Industry Bodies Reject Productivity Commission’s AI Proposal: ‘It would be devastating’

Music industry bodies have warned the Productivity Commission’s proposed changes to the Copyright Act would “devastate” the industry and strip people of the right to control and commercialise their intellectual property.

In their latest response to the Harnessing Data and Digital Technology interim report, ARIA and PPCA further rejected the proposal to create a new fair dealing exception for text and data mining used for AI training.

They said the changes are unnecessary, and would denigrate existing AI licensing deals. It would disrupt copyright industries, which contribute 6-7% of GDP and employ over one million Australians, and destroy intellectual property control.

The bodies also said the proposed major government intervention in free markets would legalise wholesale theft of Australian sound recordings, rendering copyright worthless in the burgeoning market of AI products, applications, and services.

Their stances echo that of music rights management organisation APRA AMCOS, who earlier in the month, argued it would screw over artists and copyright owners, representing a massive loss for the cohort.

ARIA and PPCA CEO, Annabelle Herd, said the industry bodies aren’t necessarily opposed to AI, but stressed this particular proposal should be dismissed immediately.

“Recording artists have always embraced innovation and new technology,” she said. “There is simply no evidence base to justify an AI exception to copyright law when music licensing at scale for AI is effective and growing. A text and data mining exception would rip away the commercial and moral rights of artists and rights holders and hand the benefits of AI solely to major technology companies.”

She argued the existing framework is “100% clear”, and introducing a text and data mining exception — or any form of compulsory licence — would mean existing agreements, such as OpenAI’s deals with News Corp and The Guardian, are ripped up at the expense of the local industry.

“It aligns with global standards and effectively drives innovation, local cultural investment, and commercial activity. It enables licensing negotiations and agreements that give rights holders control over exploitation of their works,” she said.

“Australian songs, stories, art, research and creative works are among our nation’s greatest treasures: they deserve respect, permission and payment, not exploitation. The prospect of unfettered exploitation by AI companies of First Nations music and culture should horrify Australians.”

According to ARIA and PPCA, countries with text and data mining exceptions have failed to deliver promised investment and innovation. Japan and Singapore implemented broad exceptions before ChatGPT’s release, and neither have acknowledged breakthrough AI investment. The bodies said even the European Union acknowledges its 2019 regime is unfit for generative AI training.

They argued weakening Australia’s copyright framework would place Australia out of step with global standards, create unnecessary uncertainty, and devalue the very creative works that sustain jobs and revenue for Australian creators.