The federal government has rejected calls by big technology players to change copyright laws to give free access to creative material to train AI.
The Productivity Commission had proposed a change to copyright law to include a fair dealing exception that would cover text and data mining without permission from copyright owners.
And Atlassian co-founder Scott Farquhar, in a National Press Club address in July, had said that Australia's copyright rules are a barrier to many AI companies training or hosting their models in Australia.
However, copyright owners likened the proposal to “theft” to serve the interest of tech billionaires.
"This government has repeatedly said that there are no plans to weaken copyright protections when it comes to AI," said attorney general Michelle Rowland.
"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."
She said it’s important that creatives benefit from the opportunities of AI.
“Australian creatives are not only world class, they are also the lifeblood of Australian culture, and we must ensure the right legal protections are in place,” she said
Owners and representatives of copyrighted material praised the federal government's decision.
Copyright Agency CEO Josephine Johnston applauded the government’s leadership in supporting Australian writers, artists and publishers.
“Australian copyright laws enable ongoing investment in the creation of new works and provide thousands of jobs for those working in the creative industries,” she said.
“In the digital age, licensing access and providing fair payment for the use of material should be the objective of all concerned.”
The announcement also recognises the importance of creative works in future AI development.
“Creative works are an essential input into AI development,” said Johnston.
“But creators must be compensated for their time and skill. AI developers should adopt business models that reflect the significance of creative input and contribute to a future where both creativity and innovation can thrive.”
News Corp Australasia’s executive chairman Michael Miller said the government’s announcement is a welcome catalyst for tech and AI companies to license Australian content.
“By upholding the creator’s right to control access, terms of use and payment, it reinforces that our copyright law works to ensure effective market outcomes,” he said.
“The announcement secures a sustainable and thriving future for Australia’s culture, news media and creative sectors, guaranteeing that Australian stories will continue to resonate powerfully at home and across the world, which is vital for a robust democracy.”
The Australian Recording Industry Association (ARIA) and Phonographic Performance Company of Australia (PPCA) welcomed the government’s announcement that it will not introduce a text and data mining exception into Australian copyright law.
“This decision reinforces Australia’s commitment to its artists and creative industries, ensuring that consent, control, and compensation remain at the heart of copyright in the age of artificial intelligence," said Annabelle Herd, CEO of ARIA and PPCA.
"It recognises the inherent value of Australian creativity and culture, including First Nations culture. It recognises that copyright and IP laws are the foundation of the creative economy, the digital economy, and the technology industry.
“Make no mistake: it is not for tech giants to determine how creator’s IP is utilised, even in negotiation. There are no grounds for new loopholes or amendments that diminish a creator’s right to transparency and permission over how their work is used. Protecting that agency is how we build a creative economy that continues to grow, inspire and compete globally.
“The current copyright licensing structures are proven and reliable, but also flexible, fast and supportive of creativity and innovation.
"IP laws are what tech companies rely on to protect and monetise their products and they drive innovation. The growing number of music licensing deals with ethical AI companies make that irrefutable.
“We should not be considering new models or creating loopholes, we should be upholding the laws that already sustain thousands of jobs and exports.”
Bridget Fair, CEO of industry body Free TV, said the government had made the right call in protecting the foundations of Australia's creative and news sectors.
"The government has recognised that we don't need to weaken copyright protections to drive innovation – quite the opposite," Fair said.
"Current copyright law already creates the right environment for negotiations between rightsholders and technology companies through proper licensing frameworks. A TDM exception would have undermined these frameworks and legitimised the use of Australian content to train AI systems without express permission or payment to copyright holders.
"The government has rightly concluded that productivity growth should not come at the expense of the local news media and creative sectors that underpin Australian democracy and culture.
"Commercially negotiated licensing agreements – supported by meaningful transparency requirements – will deliver better outcomes across the board. Australian technology companies will gain access to high-quality licensed data, ensuring confidence in AI outputs and genuine productivity improvements.
"News organisations and content creators will be able to licence their copyright material to receive fair compensation for their work. This approach strengthens both our creative industries and our technology sector."
(DISCLOSURE: Chris Pash is a former director and chair of the Australian Society of Authors and is a former board director of the Copyright Agency.)
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