Authors resist publishers and agents’ claims regarding Anthropic settlement outcome.

Authors React to Anthropic’s $1.5 Billion Settlement

In a surprising turn of events, several authors anticipating their share of Anthropic’s $1.5 billion copyright settlement received unexpected emails this week. These messages informed them that claims were being made on their payments by other parties.

Background on the Anthropic Settlement

Last year, Anthropic reached a settlement in a copyright class action lawsuit, following a judicial decision that deemed training AI models using copyrighted content permissible under the fair use doctrine. However, outright piracy of that material remains illegal. The settlement received final approval in July, paving the way for the distribution of payments to authors.

Payment Structure for Authors

The settlement stipulates that authors of nearly 500,000 titles will receive $3,000 for each work that was pirated. In instances where the book is still in print with a traditional publisher, the payment will be divided equally between the author and the publisher. If the book was self-published or the publisher has reverted rights by allowing the book to go out of print, the author will retain the entire payment.

Concerns Over Publisher Claims

Many authors have taken to social media to voice their concerns that publishers appear to be claiming more than their fair share of the settlement payments. For instance, mystery and thriller author April Henry questioned HarperCollins’ motives after she received a notice that they had claimed a book that had reverted to her more than 17 years ago, coinciding with a credit alert indicating they were listed as her employer—something she vehemently contested.

In a blog post on Writers Beware, Victoria Strauss compiled feedback from authors, highlighting two primary issues. The first involves publishers seeking payment for works they no longer have rights to due to reversion. The second relates to publishers requesting full payments when they should only be entitled to half.

The Response to Allegations

Strauss expressed reluctance to label publishers’ actions as malicious, attributing them instead to poor recordkeeping. Some publishers have acknowledged these mistakes and requested that Anthropic rectify them.

Similarly, Mary Rasenberger, CEO of the Authors Guild, shared her perspective with The New York Times, stating that she does not view this phenomenon as a deliberate attempt by publishers to undermine authors. Rather, she attributes it to the ramifications of disorganized records and a convoluted settlement process.

However, Strauss noted the unusually high volume of reports indicates a widespread issue rather than mere routine errors. She referred to it as “a peek through a small crack in a massive wall,” suggesting that more complex systemic problems may be at play.

Literary Agents in the Mix

The issue isn’t limited to publishers. Strauss reported receiving complaints about several literary agencies also attempting to make claims on the settlement. This has raised eyebrows within the literary community, as agents traditionally do not hold rights to the books they represent.

Author Courtney Milan, who writes under the pen name Heidi Bond, voiced her frustration on Bluesky, stating, “Apparently some agents are trying to claim percentages on the Anthropic settlement, and I do not REMOTELY think they should do this, what the f*k, stop that sht!”

Navigating the Claims Process

Milan, along with the Authors Guild, provided insights into how authors can challenge the distribution of their payments. An especially challenging aspect is determining the timeline of rights reversion. For an author to make a legitimate claim for the full payment on a book, the rights must have reverted prior to August 10, 2022, which is designated as the “download date” in the settlement.

Conclusion

The unfolding issues surrounding the Anthropic settlement illustrate the complexities and challenges that authors face regarding rights and payments. As frustrations mount over claims by publishers and agents, it’s clear that better recordkeeping and clearer communication are imperative to ensuring that authors receive their rightful compensation. This situation underscores the importance of vigilance and awareness for authors navigating the intricacies of copyright law in the evolving landscape of publishing.

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Emmanuel Kesse

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