July 2025 – Chat GPT Is Eating the World

Strike 3 Holdings sues Meta for copyright infringement of adult videos, including alleged use to train AI model

Wild. This lawsuit raises the total number of U.S. copyright lawsuits against AI companies to 48!
Read more: Strike 3 Holdings sues Meta for copyright infringement of adult videos, including alleged use to train AI model
The dilemma over whether Anthropic is raising an advice of counsel defense, and if Anthropic must reveal attorney-client communications to support its innocent infringement defense to try to reduce statutory award to $200 per work

It looks like Anthropic is stuck again between a rock and a hard place. Parties typically are reluctant to waive attorney-client privilege in any context. But, asserting a defense of reliance on advice of counsel would waive the privilege to the relevant advice. But Judge Alsup goes even further and instructs Anthropic to show cause…
Read more: The dilemma over whether Anthropic is raising an advice of counsel defense, and if Anthropic must reveal attorney-client communications to support its innocent infringement defense to try to reduce statutory award to $200 per work
Anthropic seeks stay of class action suit by Bartz book authors as class action case marches to Dec. 1 trial

Anthropic filed a motion to stay the class action lawsuit filed by Bartz book authors. Judge Alsup immediately set a briefing schedule: Although Anthropic cannot bank on Judge Alsup granting a stay of the case, with a trial date of Dec. 1, Anthropic will be able to file an interlocutory appeal under Federal Rule Civil…
Read more: Anthropic seeks stay of class action suit by Bartz book authors as class action case marches to Dec. 1 trial
Bartz scores discovery victory v. Anthropic to get discovery of financial info for executives and Board Meetings re: pirated books

At yesterday’s discovery hearing, as reported by Annelise Levy of Bloomberg Law, Judge Alsup ruled largely in favor of the plaintiff Bartz book authors: Judge Alsup referred the plaintiffs and a lawyer from OpenAI to Judge Stein in the MDL Litigation to request the production of OpenAI documents and testimony for this litigation. Judge Alsup…
Read more: Bartz scores discovery victory v. Anthropic to get discovery of financial info for executives and Board Meetings re: pirated books
Judge Alsup asks if Anthropic has given up a defense based on reliance of counsel presumably related to pirated books

Judge Alsup has asked the parties to let him know by 5 pm today whether Anthropic has given up the potential defense of reliance an advice of counsel. Great question. Presumably, this advice of counsel defense would relate to Anthropic’s conduct in downloading copies of pirated books from shadow libraries online — and help to…
Read more: Judge Alsup asks if Anthropic has given up a defense based on reliance of counsel presumably related to pirated books
Pres. Trump supports fair use in AI training. Notes importance to national interest. (Video)

After releasing the AI Action Plan for the United States, President Trump strongly supported fair use in AI training. He noted the national interest in developing AI and staying ahead of China, a country that will not require copyright licensing of all data in AI training. Pres. Trump said it’s neither common sense nor workable…
Read more: Pres. Trump supports fair use in AI training. Notes importance to national interest. (Video)
Judge Alsup asked OpenAI’s attorney to appear at today’s discovery hearing

Judge Alsup held a discovery hearing today in Bartz v. Anthropic. The dispute apparently involves OpenAI because Judge Alsup asked OpenAI’s attorney to appear at hearing. Still waiting to hear what transpired at the hearing. Judge Alsup’s Order Original Order
Read more: Judge Alsup asked OpenAI’s attorney to appear at today’s discovery hearing
Bartz adds class action specialist Jallé H. Dafa to legal team

The Bartz book authors have added Jallé H. Dafa of Lieff Cabraser to their legal team in anticipation of the Dec. 1st trial. Dafa is a partner in the San Francisco office and specializes in class-action litigation. Dafa graduated from Berkeley Law and clerked for Judge Corley in the Northern District of California and Judge…
Read more: Bartz adds class action specialist Jallé H. Dafa to legal team
Bartz seeks to compel Anthropic to produce financial statements, revenue projections, and minutes of Board of Directors

The Bartz book authors, buoyed by Judge Alsup’s certification of a class action, are now asking the Judge to compel Anthropic to produce Board of Directors’ minutes related to “Concern or Relate to Your training data; Your intention to commercialize, monetize, or productize Your LLMs; or projections regarding revenues or profits for particular products or…
Read more: Bartz seeks to compel Anthropic to produce financial statements, revenue projections, and minutes of Board of Directors
Judge Lee moves hearing on Anthropic’s motion to dismiss from Jul. 30 to Sept. 3

Judge Lee just moved the hearing on Anthropic’s motion to dismiss the first amended complaint filed by music publishers from July 30 to Sept. 3, 10 AM in San Jose, Courtroom 7, 4th floor. Not a big deal but probably not the best of news for Anthropic, which is facing potentially existential liability in statutory…
Read more: Judge Lee moves hearing on Anthropic’s motion to dismiss from Jul. 30 to Sept. 3

Month: July 2025