Taxes on AI subscriptions or AI capable hardware, to financially compensate IP holders for (potential) IP theft, could very well arrive in the near future, once the industry is mature.
If this shocks you and sounds preposterous, I'll remind you that in several EU countries, we still pay extra taxes on any and all storage mediums and on devices with built-in storage (tapes, CDs, DVDs, HDDs, SSDs, tablets, phones, etc) simply because they can be used to store pirated content, decisions based on laws from 50-100 years ago, and the money goes to the national unions and associations of music and arts IP holders. It's basically a lobby pushed and government legalized extortion racket that no voter agrees with or can change but has no choice but to conform either way.
So I guarantee you in the future, it will be the same for AI subscriptions and hardware capable of running LLMs locally. Every time you purchase a Claude or ChatGPT subscription, an Nvidia GPU, Intel/AMD SoC PC or an Apple/Qualcomm powered smartphone, you'll pay a government enforced tax to the likes of Sony, Axel Springer, etc. for licensing their IP, whether you want to or not. In the EU at least. US maybe not.
Under the settlement, Anthropic was forced to delete the pirated data they were training on.
Chinese labs can still train on pirated data. I doubt the Chinese models operate under similar licensing agreements.
The payment was for illegally downloading copyrighted material, not training. Training was explicitly ruled to be fair use.
Training on legally acquired / licensed data is potentially fair use.
And other district courts don't agree on this. The US district court for Delaware recently rejected a fair use defense for the use of copyrighted works to train AI. https://www.reedsmith.com/articles/court-ai-fair-use-thomson...
There are more cases in the pipeline. The massive NYT vs OpenAI is still ongoing. Nothing will be "settled" until this makes its way to the Supreme Court or Congress steps in.
> I doubt the Chinese models operate under similar licensing agreements.
US corps likely pay licenses when afraid to be sued, or have troubles getting that data, otherwise they just take data, which was demonstrated many times. The same apply to Chinese corps, alibaba totally can be sued in US.
Chinese labs can freely train on pirated material, which is a structural advantage.
Meanwhile, Chinese labs are speeding in a different county. Everyone knows they are speeding, yet the sheriff won't pull them over, so they just keep doing it.
This lax enforcement gives Chinese labs a structural advantage over American ones.
Do you purport to know for a fact that they're no longer training on the data they'd pirated? Because I highly doubt that.
Destruction of Materials: In addition to the monetary compensation, Anthropic has agreed to destroy the two libraries that allegedly contain the pirated works, as well as any derivative copies originating from those sources. Anthropic must certify in writing to class counsel that the destruction has been completed and that the allegedly infringing materials are permanently removed from its systems.
The libraries in question were Library Genesis (LibGen) and Pirate Library Mirror (PiLiMi).
If Anthropic is training models on deleted data, I'd be quite impressed.
there is much less intellectual property in China so it’s not ‘theft’ (as you can’t put property on information)