Reddit Stock Up After Receiving ‘Motion To Remand’ Against Anthropic In Scraping Row

• The court concluded that Reddit's claims allege extra elements that are qualitatively different from the rights protected by the Copyright Act.
• In June last year, Reddit filed a lawsuit against Anthropic in the San Francisco Superior Court, alleging breach of contract and unjust enrichment.
• Anthropic has been trying to keep the case in Federal Court by arguing that Reddit’s case implicates federal copyright law and thus must remain there.

Reddit (RDDT) stock jumped nearly 3% on Friday after the U.S. District Court for the Northern District of California, granted Reddit's motion to remand against Anthropic.

Motion of remand is a legal request to send the case back to where it was originally removed. 

According to a ruling posted on its website, the court concluded that Reddit's claims allege extra elements that are qualitatively different from the rights protected by the Copyright Act. “Accordingly, Plaintiff's Motion to Remand is tentatively GRANTED, and this action should be returned to the San Francisco Superior Court,” the filing said.

“After reviewing the parties’ briefs, the relevant legal authority and the pleadings, the Court tentatively finds that while Reddit’s content at issue may fall within the broad subject matter of copyright, none of the asserted causes of action against Defendant Anthropic PBC seeks to vindicate rights equivalent to those protected by copyright,” the court added.

Anthropic’s Efforts

Anthropic has been trying to keep the case in Federal Court by arguing that Reddit’s case implicates federal copyright law and thus must remain there.

Anthropic last year said that Reddit’s allegation that Anthropic scraped the platform’s user posts to train its large language model is a “quintessential” copyright claim. It said in a court filing that “federal court is the proper forum for Reddit’s claims.”

Reddit’s Claims

Reddit had filed a lawsuit against Anthropic in the San Francisco Superior Court last year in June, alleging a breach of contract, unjust enrichment, tortious interference, and unfair competition. Anthropic had moved the case to Federal Court in July.

Reddit has also said that its claims in the lawsuit against Anthropic aren’t completely preempted by U.S. copyright law because each of them contains an extra element that isn’t required for a copyright claim.

How Did Stocktwits Users React?

Retail sentiment around RDDT stock trended in ‘neutral’ territory amid ‘high’ message volume.

One user predicted that Reddit would win the case or reach a settlement with Anthropic in view of the AI firm’s potential IPO.

Shares in the company have fallen 40% year-to-date.

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