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Anthropic Starts Paying Out $1.5B Copyright Settlement, But Authors and Publishers Are at Odds

Anthropic has started cutting checks for its massive $1.5 billion copyright settlement, but the money isn't flowing as smoothly as hoped. The payout, which compensates authors of nearly 500,000 pirated works used to train the company's AI models, has sparked a new dispute: some publishers are grabbing more than their fair share, and authors are pushing back.

The settlement stems from a class-action lawsuit filed last year. A court ruled that Anthropic's use of copyrighted materials for AI training was generally protected under the "fair use" doctrine—but with a catch: pirated materials didn't qualify for that protection. As a result, the company agreed to pay $3,000 per pirated work, totaling $1.5 billion. The plan was approved in July, and payments have since begun.

Publishers Claim More Than Their Share

According to the settlement agreement, if a book is still published by a traditional publisher, the compensation is split 50-50 between author and publisher. But if the book is self-published, or the publisher has reverted the rights to the author, the full $3,000 should go to the author.

That's where the trouble starts. Several authors have taken to social media to accuse publishers of overstepping. Suspense novelist April Henry publicly called out HarperCollins, claiming the publisher filed for compensation on a book whose rights she had regained at least 17 years ago. To add insult to injury, she discovered that HarperCollins had listed itself as her "employer" on the same day—despite never having worked for them.

Record-Keeping Chaos or Deliberate Greed?

Victoria Strauss, who runs the well-known writers' advocacy blog Writers Beware, says the complaints she's seeing fall into two main buckets: publishers claiming compensation for works they no longer hold the rights to, and publishers quietly applying for 100% of the compensation when they're only entitled to half.

But Strauss is quick to point out that these issues likely stem from "poor copyright record management and complex settlement procedures," not necessarily from publishers trying to pull a fast one. Some publishers have already acknowledged their mistakes and are asking Anthropic to correct the claims.

What's Next?

As the payout process continues, authors are left wondering whether they'll get their due. The settlement was meant to right a wrong, but the messy implementation is creating new frustrations. For now, the spotlight is on publishers to clean up their records—and on Anthropic to ensure the funds reach the right hands.

Key Points

  • Settlement Amount: $1.5 billion, with $3,000 per pirated work.
  • Eligibility: Authors of nearly 500,000 pirated works used to train AI models.
  • Dispute: Publishers claiming more than their share, including for works they no longer hold rights to.
  • Reaction: Authors like April Henry publicly questioning publishers like HarperCollins.
  • Expert View: Victoria Strauss attributes issues to record-keeping and procedural complexity, not deliberate fraud.