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Harry Potter publisher benefits from landmark $1.5bn AI copyright settlement

The publisher of the Harry Potter series is set to receive a multimillion-pound payout as a beneficiary of a $1.5bn (£1.12bn) copyright settlement between artificial intelligence startup Anthropic and thousands of authors over the use of copyrighted works to train chatbots.

Bloomsbury, which publishes bestselling authors including Sarah J Maas, Susanna Clarke and JK Rowling, said 14,087 of its titles were included in the settlement.

The proposed compensation is approximately $3,000 per title.

The London-based publisher expects to receive its share of the settlement in instalments, potentially beginning in the second half of its current financial year. The proceeds will be shared with the affected authors.

After an estimated 10 per cent deduction for legal fees and other expenses, Bloomsbury and the group of affected authors are expected to receive approximately $19m (£14m).

Copyright has emerged as a major battleground in the artificial intelligence boom, as tools such as Anthropic’s Claude chatbot suite are trained on vast volumes of data collected from the open web, including copyrighted material such as novels and news articles.

US-based AI companies have argued that using such material is permitted under the legal doctrine of fair use, which allows copyrighted works to be used without the owner’s permission in certain circumstances.

However, creative professionals and artists worldwide have increasingly called on AI companies to obtain permission before using their work, or at least compensate them for it.

US District Judge Araceli Martínez-Olguín said on Monday that the settlement offered “meaningful relief” to affected authors and publishers.

The case was initiated in 2024 after novelist Andrea Bartz and two other authors filed a lawsuit against Anthropic. Claims have been submitted for approximately 91% of the 482,000 works covered by the case.

Lead counsel for the authors, Justin Nelson, described the agreement as “the largest known copyright recovery in history”.

The settlement represents the first major resolution among dozens of copyright lawsuits filed in the US by authors and news organisations over the use of their work by AI companies. Many of the other cases remain before the courts.