The federal government of Australia has decided against providing major technology companies with a copyright exemption that would have allowed them to train artificial intelligence models on copyrighted material without facing legal repercussions. This decision comes amidst calls from AI advocates for a specific copyright exception that would enable companies to use Australian creative works in developing large language models, such as those behind ChatGPT.
Earlier this year, the Productivity Commission initiated an inquiry into potential legal reforms to harness the benefits of emerging technologies. The commission’s findings suggested that AI could contribute an additional $116 billion to the Australian economy over the next decade if not hindered by restrictive legislation.
“Like any new technology, AI comes with risks. But we can address many of these risks by refining and amending the rules and frameworks we already have in place,” said Productivity Commissioner Stephen King in August. “Adding economy-wide regulations that specifically target AI could see Australia fall behind the curve, limiting a potentially enormous growth opportunity.”
Debate Over Fair Dealing Exceptions
One of the contentious issues highlighted in the interim report was the proposal to introduce a “fair dealing” copyright exception for text and data mining. The report noted that similar exceptions exist in regions such as the European Union, the United States, the United Kingdom, Japan, and Singapore. An Australian version of this exception would not only facilitate AI model training but also support non-AI researchers in analyzing large datasets.
“It should also be noted that a TDM exception would not be a ‘blank cheque’ for all copyrighted materials to be used as inputs into all AI models,” the commission stated. “The use must also be considered ‘fair’ in the circumstances – this requirement would act as a check on copyrighted works being used unfairly, preserving the integrity of the copyright holder’s legal and commercial interests in the work.”
The Productivity Commission solicited submissions on the data mining issue, with a final report expected later this year. However, the Labor government has preemptively decided against any exceptions, emphasizing the importance of protecting Australian creatives.
Government Stance and Industry Reactions
Attorney-General Michelle Rowland underscored the government’s commitment to ensuring that Australian creatives benefit from AI-driven opportunities. In a statement released last night, she stated, “Artificial Intelligence presents significant opportunities for Australia and our economy, however it’s important that Australian creatives benefit from these opportunities too. Australian creatives are not only world-class, but they are also the lifeblood of Australian culture, and we must ensure the right legal protections are in place.”
Opposition Leader Sussan Ley has been vocal about her concerns regarding tech companies using data from Australian individuals, artists, and media to train AI models. “It’s not appropriate for big tech to steal and use it for their own ends without paying for it,” she remarked in August.
Future Steps and Collaborative Solutions
The government’s copyright and AI reference group is convening to explore fair and legal methods for utilizing copyright material in AI. The group aims to clarify and possibly update existing laws, as well as investigate cost-effective solutions for lower-value copyright claims.
“The tech industry and the creative sector must now come together and find sensible and workable solutions to support innovation while ensuring creators are compensated,” Rowland said. “The government will support these next steps through the renewed focus tasked to the copyright and AI reference group.”
The decision not to grant a copyright exemption highlights the government’s focus on balancing technological advancement with the protection of creative rights. As the conversation around AI and copyright continues, stakeholders from both the technology and creative industries will need to collaborate in developing frameworks that support innovation while respecting intellectual property rights.
