Core Viewpoint - Two authors have filed a class-action lawsuit against Apple, accusing the company of illegally using a pirated dataset, Books3, to train its AI models, including OpenELM and foundational language models [1][4]. Group 1: Lawsuit Details - The plaintiffs, Grady Hendrix and Jennifer Robertson, claim that Apple utilized the Books3 dataset, which contains numerous copyrighted pirated books, for training its open-source models [1]. - The lawsuit includes six main demands: seeking class-action status, economic compensation (including compensatory damages and restitution), a permanent injunction against Apple's continued infringement, destruction of all infringing AI models and training datasets, and coverage of legal costs by Apple [4]. Group 2: Context of the Lawsuit - This lawsuit arises during a critical period of copyright disputes related to AI training, with Anthropic recently settling a similar case for $1.5 billion, while Meta won a lawsuit based on a "fair use" defense [4]. - The core of the dispute revolves around the applicability of the "fair use" principle, with the authors asserting that unauthorized use constitutes infringement [4].

Core Viewpoint - The recent U.S. court ruling allows AI companies like Anthropic to use legally purchased books for training AI without needing the authors' permission, citing "transformative use" under the Fair Use principle, which promotes technological innovation and public interest [2][3][14]. Group 1: Court Ruling Details - The court's decision marks the first recognition of AI companies' rights to use books, significantly reducing copyright risks associated with AI training data [3]. - The ruling specifies that while the use of legally purchased books for AI training is permissible, the use of pirated books does not qualify as fair use and remains subject to copyright infringement claims [15][17]. - The case originated from accusations by three authors against Anthropic for using both legally purchased and pirated books to train their AI model, Claude [6][13]. Group 2: Background on Anthropic - Anthropic's co-founder Ben Mann downloaded 196,000 copyrighted books from a piracy site in 2021 and later amassed at least 5 million copies from other sources [7][8]. - Despite recognizing the legal risks of using pirated content, Anthropic retained all pirated copies until March 2023, when they began training Claude with a subset of books from their digital library [9][10]. - In February 2024, Anthropic shifted to legally procuring and scanning books, purchasing millions of physical copies [11]. Group 3: Implications and Reactions - The ruling has sparked discussions about whether AI can be equated with human reading and understanding, and how creators can protect their intellectual property [19]. - Similar cases in the past, such as Google Books and GitHub Copilot, have set precedents for the application of fair use in AI training, indicating a trend in favor of technological innovation over copyright restrictions [23][32]. - The outcome of this case may influence ongoing litigation involving OpenAI and Meta, as it reflects a judicial inclination towards supporting AI companies in their use of copyrighted materials [34].