John Carreyrou, the New York Times reporter known for uncovering the Theranos scandal, and five other authors have launched a legal battle that could shake the tech world. The authors are suing xAI, Anthropic, Google, OpenAI, Meta, and Perplexity for allegedly using their books without permission to train AI models. This move is the latest in a growing tension surrounding intellectual property rights.

They chose individual action over a class action lawsuit.

The most striking aspect of the legal battle is that it wasn’t filed as a class action lawsuit. The authors stated they wanted to prevent giant tech companies from closing the case cheaply through class action lawsuits involving thousands of rights holders. The complaint emphasizes that companies shouldn’t be able to deflect high-value compensation claims with low amounts. This strategy demonstrates the authors’ determination regarding copyright and their pursuit of a precedent-setting decision.

The inclusion of well-known players in the industry, as well as xAI, founded by Elon Musk, is a first. xAI, which has joined giants like OpenAI and Google that have faced similar lawsuits before, will also face copyright infringement accusations. On the other hand, a spokesperson for Perplexity, one of the defendants, denied the accusations, stating they did not index the books.

The authors’ complaint also criticized Anthropic’s recent $1.5 billion settlement with half a million authors. The plaintiffs argued that such collective agreements only provide rights holders with a tiny fraction, about 2%, of the compensation they could receive under the Copyright Act. With studios like Disney and Warner Bros. filing similar lawsuits, intellectual property battles are likely to intensify by 2025.

So, do you think the unauthorized use of books to train AI models is technological advancement or theft? Share your thoughts in the comments!