Anthropic has reached a preliminary settlement in a class action lawsuit brought by a group of prominent authors, marking a major turn in of the most significant ongoing AI copyright lawsuits in history. The move will allow Anthropic to avoid what could have been a financially devastating outcome in court.
The settlement agreement is expected to be finalized on September 3, with more details to follow, according to a legal filing published Tuesday. Anthropic declined to comment. “This historic settlement will benefit all class members. We look forward to announcing details of the settlement in the coming weeks,” Justin Nelson, a lawyer representing the plaintiffs, said in a statement to WIRED.
In 2024, three book writers, Andrea Bartz, Charles Graeber, and Kirk Wallace Johnson, sued Anthropic, alleging that the startup illegally used their work to train its artificial intelligence models. In June, California district court judge William Alsup issued a summary judgment in Bartz v. Anthropic that largely sided with Anthropic, finding that the company’s usage of the books was “fair use” and thus legal.
But the judge ruled that the manner in which Anthropic had acquired some of the works, by downloading them through so-called shadow libraries, including a notorious site called LibGen, constituted piracy. Alsup ruled that the book authors could still take Anthropic to trial in a class action for pirating their works; the legal showdown was slated to begin in December.
Statutory damages for this kind of piracy start at $750 per infringed work, according to US copyright law. Because the library of books amassed by Anthropic was thought to contain approximately 7 million works, the AI company was potentially facing court-imposed penalties amounting to billions, possibly more than $1 trillion dollars.
“It’s a stunning turn of events, given how Anthropic was fighting tooth and nail in two courts in this case. And the company recently hired a new trial team,” says Edward Lee, a law professor at Santa Clara University who closely follows AI copyright litigation. “But they had few defenses at trial, given how Judge Alsup ruled. So Anthropic was starting at the risk of statutory damages in ‘doomsday’ amounts.”
Most authors who may have been part of the class action were just starting to receive notice that they qualified to participate. The Authors Guild, a trade group representing professional writers, sent out a notice alerting authors that they might be eligible earlier this month, and lawyers for the plaintiffs were scheduled to submit a “list of affected works” to the court on September 1. This means that many of these writers were not privy to the negotiations that took place.
“The big question is whether there is a significant revolt from within the author class after the settlement terms are unveiled,” says James Grimmelmann, a professor of digital and internet law at Cornell University. “That will be a very important barometer of where copyright owner sentiment stands.”
Anthropic is still facing a number of other copyright-related legal challenges. One of the most high-profile disputes involves a group of major record labels, including Universal Music Group, which allege that the company illegally trained its AI programs on copyrighted lyrics. The plaintiffs recently filed to amend their case to allege that Anthropic had used the peer-to-peer file sharing service BitTorrent to download songs illegally.
Settlements don’t set legal precedent, but the details of this case will likely be watched closely as dozens of other high-profile AI copyright cases continue to wind through the courts.
Update: 8/26/25, 11:40 pm EST: This story has been updated to include comment from an attorney representing the plaintiffs.
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![FCC Chairman Wants to Repeal a Key Rule That Would Fundamentally Change Broadcast News
Federal Communications Commission Chairman Brendan Carr wants to repeal a rule that has prevented a select handful of broadcasters from taking full control of the media landscape. Back in 2004, Congress instructed the FCC to enact a national ownership cap that would bar any one broadcast station owner from reaching more than 39% of American households. For more than 20 years, the rule has kept mega mergers in the TV broadcasting industry from gobbling up the entire media ecosystem. Now, Carr is proposing to repeal that national ownership cap rule, which, if successful, would mean broadcast TV giants will pretty much have a green light for mergers, even if it meant that one company would gain access to most of the media landscape. Carr expressed his intentions in an op-ed published by the far-right organization Breitbart. In the op-ed, he claimed that the cap was once helpful in protecting local news stations, but now it was becoming an obstacle as they compete with national news, large streamers, and social media giants.
Instead of a blanket rule, Carr wants to create a new “case-by-case approach.” “Previously, the cap operated as a blanket prohibition on any and all deals that would combine stations in excess of the 39 percent limit—regardless of whether it was a good deal or a bad one for the country,” Carr wrote in the op-ed. “Our new proposal would allow the FCC to approve deals that exceed the 39 percent cap, but only if doing so would promote the public interest.”
Major broadcasters have been lobbying for a change to the rule for quite some time now. One such mega TV broadcasting company that lobbied for the rule change is Nexstar. Earlier this year, the FCC granted Nexstar a waiver for the 39% national ownership cap rule and approved its acquisition of rival Tegna. The merger is still currently facing court challenges over antitrust claims, but if it is finalized, then Nexstar is estimated to expand its reach to at least 60% of American households. Sinclair, another Trump-allied major broadcaster that was behind a particularly infamous PR debacle during Trump’s first administration, is also eyeing a merger and commended the proposed rule change as “common sense.” Both companies also famously refused to air Jimmy Kimmel’s show on their channels late last year after the late-night host’s comments about Charlie Kirk drew ire from the Trump administration.
[embed]https://www.youtube.com/watch?v=_fHfgU8oMSo[/embed] The FCC will vote on eliminating the rule on August 6th. There are three commissioners, two Republicans and one Democrat. The lone Democratic FCC Commissioner, Anna Gomez, took to X to voice her staunch opposition. “The FCC just announced it will move forward with its unlawful effort to hand control of the public airwaves to billionaire buddies of this administration,” Gomez wrote. “This will destroy local newsrooms, silence community reporting, and drive-up costs for American families.” Even if the action passes the FCC vote, it’s likely to receive pushback from both sides of the aisle in Congress. “Trump’s FCC Chair is trying to illegally rewrite the rules to make it easier for billionaires to line their own pockets while jacking up costs and controlling what Americans watch,” Sen. Elizabeth Warren said in a statement. “After rubber-stamping the Nexstar-Tegna megamerger, this looks like the Trump administration’s latest attempt to roll out the red carpet for more antitrust disasters.”
Critics believe that because the rule was created following Congress’s action, it is up to Congress to determine if it should be retired. But Carr insists that the FCC has the authority to modify or repeal the rule. #FCC #Chairman #Repeal #Key #Rule #Fundamentally #Change #Broadcast #NewsBrendan carr,broadcast television,FCC FCC Chairman Wants to Repeal a Key Rule That Would Fundamentally Change Broadcast News
Federal Communications Commission Chairman Brendan Carr wants to repeal a rule that has prevented a select handful of broadcasters from taking full control of the media landscape. Back in 2004, Congress instructed the FCC to enact a national ownership cap that would bar any one broadcast station owner from reaching more than 39% of American households. For more than 20 years, the rule has kept mega mergers in the TV broadcasting industry from gobbling up the entire media ecosystem. Now, Carr is proposing to repeal that national ownership cap rule, which, if successful, would mean broadcast TV giants will pretty much have a green light for mergers, even if it meant that one company would gain access to most of the media landscape. Carr expressed his intentions in an op-ed published by the far-right organization Breitbart. In the op-ed, he claimed that the cap was once helpful in protecting local news stations, but now it was becoming an obstacle as they compete with national news, large streamers, and social media giants.
Instead of a blanket rule, Carr wants to create a new “case-by-case approach.” “Previously, the cap operated as a blanket prohibition on any and all deals that would combine stations in excess of the 39 percent limit—regardless of whether it was a good deal or a bad one for the country,” Carr wrote in the op-ed. “Our new proposal would allow the FCC to approve deals that exceed the 39 percent cap, but only if doing so would promote the public interest.”
Major broadcasters have been lobbying for a change to the rule for quite some time now. One such mega TV broadcasting company that lobbied for the rule change is Nexstar. Earlier this year, the FCC granted Nexstar a waiver for the 39% national ownership cap rule and approved its acquisition of rival Tegna. The merger is still currently facing court challenges over antitrust claims, but if it is finalized, then Nexstar is estimated to expand its reach to at least 60% of American households. Sinclair, another Trump-allied major broadcaster that was behind a particularly infamous PR debacle during Trump’s first administration, is also eyeing a merger and commended the proposed rule change as “common sense.” Both companies also famously refused to air Jimmy Kimmel’s show on their channels late last year after the late-night host’s comments about Charlie Kirk drew ire from the Trump administration.
[embed]https://www.youtube.com/watch?v=_fHfgU8oMSo[/embed] The FCC will vote on eliminating the rule on August 6th. There are three commissioners, two Republicans and one Democrat. The lone Democratic FCC Commissioner, Anna Gomez, took to X to voice her staunch opposition. “The FCC just announced it will move forward with its unlawful effort to hand control of the public airwaves to billionaire buddies of this administration,” Gomez wrote. “This will destroy local newsrooms, silence community reporting, and drive-up costs for American families.” Even if the action passes the FCC vote, it’s likely to receive pushback from both sides of the aisle in Congress. “Trump’s FCC Chair is trying to illegally rewrite the rules to make it easier for billionaires to line their own pockets while jacking up costs and controlling what Americans watch,” Sen. Elizabeth Warren said in a statement. “After rubber-stamping the Nexstar-Tegna megamerger, this looks like the Trump administration’s latest attempt to roll out the red carpet for more antitrust disasters.”
Critics believe that because the rule was created following Congress’s action, it is up to Congress to determine if it should be retired. But Carr insists that the FCC has the authority to modify or repeal the rule. #FCC #Chairman #Repeal #Key #Rule #Fundamentally #Change #Broadcast #NewsBrendan carr,broadcast television,FCC](https://gizmodo.com/app/uploads/2026/07/GettyImages-2262359639-1280x888.jpg)



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