Anthropic cut up millions of used books, and downloaded 7M pirated ones – judge

> Alsup ruled that Anthropic's use of copyrighted books to train its AI models was "exceedingly transformative" and qualified as fair use

> "All Anthropic did was replace the print copies it had purchased for its central library with more convenient space-saving and searchable digital copies for its central library — without adding new copies, creating new works, or redistributing existing copies"

It was always somewhat obvious that pirating a library would be copyright infringement. The interesting findings here are that scanning and digitizing a library for internal use is OK, and using it to train models is fair use.

> But Alsup drew a firm line when it came to piracy.

> "Anthropic had no entitlement to use pirated copies for its central library," Alsup wrote. "Creating a permanent, general-purpose library was not itself a fair use excusing Anthropic's piracy."

That is, he ruled that

- buying, physically cutting up, physically digitizing books, and using them for training is fair use

- pirating the books for their digital library is not fair use.

> - buying, physically cutting up, physically digitizing books, and using them for training is fair use

> - pirating the books for their digital library is not fair use.

That seems inconsistent with one another. If it's fair use, how is it piracy?

It also seems pragmatically trash. It doesn't do the authors any good for the AI company to buy one copy of their book (and a used one at that), but it does make it much harder for smaller companies to compete with megacorps for AI stuff, so it's basically the stupidest of the plausible outcomes.

* They downloaded a massive online library of pirated books that someone else was distributing illegally. This was not fair use.

* They then digitised a bunch of books that they physically owned copies of. This was fair use.

This part of the ruling is pretty much existing law. If you have a physical book (or own a digital copy of a book), you can largely do what you like with it within the confines of your own home, including digitising it. But you are not allowed to distribute those digital copies to others, nor are you allowed to download other people's digital copies that you don't own the rights to.

The interesting part of this ruling is that once Anthropic had a legal digital copy of the books, they could use it for training their AI models and then release the AI models. According to the judge, this counts as fair use (assuming the digital copies were legally sourced).

Can you point me to the US Supreme Court case where this is existing law?

It's pretty clear that if you have a physical copy of a book, you can lend it to someone. It also seems pretty reasonable that the person borrowing it could make fair use of it, e.g. if you borrow a book from the library to write a book review and then quote an excerpt from it. So the only thing that's left is, what if you do the same thing over the internet?

Shouldn't we be able to distinguish this from the case where someone is distributing multiple copies of a work without authorization and the recipients are each making and keeping permanent copies of it?