Authors Raise Concerns Over Publisher and Agent Claims on Anthropic Settlement Payments

Authors expecting compensation from Anthropic's $1.5 billion copyright settlement have reported unexpected claims on their payments by publishers and literary agents. The settlement followed a class action lawsuit concerning the use of copyrighted material in AI training, which a judge ruled permissible under fair use, but ruled against unauthorized copying. Final approval of the settlement was granted in July, enabling payments to proceed. Under the agreement, authors of nearly 500,000 titles are entitled to $3,000 per pirated work. For in-print books held by traditional publishers, payments are split evenly between author and publisher. If a book is self-published or rights have reverted due to the book being out-of-print, the author should receive the full amount. However, authors have taken to social media and blogs to report that publishers are claiming larger shares than entitled. For instance, author April Henry highlighted that HarperCollins claimed a reverted title and was incorrectly listed as her employer. The blog Writers Beware noted two main issues: publishers claiming payments for works where rights have reverted, and publishers seeking full payments instead of the agreed 50% share. Victoria Strauss of Writers Beware suggested these issues may stem from poor recordkeeping rather than intentional misconduct. Some publishers have acknowledged errors and requested corrections from Anthropic. Mary Rasenberger, CEO of the Authors Guild, echoed this view, attributing the disputes to administrative confusion rather than deliberate attempts to withhold author payments. Despite these reassurances, Strauss pointed out the volume and repetition of complaints indicate systemic problems rather than isolated glitches. Additionally, some literary agencies have also made claims on payments, which has surprised many since agents do not hold rights to the works. Author Courtney Milan strongly criticized agents attempting to claim portions of the settlement, emphasizing that such actions are inappropriate. Both Milan and the Authors Guild have provided guidance for authors to dispute payment allocations, noting that authors must demonstrate rights reversion occurred before August 10, 2022, to claim full payment. This situation highlights the complexities involved in distributing settlement funds in large-scale copyright cases, especially when rights ownership and record accuracy are unclear. Ensuring fair compensation for authors remains a critical concern as the settlement process continues.