Quarterly AI Update | Q2 2025

USA

Court Rules in Favor of Anthropic in AI Training Copyright Case

On June 23, 2025, the Northern District Court of California court ruled in favor of Anthropic, in a lawsuit brought by three authors for copyright infringement, alleging the company used their books without permission to train Claude AI. The court differentiates between the use of pirated books and those legitimately purchased and scanned by Anthropic. While the former would consider to be a violation of copyright laws, the latter may qualify as fair use under the U.S. Copyright Act. For AI training, the judge determined the use was highly transformative since it aimed to create something entirely different rather than replicating the originals. The court noted that Claude's output doesn't infringe on original copyrights and caused no market harm.