Full Breakdown
Authors File Copyright Lawsuit Against AI Giants Over Pirated Works
12/24/2025, 11:23:39 AM
Overview of the Lawsuit
On December 22, 2025, investigative journalist John Carreyrou, along with five other authors, filed a copyright infringement lawsuit against major AI companies, including OpenAI, Google, Meta Platforms, Anthropic, xAI, and Perplexity AI. The lawsuit, lodged in the U.S. District Court for the Northern District of California, alleges that these companies illegally used pirated copies of their books to train large language models (LLMs) without obtaining proper licenses or compensating the authors.
Core Allegations
The plaintiffs assert that the defendants engaged in a "deliberate act of theft" by downloading copyrighted works from known pirate libraries such as LibGen, Z-Library, and OceanofPDF. The authors argue that their high-quality books serve as the "gold standard" for training data, which the AI companies exploited to develop systems valued in the hundreds of billions of dollars. Unlike previous lawsuits, this case is notable for not seeking class action status, as the authors aim to pursue individual jury trials to secure maximum statutory damages of up to $150,000 per infringed work.
Background Context
This lawsuit follows a significant settlement in August 2025, where Anthropic agreed to pay $1.5 billion to a class of authors for similar copyright infringements. However, the plaintiffs in the current case criticized the settlement, stating that the compensation offered—approximately $3,000 per work—was insufficient, representing only 2% of the statutory maximum. The authors opted out of this settlement, believing that pursuing individual claims would yield better financial outcomes.
Key Figures Involved
The plaintiffs in the lawsuit include:
- John Carreyrou: Pulitzer Prize-winning journalist and author of "Bad Blood: Secrets and Lies in a Silicon Valley Startup."
- Lisa Barretta: Author of multiple books on spirituality and psychic development.
- Philip Shishkin: Author of "Restless Valley," detailing Central Asian political turmoil.
- Jane Adams: Psychologist and author of several nonfiction books on family relationships.
- Matthew Sacks: IT professional and author of "Pro Website Development and Operations."
- Michael Kochin: Political science professor and author of "Five Chapters on Rhetoric."
Official Statements & Responses
The defendants have not provided detailed responses to the lawsuit. However, xAI issued a brief statement claiming, "Legacy Media Lies." Perplexity's head of communications, Jesse Dwyer, denied that the company indexes books. The legal team representing the plaintiffs, including Freedman Normand Friedland LLP, emphasized that the lawsuit is not a class action, allowing each author to pursue their claims independently.
Criticism & Opposition
U.S. District Judge William Alsup, who oversaw the previous Anthropic settlement, has expressed skepticism about the tactics employed by ClaimsHero, a platform encouraging authors to opt out of settlements. He characterized their actions as "a fraud of immense proportions" and ordered changes to their communications. The authors in the current lawsuit aim to challenge the prevailing model of collective settlements that often favor defendants.
What's Next
The authors have until January 16, 2026, to finalize their claims, and a preliminary court hearing date has yet to be established. The outcome of this lawsuit could significantly impact the economics of AI training, potentially leading to higher costs for AI companies and users alike, as they may need to negotiate comprehensive licensing agreements or face substantial judgments for copyright infringement.
Verbatim Quotes
- “LLM companies should not be able to so easily extinguish thousands upon thousands of high-value claims at bargain-basement rates.” — John Carreyrou, Journalist and Plaintiff
- “Defendants helped themselves to the copyrighted works of hundreds of authors—including bestselling writers, Pulitzer Prize-winning journalists, and creators of widely read nonfiction and fiction.” — Lawsuit Complaint
- “Legacy Media Lies.” — xAI Statement
