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Anthropic Wins Early Round in Music Publishers’ AI Copyright Case

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Artificial intelligence company Anthropic has successfully defended itself against a motion to block its use of lyrics owned by Universal Music Group (UMG) and other publishers in training its AI-powered chatbot, Claude. A California federal judge ruled on Tuesday that the publishers’ request for a preliminary injunction was too broad and did not demonstrate that Anthropic’s actions had caused “irreparable harm.”

The Legal Dispute

The music publishers, including UMG, Concord, and ABKCO, filed a lawsuit against Anthropic in 2023, accusing the company of copyright infringement. The suit claims that Anthropic used lyrics from at least 500 songs—by artists such as Beyoncé, the Rolling Stones, and the Beach Boys—without permission to train its chatbot, Claude, which can generate human-like responses to prompts.

In rejecting the motion, U.S. District Judge Eumi Lee stated that the publishers had not shown that Anthropic’s actions had caused the alleged harm, particularly in terms of a potential impact on their licensing market. Judge Lee emphasized that the question of fair use, which remains a key issue in these lawsuits, was not addressed in this specific ruling.

Publishers’ Response and Future Outlook

While the judge’s decision was a setback, the publishers remained confident in their broader case against Anthropic. They expressed that they are “very confident” in their legal position moving forward.

Anthropic also responded positively, with a spokesperson noting their satisfaction that the court rejected the publishers’ “disruptive and amorphous request.”

Industry Context

This case is part of a broader legal trend involving the use of copyrighted material to train AI systems. Several tech companies, including OpenAI, Microsoft, and Meta Platforms, have faced similar lawsuits, with defendants arguing that their AI systems’ use of copyrighted works falls under “fair use” provisions of U.S. copyright law, which permits the study of materials to create new, transformative content.

While the legal questions around fair use will likely determine the outcome of these lawsuits, this particular ruling focused on the immediate request for an injunction, not the broader issue of copyright infringement.

Interim SEC Chief Casts Sole Vote Against Suing Musk Over Late Twitter Disclosure

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In January, just before Republicans took control of the U.S. Securities and Exchange Commission (SEC), the agency held a closed-door vote on whether to sue Elon Musk for securities law violations related to his late disclosure of purchasing shares in Twitter (now X). According to sources familiar with the vote, four of the five commissioners, including Republican Hester Peirce, voted in favor of suing Musk, while the acting SEC chief, Republican Mark Uyeda, cast the lone dissenting vote.

This vote occurred just days before the SEC filed a lawsuit against Musk on January 14, alleging that he had violated disclosure rules by failing to report his purchase of more than 5% of Twitter’s shares within the required 10-day window. Musk’s late disclosure, which came 21 days after the purchase, allegedly allowed him to acquire more shares at a lower price, saving $150 million on his eventual acquisition of the company.

Uyeda reportedly expressed concerns over the penalty Musk faced and pressed SEC enforcement staff to confirm that politics were not influencing the case, asking them to sign pledges to that effect, which the staff refused. Despite Uyeda’s concerns, Peirce joined the three Democratic commissioners in voting to proceed with the lawsuit.

The SEC’s investigation into Musk, which began in 2022, focused not only on the timing of his disclosure but also whether he had acted with any intent to manipulate the stock price. Musk has maintained that the delay was due to a misunderstanding of the SEC’s rules. The SEC ultimately did not pursue charges alleging intent.

The delay in bringing the case has raised questions among legal experts, who have questioned why the SEC waited so long to act, particularly given the politically charged nature of the case. Musk has had a longstanding feud with the SEC, dating back to 2018 when the agency sued him for misleading investors in a tweet about taking Tesla private.

Musk has until April 4 to respond to the SEC’s summons in this case.

Elon Musk Issued Summons in SEC Case Over Twitter Stake Disclosure

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Elon Musk, the world’s richest man and a prominent adviser to former U.S. President Donald Trump, has been issued a summons in connection with the Securities and Exchange Commission (SEC) lawsuit against him. The summons and other legal documents were served on March 14 to a security guard at the Brownsville, Texas, headquarters of Musk’s company, SpaceX, according to a court filing on Thursday.

The SEC lawsuit, filed in January, accuses Musk of delaying the disclosure of his substantial stake in Twitter in 2022. The regulator claims Musk violated federal securities law by waiting 11 days past the required deadline to disclose his initial 5% purchase of Twitter’s common shares. Under SEC rules, investors are required to disclose any ownership stake that exceeds 5% within 10 calendar days, which in Musk’s case should have been by March 24, 2022.

Musk and his legal team have not yet responded to requests for comment, and a spokesperson for the SEC declined to provide additional details.