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

The important parts:

> 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.

You skipped quotes about the other important side:

> 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.

> 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.

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.

These are two separate actions that Anthropic did:

* 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).

The judge said they can train however I believe the judge did not make any ruling regarding model outputs