In Corporate Counsel Article, Regina Penti and Matt Rizzolo Examine AI Firms Incentives to Settle Copyright Infringement Lawsuits

In a Corporate Counsel and Law.com article, Regina Sam Penti, a partner in the technology and IP transactions practice and co-lead of the firm’s artificial intelligence (AI) industry group, and IP litigation partner Matt Rizzolo discussed AI firm incentives to settle copyright infringement lawsuits, including Anthropic’s proposed $1.5 billion settlement in a case brought by a class of authors and publishers who alleged copyright infringement arising from Anthropics’s use of copyrighted materials to train its generative AI models.

“It’s reasonable that some companies will see the numbers and say that it’s safer to resolve the cases, because then it becomes a line item, a business cost, rather than a risk that is hanging over their heads for years,” said Regina.

Matt notes that responsible AI companies will boost upfront compliance. “A few million dollars up front in licensing fees for compliance is worth potentially heading off billions of dollars in damages down the road,” said Matt.