Universal Music Group (UMGNF) and other media publishers have filed a lawsuit against Anthropic, an artificial intelligence (AI) start-up. The music companies have accused Anthropic of using copyrighted song lyrics and other texts to train its AI chatbot, Claude, for human interactions.
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The publishers allege that Anthropic’s chatbot generates songs with lyrics that closely resemble copyrighted content without proper permission. Concord Music Group, ABKCO, Worship Together Music, and Plaintiff Capital CMG, are among the other publishers that filed the lawsuit in a federal court in Tennessee.
The publishers are seeking a jury trial and several other remedies. This includes payment of their legal fees, the destruction of all infringing material, public disclosure of how Anthropic’s AI model was trained, and a financial penalty of up to $150,000 for each infringed work.
The lawsuit is the first for Anthropic, which is backed by Amazon (AMZN) and Alphabet’s (GOOGL) Google. It is worth mentioning that other generative AI platforms, including those from Meta Platforms (META) and Microsoft (MSFT)-backed OpenAI, have also faced lawsuits from copyright owners for using their content.
Is Universal Music a Good Stock to Buy?
With nine Buys and two Hold ratings, Universal Music stock earns a Strong Buy consensus rating. On TipRanks, the average stock price forecast of $28.84 implies a 10.92% upside potential to current levels. The stock has gained 4.9% year-to-date.
