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Anthropic bought millions of physical books, cut off the bindings, scanned the pages, and discarded the originals as part of its book training pipeline. The internal effort was called Project Panama, and court filings say it was built to keep a private archive for Claude.

The ruling matters because it treats destructive scanning of legally purchased books as fair use, while drawing a line against pirated copies. That leaves AI firms with a narrower, more expensive path if they want large-scale text without licensing fights.

The company reportedly spent tens of millions of dollars on the operation and used a hydraulic powered cutting machine to speed up the process.

Related: Anthropic Project Panama, Claude training data, AI copyright ruling, destructive book scanning, fair use books

Source: Washington Post / Tech Brew / Ars Technica

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