• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
AILegal

Anthropic’s landmark copyright ruling is a victory for the AI industry—but the company is still on the hook for piracy claims

By
Matt O'Brien
Matt O'Brien
and
The Associated Press
The Associated Press
Down Arrow Button Icon
By
Matt O'Brien
Matt O'Brien
and
The Associated Press
The Associated Press
Down Arrow Button Icon
June 24, 2025, 4:23 PM ET
A federal judge has ruled that Anthropic didn’t break the law by training its chatbot Claude on millions of copyrighted books.
A federal judge has ruled that Anthropic didn’t break the law by training its chatbot Claude on millions of copyrighted books.Chesnot/Getty Images

In a test case for the artificial intelligence industry, a federal judge has ruled that AI company Anthropic didn’t break the law by training its chatbot Claude on millions of copyrighted books.

Recommended Video

But the company is still on the hook and must now go to trial over how it acquired those books by downloading them from online “shadow libraries” of pirated copies.

U.S. District Judge William Alsup of San Francisco said in a ruling filed late Monday that the AI system’s distilling from thousands of written works to be able to produce its own passages of text qualified as “fair use” under U.S. copyright law because it was “quintessentially transformative.”

“Like any reader aspiring to be a writer, Anthropic’s (AI large language models) trained upon works not to race ahead and replicate or supplant them — but to turn a hard corner and create something different,” Alsup wrote.

But while dismissing a key claim made by the group of authors who sued the company for copyright infringement last year, Alsup also said Anthropic must still go to trial in December over its alleged theft of their works.

“Anthropic had no entitlement to use pirated copies for its central library,” Alsup wrote.

A trio of writers — Andrea Bartz, Charles Graeber and Kirk Wallace Johnson — alleged in their lawsuit last summer that Anthropic’s practices amounted to “large-scale theft,” and that the company “seeks to profit from strip-mining the human expression and ingenuity behind each one of those works.”

As the case proceeded over the past year in San Francisco’s federal court, documents disclosed in court showed Anthropic’s internal concerns about the legality of their use of online repositories of pirated works. So the company later shifted its approach and attempted to purchase copies of digitized books.

“That Anthropic later bought a copy of a book it earlier stole off the internet will not absolve it of liability for the theft but it may affect the extent of statutory damages,” Alsup wrote.

The ruling could set a precedent for similar lawsuits that have piled up against Anthropic competitor OpenAI, maker of ChatGPT, as well as against Meta Platforms, the parent company of Facebook and Instagram.

Anthropic — founded by ex-OpenAI leaders in 2021 — has marketed itself as the more responsible and safety-focused developer of generative AI models that can compose emails, summarize documents and interact with people in a natural way.

But the lawsuit filed last year alleged that Anthropic’s actions “have made a mockery of its lofty goals” by tapping into repositories of pirated writings to build its AI product.

Anthropic said Tuesday it was pleased that the judge recognized that AI training was transformative and consistent with “copyright’s purpose in enabling creativity and fostering scientific progress.” Its statement didn’t address the piracy claims.

The authors’ attorneys declined comment.

Join us at the Fortune Workplace Innovation Summit May 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.
About the Authors
By Matt O'Brien
See full bioRight Arrow Button Icon
By The Associated Press
See full bioRight Arrow Button Icon

Latest in AI

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Most Popular

placeholder alt text
North America
'I meant what I said in Davos': Carney says he really is planning a Canada split with the U.S. along with 12 new trade deals
By Rob Gillies and The Associated PressJanuary 28, 2026
19 hours ago
placeholder alt text
C-Suite
Fortune 500 CEOs are no longer giving employees an A for effort. Now they want proof of impact
By Claire ZillmanJanuary 28, 2026
1 day ago
placeholder alt text
Real Estate
Ryan Serhant thinks the American Dream was just a 'slogan created by banks,' but it was really about FDR, the Great Depression, and an economic crisis
By Sydney Lake and Nick LichtenbergJanuary 26, 2026
3 days ago
placeholder alt text
Personal Finance
Current price of silver as of Tuesday, January 27, 2026
By Joseph HostetlerJanuary 27, 2026
2 days ago
placeholder alt text
Commentary
Yes, you're getting a bigger tax refund. Your kids won't thank you for the $3 trillion it's adding to the deficit
By Daniel BunnJanuary 26, 2026
3 days ago
placeholder alt text
Success
Every U.S. Olympian is going home with $200,000, whether they medal or not, thanks to a billionaire's $100 million gift
By Jacqueline MunisJanuary 28, 2026
13 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.


Latest in AI

MagazineSamsung
How Samsung’s first-ever chief design officer is reinventing the electronics giant for the AI age
By Nicholas GordonJanuary 28, 2026
11 hours ago
Mark Zuckerberg, chief executive officer of Meta Platforms Inc
AIMeta
Meta beats on Q4 revenue as Mark Zuckerberg predicts a ‘major AI acceleration’ in 2026—with up to $135 billion in capex spending to match
By Sharon GoldmanJanuary 28, 2026
12 hours ago
ServiceNow CEO Bill McDermott
InvestingServiceNow
ServiceNow stock falls despite earnings beat as CEO Bill McDermott tries to get investors to stop thinking of it as a SaaS company
By Jeremy KahnJanuary 28, 2026
13 hours ago
NewslettersCIO Intelligence
How CIOs and CHROs are working together to reimagine work as AI tools proliferate
By John KellJanuary 28, 2026
16 hours ago
Sam Altman stands.
AIOpenAI
Sam Altman reportedly says ICE ‘is going too far’ while praising Trump as CEOs toe the line with Minneapolis shootings response
By Jacqueline MunisJanuary 28, 2026
16 hours ago
hanrahan
CommentarySocial Media
How social media upended the 75-year-old playbook of big CPG
By Oisín HanrahanJanuary 28, 2026
20 hours ago