Authors Challenge Publishers and Agents Over Anthropic Copyright Settlement Claims

Authors expecting payments from Anthropic's $1.5 billion copyright settlement have encountered unexpected claims from publishers and literary agents on their shares. The settlement followed a class action lawsuit concerning the legality of training AI models on copyrighted material, which was ultimately allowed under fair use, while unauthorized copying was not. Nearly 500,000 titles are involved, with authors entitled to $3,000 per pirated work. Payments are split evenly between authors and publishers if the book remains in print, but authors receive full payment if the rights have reverted or the book is self-published. Several authors have publicly expressed frustration after receiving notifications that publishers claimed payments on works whose rights had reverted years ago. For example, author April Henry highlighted a case where a major publisher claimed a book that reverted rights over 17 years ago and was incorrectly listed as her employer. Victoria Strauss of the Writers Beware blog noted two main issues: publishers claiming payments for works they no longer hold rights to, and publishers seeking full payments instead of the agreed 50%. Strauss suggested these problems may stem from poor recordkeeping rather than intentional wrongdoing, a view echoed by Authors Guild CEO Mary Rasenberger, who described the situation as a result of administrative confusion rather than deliberate attempts to shortchange authors. Despite reassurances, Strauss pointed out the volume and repetition of complaints indicate systemic issues rather than isolated errors. Additionally, some literary agencies have made claims on payments, which has surprised many since agents typically do not hold rights to the books they represent. Author Courtney Milan criticized agents attempting to claim portions of the settlement, emphasizing that such claims are inappropriate. Both Milan and the Authors Guild have provided guidance for authors to dispute payment allocations, particularly concerning the timing of rights reversion, which must have occurred before August 10, 2022, to qualify for full payment. This dispute highlights ongoing challenges in managing large-scale settlements involving complex rights and multiple stakeholders, underscoring the importance of clear recordkeeping and transparent processes to ensure fair compensation for authors.