this post was submitted on 09 Aug 2025
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Copyright class actions could financially ruin AI industry, trade groups say.

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 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.

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[–] N0t_5ure@lemmy.world 172 points 4 days ago (58 children)

"If we have to pay for the intellectual property that we steal and repackage, our whole business model will be destroyed!"

[–] errer@lemmy.world 81 points 4 days ago (2 children)

One thing this whole AI training debacle has done for me: made me completely guilt-free in pirating things. Copyright law has been bullshit since Disney stuck their finger in it and if megacorps can get away with massively violating it, I’m not going to give a shit about violating it myself.

[–] bss03@infosec.pub 27 points 4 days ago

For me it was Disney floating the idea of asking the wrongful death suit be dismissed because of the liability waiver in a Disney+ free trial.

I have the $$$, but I don't agree with the terms for any of the streaming services, so I'll just sail the seven seas and toss a doubloon (coin) to independent creators (my witchers) when I can.

[–] makyo@lemmy.world 11 points 4 days ago

I'm pretty much there too, the whole industry consolidates on the new things and charges us as they make it worse. And there can be some arguments to be made over the benefits of AI but we all know that it will not be immune to the entshitification that has already ruined all the things before it

[–] aramis87@fedia.io 72 points 4 days ago

If I downloaded ten movies to watch with my nephew in the cancer ward, they'd sue me into oblivion. Download tens of millions of books and claiming your business model depends on doesn't make it okay. And sharing movies with my sick nephew would cause less harm to society and to the environment than AI does.

[–] ThePantser@sh.itjust.works 22 points 4 days ago* (last edited 4 days ago) (2 children)

I started my own streaming service with pirated content. My business model depends on that data on my server.

Same thing but for some reason it's different. They hate when we use their laws against them. Let's root they rule against this class action so we can all benefit from copyright being thrown out. Or alternatively it kills AI companies, either way is a win.

[–] skuzz@discuss.tchncs.de 14 points 4 days ago (1 children)

We'll get a good taste of just how corrupt the US legal system now is, instead. Copyright law will still apply to we plebs, the Executive branch will overstep its powers, requiring some mafioso payoff from AI companies to keep doing what they do. The case will go away, mysteriously.

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[–] thedruid@lemmy.world 58 points 4 days ago (1 children)

Hmm. I'm finding it hard to come up with more clever response to them than.

" good "

[–] SeductiveTortoise@piefed.social 13 points 4 days ago

Not clever, but shared

[–] Ensign_Crab@lemmy.world 54 points 4 days ago

They have the entire public domain at their disposal.

If giant megacorporations didn't want their chatbots talking like the 1920s, they shouldn't have spent the past century robbing society of a robust public domain.

[–] xxce2AAb@feddit.dk 45 points 4 days ago

You had me at "financially ruin AI industry".

[–] floofloof@lemmy.ca 36 points 4 days ago

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.

Maybe they should have thought of that before they ripped off a century's worth of published literature?

[–] frongt@lemmy.zip 29 points 4 days ago (1 children)

Are they expecting me to feel bad for them? Don't do the crime if you can't do the time.

[–] aramis87@fedia.io 17 points 4 days ago

If your business model depends on not paying millions of people for the product of their labors, destroys the environment, and the product hallucinates and makes people psychotic, then your business deserves to die a quick and painful death.

[–] gravitas_deficiency@sh.itjust.works 29 points 4 days ago (1 children)

I’m no fan of the copyright fuckery so commonly employed by (amongst others) the RIAA and MPAA, but this is honestly the best use of copyright law I can think of in recent memory.

[–] Azal@pawb.social 6 points 3 days ago

It's the neat part with giant monsters... sometimes they trod on each others toes and they stop eating us to tear each other apart and we get to sit back and watch.

[–] Viking_Hippie@lemmy.dbzer0.com 25 points 4 days ago* (last edited 4 days ago)

AI industry, fucking around: Woo! This is awesome! No consequences ever! Just endless profits!

AII, finding out: this fucking sucks! So unfair!

[–] caboose2006@lemmy.world 24 points 3 days ago

"copyright class action could ruin AI industry"

Oh nooooooo....... How do I sign on to this lawsuit?

[–] TankovayaDiviziya@lemmy.world 23 points 4 days ago (1 children)

I would not hold my breath. There is a high likelihood that the courts will side AI companies because the American courts are compromised.

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[–] givesomefucks@lemmy.world 19 points 4 days ago

Corps fight class actions, because individuals can't sue on their own...

Copywrite holders have money and legal teams on call. Even if they stop this, they'll just have a shit ton of lawsuits instead

[–] FauxLiving@lemmy.world 15 points 3 days ago* (last edited 3 days ago)

I've read this entire thread and could not find a single person who seems to have actually read anything about this case.

The article is a huge pile of bullshit.

Here is what happened: An industry group filed an amicus brief during the appeal of a ruling where the judge certified the 3 plaintiffs as a class. Boring legal minutae in a case that doesn't matter, see below.

The author is either incompetent at understanding legal filings or deliberately being misleading to write clickbait trash. Human slop, if you prefer.

This is not noteworthy, at all. The issue being argued about is if the 3 people can represent the class of "everyone Anthropic downloaded books from". This is a non-story, unless you're a legal nerd and care about exactly how courts define classes and the legal steps required for the analysis.

But, more importantly for the frothing anti-AI masses:

In the order certifying the defendants as a class, the judge dismissed the plaintiff's claims of copyright violation related to the training of LLMs. The judge said that training LLMs was transformative and thus fair use under copyright law and since this is so obvious that that argument could be summarily dismissed.

Don't believe me, go click on the links in the article to the summary judgement yourself. The information is not hard to find if you read farther than the headline.

The only remaining issue in the lawsuit is if Anthropic is civilly liable for downloading the books on bittorrent.

This case isn't even about AI anymore, it's the same kind of lawsuit that we've seen since Napster was popular. Uploading copyrighted material, like when you use BitTorrent, is a copyright violation and you could be sued.

That's all this case is now, the argument that everyone is fighting over in the comments: "Is training an LLM on copyrighted material a violation of copyright?" is already answered by the judge:

No, using copyrighted material to train a LLM is so obviously fair use that the argument was summarily dismissed.

Here's the relevant quote from the judge, in summary judgement:

To summarize the analysis that now follows, the use of the books at issue to train Claude and its precursors was exceedingly transformative and was a fair use under Section 107 of the Copyright Act. The digitization of the books purchased in print form by Anthropic was also a fair use, but not for the same reason as applies to the training copies. Instead, it was a fair use because all Anthropic did was replace the print copies it had purchased for its central library with more convenient, space-saving, and searchable digital copies without adding new copies, creating new works, or redistributing existing copies. However, Anthropic had no entitlement to use pirated copies for its central library, and creating a permanent, general-purpose library was not itself a fair use excusing Anthropic’s piracy.

[–] kn0wmad1c@programming.dev 14 points 4 days ago (1 children)

"Please let us steal" - AI Industry

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[–] SMillerNL@lemmy.world 13 points 4 days ago

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.

The judge didn’t apply critical thinking but instead just did whatever was the most likely decision based on all the information it was fed in its training? That must be very inconvenient and it would be a shame if we had companies advertising exactly that as a world changing technology.

[–] CharlesDarwin@lemmy.world 13 points 3 days ago (2 children)

Yeah, who the fuck gave all these rich assholes the right to make money on others' work?

I'd like to know how these assholes get away with even training on GPL licensed code.

Making money on other people's work is literally capitalism.

Capitalists take the surplus of workers, because they own the means of production.

[–] SugarCatDestroyer@lemmy.world 3 points 3 days ago

Well, they've always profited from other people's labor, and now they think that our souls belong to them too. They've gotten completely brazen!

It's like they took only part of the wheat from the peasants before, and then decided to take it all by force and cunning, down to the last grain lol. :3

[–] N0t_Legal_Advice@lemmy.today 11 points 3 days ago

Oh no...I'm super bummed. 🤭

[–] Fedizen@lemmy.world 9 points 4 days ago

Wish him the best

[–] ninjabard@lemmy.world 7 points 4 days ago* (last edited 3 days ago) (4 children)
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[–] ephrin@sh.itjust.works 5 points 4 days ago
[–] cheese_greater@lemmy.world 5 points 3 days ago
[–] mintiefresh@piefed.social 5 points 4 days ago
[–] MyOpinion@lemmy.today 3 points 4 days ago

AI is piracy.

[–] ByteJunk@lemmy.world 3 points 4 days ago

Thoughts and prayers.

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