https://storage.courtlistener.com/recap/gov.uscourts.cand.43...
The big deal for publishers and authors is the payout per eligible title is $3k. For a traditional publishing contract involving one author, the amount will be split down the middle.
The other thing which caught my eye is the judge slashed the class counsel's fee by half, from 12.5% ($187.5m) to 6.8% ($101m). The class counsel's unreimbursed litigation expenses were $2.6m.
The three class representatives get just $15k each.
Cover-your-ass strategy, and nothing more. Who, besides the ones at fault, are ever happy with these mean-nothing fines?
The justice system really needs an overhaul with how it tackles "justice" between the wealthy, the connected, the corporations, and the rest. Though I am unsure what that would look like. Minimum net wealth per category of infraction across the board?
Edit: grammar
They agreed on the amount last year. The judge approved it now.
The lawsuit was for the way the books were acquired. They already ruled that it's not infringement to use the books.
The award was $3,000 per book, which is about 100X higher than it would have cost to buy the books.
It's never going to appease the people who demand companies be sued into collapse, but given that both parties came to an agreement and the damages are 100X higher than what a book costs, it looks reasonable to me.
If you are selling more than 100 books you are clearly losing out
How many of the authors would license their book for endless creation of derivative works for that amount?
Thats more than it costs to just shred the spine and scan the book in. Which is probably 15 - 20 bucks a piece.
They will be shredding the book not paying the fine.
It was started by a group of authors, not publishers.
To create a moat around wealth generation. After all, that is the main purpose of all legal systems---to keep the wealthy wealthy and the poor poor. In this case, the settlement is chump change for Anthropic, but ensures that no upstart will be able to compete with them since they will get reamed on copyright charges. It's no different from Google Image search. They can make a product out of republishing others' images. You cannot do it.
> The justice system really needs an overhaul with how it tackles "justice" between the wealthy, the connected, the corporations, and the rest. Though I am unsure what that would look like. Minimum net wealth per category of infraction across the board?
% of annual turnover seems like decent strategy. Caps the amount company can sue mere mortal for copyright infringement while at billion dollar company scale can wipe quite a bit
But main problem is enforcement and lobbying, not the size of the fine
> Anthropic spent many millions of dollars to purchase millions of print books, often in used condition. Then, its service providers stripped the books from their bindings, cut their pages to size, and scanned the books into digital form — discarding the paper originals. Each print book resulted in a PDF copy containing images of the scanned pages with machine-readable text (including front and back cover scans for softcover books
As such, if you pirated a book and had to pay $3000 for that one instance, I don't think you'd like it if I said you should have paid $30K or $300K instead. If anything, this is analogous to the ridiculous fines people had to pay when pirating music.
(Not that I'm complaining...)
If you pirated a book for personal use the amount of liability wouldn't match a company whose profit could be attributed to pirating the same book. In US copyright law, a copyright infringer could be liable for "any profits of the infringer that are attributable to the infringement" [1] (if the copyright owner elects to recover actual damages and profits instead of statutory damages).
[1] 17 U.S.C. § 504(b), https://www.law.cornell.edu/uscode/text/17/504
> If there is a current publisher(s) (which still possesses an exclusive license), the author(s) will split the $3000 with the publisher. Any co-authors will share the author portion and, if there are multiple publishers (e.g., different publishers have exclusive rights to different formats), they will share the publisher portion. Assume that the co-authors and co-publishers will share the portion equally unless their contracts provide otherwise. The standard default split between publishers and authors of noneducational texts is 50/50, as described below. Authors who are the sole rightsholder in a work—such as self-published authors and authors whose rights have reverted or where the contracts have otherwise terminated—will receive the full award amount.
It is split between the publisher and the author, also publishers will have a large catalog of books they will submit, an author typically will only have a few -- the payout will be going to the lawyers and mostly to publishers.
Authors cant simply license away fair use. If it could be dismissed so easily the right wouldn't exist.
But if you don't want to ban them, telling them to buy one book of each, likely second hand, is complete pettiness that resulted in destructive scanning of millions of books, many of which were already practically available in digital form.
Put another way, their revenues wouldn't drop much if they simply hadn't trained on those 99%.
Given the entire global economy is currently bullish on the potential profitability of AI, I dare say they got off incredibly lightly settling for just $3k per book.