Anthropic's $1.5B Copyright Settlement Hits Roadblock as Judge Delays Approval

A $1.5 billion copyright settlement between Anthropic and authors has hit a roadblock after a judge delayed approval of the deal. The settlement, which covers over 480,000 works, has been contested by objectors who argue that the attorneys' fees are too high and the compensation for authors is too low.

According to an attorney for the authors, claims have been filed covering over 92% of the works included in the settlement. However, objectors maintain that the lawyers' pay should reflect the total number of claimants, not the total amount in the settlement fund.

One objector, Story, is urging the court to make "reasonable and fair adjustments" to lower attorney fees, which would increase compensation to authors. Story noted that a reduced attorney fee of $70 million would result in a nearly 25% increase in individual plaintiff awards, while still providing a generous payout to counsel.

Story believes that the attorneys could have negotiated a better deal for the authors but instead settled too quickly to maximize their own compensation. "Were the attorneys as skilled, gritty, and brilliant as they profess, and were the Settlement the 'home run' Counsel claims it to be, Plaintiffs would receive more than this pittance," Story said.

Another objector, Ruben Lee, agreed that the amount offered to authors is paltry and does not reflect the full value of the unauthorized use of their work. The objectors' concerns have seemingly persuaded the court to entertain their pleas, including warnings that the settlement may not survive an appeal if the terms aren't re-examined.

The objections came shortly before a group of 25 class members opting out of the settlement filed a new lawsuit, indicating that Anthropic is not done fighting these claims. The objectors argue that the court's approval of the settlement would be an aberration of civil justice and a slap in the face to authors who labored to publish their works.

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