I made a bet with myself (nowhere near any online betting site!) on publishers' overreaching in the Anthropic settlement. I predicted that a major publisher would make a public statement — or at least a general statement within the claims process — attempting to intimidate authors into relinquishing authors' rightful shares of settlement proceeds before the extended "due date" for updating claims.
I lost. It was a couple days after that. This arrived, through the settlement administrator, on 05 November (for these authors, the "30 day extension" was through 03 November):
It is our understanding that the relevant contract between us provides that settlement proceeds should be shared, so that we (the publisher) receive 50%. Because you selected Sole Ownership, your claim currently reflects a claim for 100% of the payment. We understand that some authors, in claiming 100%, did so because they mistakenly believed they were selecting ‘sole author’ when in fact they were selecting ‘sole owner.’ If you did not intend to claim 100% or if you did so in error, we would appreciate if you would update your claim submission to clarify.1
That's… not right. To begin with, this was forwarded by the settlement administrator to authors with multiple claims — including anthology claims that had already been carefully calculated — but is worded as if it applies to all of that author's claims… and regardless of publisher, because one can discover which publisher sent this only by reading the settlement administrator's wrapper language. That, however, is just sloppiness, and may be a shared responsibility between the publisher and the settlement administrator. The rest… is not. My response — cleaned up for civility's sake, as this matter is taking place in a California courtroom (which imposes certain civility obligations on those before it) (all footnotes mine):
Dear Mr Cobblepot:
It is our understanding that the relevant contract between us reverted years, even decades, prior to the settlement's critical date2 in 20223 — a reversion that would have been readily apparent had you done even a cursory inspection of your own competently-maintained files.4 Once a license has terminated (and any relevant statute of limitations has expired), a licensee has no claim arising from or related to the underlying copyright (or trademark, or patent). That is precisely why authors can reissue previously-published works through new publishers, or in new and changed editions, or independently.
Because you selected Default [Publisher's] Share or 100% share, your claim currently reflects a claim for a portion of the payment to which you have no contractual right, regardless of either the language of the underlying contract5 or the default allocation in the Settlement Agreement. We understand that some publishers, in claiming a default share or 100%, did so in the mistaken belief that they were selecting either a default share or 100% because they had not checked their own records for contract status on the particular work.6 If you did not ensure that you had contractual rights to the work in question on the critical date7 or if you made your share selection through an administrative error, we would appreciate it if you would update your claim submission to zero for that work, so as to reduce the Special Master's workload to a manageable level.
P.S. At least 25 claims as to you were submitted claiming "100%" to the author only after authors had confirmed to their satisfaction that no contract with you remained in force on the critical date. Your blithe assumption that any and all errors were on the part of the authors is not only more than vaguely insulting — it is inconsistent with your prior advocacy in this matter.
I am not amused [further incivility redacted for the sake of your screen].
- Quoted from boilerplate communications to multiple authors dated 05 November 2026; personal information has been removed, as has the settlement administrator's wrapper language (which specifically identified the publisher as the source of the statement).
And "It is our understanding" of their own contract??? That rather establishes "doubt" as distinct from a positive statement like "Our contract states," especially when that clause is the publisher's own boilerplate…
- This is a necessary part of a class definition — the period of eligibility. It's not how I would have done it (and I'm no class action novice), and seems to have been agreed to primarily by the miscreants and publishers then shoved down authors' throats as "the best achievable." There's some validity to that, but see note 5 infra.
- Anthropic has publicly admitted to "ingesting" the material from the various pirate databases in August 2022. There is substantial reason to believe — with some evidentiary support, albeit not formally entered in the record in this matter — that actual LLM ingestion began at least 18 months prior to that, and that the August 2022 admission relates to the particular nature of generative-response model. That is outside the scope of the settlement as negotiated; it should not be outside the scope of consideration.
- Cf., e.g., Fed. R. Civ. Proc. 11(b) (requiring a prefiling investigation reasonable under the circumstances prior to submitting a "paper" in any federal civil proceeding); Cal. R. Prof. Cond. 3.1(a)(2) (may not present a "claim or defense in litigation" not warranted under existing law; whether this applies to a settlement-claim-processing system is admittedly an open question, in California and elsewhere); Cal. R. Prof. Cond. 3.3 (general duty of candor to the tribunal; again, whether and how this applies to a settlement-claim-processing system is more open in California than elsewhere); Cal. R. Prof. Cond. 4.1 (requiring counsel to be truthful and to disclose material facts to nonclients under many circumstances, including settlement-claim processing). It is theoretically possible — however implausible — that no attorney was involved in either the underlying publisher claim or in drafting the 05 November statement. That does not evade any Rule 11 responsibilities, however.
- A not-insignificant proportion of contracts do not so divide "settlement proceeds," ranging from those initially negotiated with other publishers that were later acquired by this one — and, as to at least three specific works of which I'm aware, reverted prior to that acquisition — to actual exception language, particularly for works concerning third-party licensed intellectual property with their common three-way split, often unequal but virtually never "50% to the publisher." Again, the actual splits would have been readily apparent with cursory review of the underlying files in the publisher's possession and control.
- There is no excuse for this. Publishers had actual and constructive knowledge that contractual rights were at issue regarding how claims were to be administered not later than submission of the settlement agreement for approval in 2024, a full six months before the claim-submission date and fourteen months before now. Publishers also had knowledge that at least some contracts had been terminated. The expectation that authors would be the ones to run down all the paperwork — and, perhaps more to the point, authors' decedency estates, guardianship estates, and ex-spouses with decree-based entitlement — merely reflects the problem with actual authors not being heard at the negotiating table. Whether it also implicates intraclass conflicts that should have resulted in judicial guidance prior to final approval is for another time — and both highly technical and buried in the realpolitik of class settlement negotiation as distinct from individual-settlement negotiation.
- Perhaps more to the point, if you did not ensure that you, as publisher, had fully performed all of your contractual duties — both as to the specific contract and more generally — such that you did not come into the equitable procedures of class actions with unclean hands, there are problems here. That includes such seeming minutiae as failing to register copyrights as required by the publishers' own contracts, thus vitiating the claims of both the publishers and authors in this settlement (contra Reed Elsevier, Inc. v. Muchnick, 559 U.S. 154 (2010) (a copyright settlement class can include class members whose otherwise-valid copyrights were not registered, so long as the class representatives' representative copyrights were registered)) and indeed otherwise. It is to say the least inequitable for you to demand years-after compliance by authors in the face of a policy and practice of prejudicial neglect near the time of publication. This would not excuse Anthropic at all, but does implicate appropriate shares of injured parties.
This also neglects publishers' general inaction when the works were first infringed by entry into the pirate databases later ingested by Anthropic (and others). Some of this concerns actual "original uploads" to the databases; however, two of the databases themselves provide sufficient publicly-accessible data (that would constitute an admission against interest) demonstrating mass copying from other databases.
Scrivener's Error