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September 7, 2026

Middlemen Never Miss a Settlement Meeting

Photo by Lala Azizli on Unsplash

There is an old rule in business: if you find a pile of money sitting on a table, the person who didn't work for it will be the first one to explain why they deserve a cut. We are seeing this play out in real-time as the legal dust settles between AI giants and the creative class.

The current friction stems from the aftermath of a massive settlement involving Anthropic. While the AI firm agreed to pay out for their use of copyrighted material, a new conflict has emerged between the creators who wrote the books and the infrastructure that distributed them. According to a report by TechCrunch, authors are now pushing back as publishers and agents attempt to claim a significant portion of those settlement funds, often citing legacy contract clauses that were written long before large language models were even a whiteboard sketch.

It is the classic platform-versus-creator struggle, updated for the 2020s. The publishers argue that their existing rights covering licensing and secondary uses should apply to AI training payouts. The authors, quite reasonably, feel that a one-time settlement for the unauthorized ingestion of their life’s work shouldn't be treated like a standard paperback royalty split.

The Infrastructure Tax

In the hosting world, we’ve seen variations of this for decades. Whether it’s patent trolls or copyright clearinghouses, there is always an intermediary trying to insert themselves into the flow of value. From a business perspective, the publishers are simply protecting their margins. They see AI as a new distribution channel or a new type of derivative work. If they let this money bypass them, they set a precedent that could devalue their entire back catalog in the age of synthetic media.

However, this aggressive stance risks alienating the very talent that keeps the industry alive. If you are an author watching a publisher take 50% or more of a legal settlement for work they didn't have to defend in court, you start looking for a way to disintermediate the process entirely. We are moving toward a world where the contract is the product, and if the contract is predatory, the talent will move to decentralized or direct-to-consumer models faster than a legacy publisher can file an injunction.

I’ve always admired the audacity of an agent who takes a commission on a settlement for a problem they didn't solve, using a contract they didn't modernize.

The Future of Ownership

This isn't just about Anthropic or a single check. It is about who owns the rights to "train" on human intelligence. If the people who actually do the thinking are relegated to the bottom of the payout list, the quality of the data we’re feeding these models is going to crater. You can't build a sustainable ecosystem by starving the primary producers to satisfy the legacy distributors.

The era of vague licensing clauses is over; if you aren't specific about AI rights in 2026, you're just leaving money on the table for the lawyers to fight over later.