM (#65576186)

    Once upon a time, things didn't work out for Napster. Personally I felt that copyright rules had been skewed too far against the general public, but in that time period the general pattern was that if you couldn't run a business without breaking the law, then you'd just go out of business.

    I guess these days I still feel like the rules are still skewed too far against the general public. The big difference now is this expectation that not only do the extremely wealthy rewrite the rules in their favor, they also take it as a given that if, somehow, they encounter a rule that doesn't let them do whatever they want, the rule must not have been intended to apply to them in the first place, so why should they even have to go to the trouble of getting it rewritten before they ignore it?

  • by Rinnon ( 1474161 ) on Friday August 08, 2025 @06:17PM (#65576192)

    "One district court's errors should not be allowed to decide the fate of a transformational GenAI company like Anthropic or so heavily influence the future of the GenAI industry generally,"

    Translation: "We're so big and important that we're above the law."

  • by RitchCraft ( 6454710 ) on Friday August 08, 2025 @06:18PM (#65576198)

    Sorry, there is no love lost here. These companies have been pushing snake oil for long enough. Time to rid the yard of snakes.

    • by Dr. Tom ( 23206 )

      Fun fact, in Japan they call it Toad Oil, "gama no abura"

      It's exactly the same thing, except toads instead of snakes

  • by gurps_npc ( 621217 ) on Friday August 08, 2025 @06:18PM (#65576202) Homepage

    The artists are far more horrified by how AI is destroying their business.

    Voiceovers, commercial artwork, etc. have all become 'cheap' because they no longer need to pay artists.

    The artists find the total elimination of their work to be devastating.

    • by djinn6 ( 1868030 )

      That's a different problem that won't be solved with lawsuits. Once the technology exists, they will be replaced. The only question is when.

      Consider how many legal jurisdictions still force people to hire horse carriages if they don't want to walk or bike. There's Mackinac Island and a few other tourist destinations with a few hundred residents each.

      How many ban the internet? Just North Korea, but they still have their own internal version.

      How many ban knitting machines? None that I can find.

      Future artists

  • by sziring ( 2245650 ) on Friday August 08, 2025 @06:20PM (#65576212)

    If they can't pay upfront they need to make good with some other method.. shares (public or private) or something of value perpetual revenue from MAX accounts etc. It is beyond crazy how they argue it's fair when it isn't. If I trained my AI using their system they would slap me with a lawsuit so fast.. but hey might makes right

  • by wakeboarder ( 2695839 ) on Friday August 08, 2025 @06:22PM (#65576220)

    The US gov isn't going to let AI die, they'll hash a compromise with the copyright holders. The stupid thing is and individual can't break copyright, they'll loose their whole net worth over copyright infringement. A corporation can do copyright infringement and get away with it (or maybe not). If they go after anthropic, Open AI and Meta are next.

    • by troff ( 529250 )

      > The US gov isn't going to let AI die
      Clearly the US gov needs to die right along with AI.

  • Well if it isn't the consequences of my own actions. All I have to say about this is, good, fuck 'em. If your business can't survive without stealing from others, your business doesn't need to exist and should be illegal.
  • by dskoll ( 99328 ) on Friday August 08, 2025 @06:25PM (#65576234) Homepage

    About time the AI industry is held accountable for its theft.

    And no, I don't condone stealing software, movies or videogames either. But these AI companies are stealing on a far more massive scale than someone who copies the odd movie or game.

    • I think the difference between just copying something to use for your own personal usage is nothing like what these AI companies are doing. Now if I was distributing these things I copied and charging money for it, that would be akin to what these AI companies are doing.

  • by lazycam ( 1007621 ) on Friday August 08, 2025 @06:37PM (#65576256)
    This is how the U.S. cedes its lead to China or any other country willing to make the investment.
    • It's lead in what exactly? Unemployment? AI Slop generation? Homeless people?

      If these tech companies get what they want we'll all be wage slave prisoners shuffling around in the dirt of their techno-utopia city-states while they invent creative new ways to entertain the idle rich and casually live out their lives in extreme wealth and opulence on the backs of the rest of us.

      Fuck em..

      • That's not an excuse to restrict knowledge or technological progress. Do you seriously believe other countries AI startups will not do the same and we won't even have a seat at the table? I agree, respect for private property is a critical component of our modern system of copyright. However, as some other users have pointed out, this feels like an opportunity review modern guidelines on fair use and the corporate structures/entities that are allowed to form around these AI technologies. Just my two cents.
        • If they can't figure out a way to pay people for their work, why should they be allowed to have it? They're just impoverishing people that actually spent time and energy and their own money to make things, and they're saying they should get it 'because'.

          Is your problem with people doing it on an individual basis that the crime is too small, or?

          They didn't even pay for the value of a single book before slurping it up. They scrape videos and obviously never watch any ads or would even need any of the products if they did. They're undermining everything to sell your own creativeness back to you. It's gross.

          This isn't the same as the early days of the internet where people downloading musing were shown to, on balance, buy MORE music than average. There's no argument that it's actually good advertising or disseminating work to the public so it can be discovered. They're just taking it, and they reap all the profits. (Or, more likely, they raise billions in venture capital, never make a profit, and stay alive because billionaires have nothing else to spend their money on while the rest of us eat dirt.)

          • I agree with you. But the technology is going to be developed and trained. Would you feel more comfortable if OpenAI or any other company were brought under government control -- this way the benefits of the technology can proportionally benefit creators and citizens? Or simply tell companies that they must pay for any and all copyrighted work? There would be no AI for companies that follow the rules. Others who are willing to steal to train their models will benefit and win. I guess what I am saying is tha
      • by allo ( 1728082 )

        Technology.

      • ^Exactly!^

        Ever see the Animatrix episode "The Second Renaissance"? What you described is exactly that.
        Once "AI" takes over your job flipping burgers at McDonald's, you'd better have something put away money-wise.
        Maybe they should get busy with working out the UBI bugs, 'cause if they keep making "AI" better and more capable, less and less people are going to be able to find work... maybe, for every person that "AI" makes unemployed, the UBI should come from the company that made that "AI".

    • So the sacred copyright is secondary to national security huh?

      I guess it wasn't so sacred after all...

  • Having lots of money and claiming you are important for the future of the universe doesn't give you the right to steal property from the people who own it.

    • It's copyright infringement. It's not theft. Different crimes here.

  • And while copyright holders have cash AI is worth trillions based on the possibility that it could replace most if not all white collar workers.

    At best this will hit the supreme Court where they will declare that it's fair use. The decades of precedence around storing the contents of copyrighted material won't matter.

    There is no way something is valuable is AI is going to get derailed by a little thing like the rights of the copyright holders. This is happening and we all need to get comfortable wit
  • by awwshit ( 6214476 ) on Friday August 08, 2025 @08:30PM (#65576488)

    Single moms that shared a few songs paid dearly. Watch tech bros that stole everything walk.

    If copyrights were reasonable we would be having a different conversation.

  • Those companies SHOULD be bankrupted, and the CEOs put in prison for a few years. They are thieves of the highest order, and of which the world has never seen before.

  • How many multi-billionaires are there in the AI/AI adjacent field? Maybe they could cough up some of those billions to pay the artists they stole from. If they can hand out bonuses of hundreds of thousands to almost a million, then they can certainly afford to give back to those that made it possible for them to do what they do.
  • These AI companies are throwing fortunes at employees working on their function. Start throwing that money at the people creating the body of knowledge.

  • I'd be a very happy person if all AI companies were ruined to the point of bankruptcy and their CEOs sent to prison for life.

  • by Mirnotoriety ( 10462951 ) on Friday August 08, 2025 @10:45PM (#65576710)
    What do you expect when your entire business model is built on other people unattributed work.
    • That's not even close to the entire business model. AI can get by just fine without Harry Potter or Taylor Swift's catalog. It would still have all that social media and codebase data that was obtained legitimately.
  • I hope the AI companies loose in court and we see an end to this generative AI crap.

  • So Anthropic wants no consequences for committing blatant copyright infringement, while everybody else faces prison time over this?

    No. They trained their AI by feeding it works they didn't obtain the rights to. Now there should be consequences. If this means Anthropic goes belly-up, so be it.

    If this succeeds, we can basically say goodbye to the AI industry. Whether this is a good thing or a bad thing remains to be seen.

    • If this succeeds, we can basically say goodbye to the AI industry. Whether this is a good thing or a bad thing remains to be seen.

      Well, we can say goodbye to this version of the AI industry.

      And that would actually be a good thing. The GenAI industry is basically a dead-end as far as artificial intelligence is concerned, because it's leading research time and money away from achieving General Artificial Intelligence. How can we know this? Because: in order to write this sentence, I didn't need to ingest the entirety of humanity's written word. I'v read a couple of thousand book so far in my life (if that); I've had a high school educat

  • Committing a crime too large to readily try was supposed to mean impunity; not a suit too large to readily defend against! I want to speak to the manager!
  • People went to prison for stealing copyrighted material. A class action suit would be them getting away easy since their leadership should go to jail.

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