Leaked AI copyright proposal triggers political firestorm

Senior executives from OpenAI and Anthropic were meeting with federal ministers just as its proposals to rewrite copyright law for AI leaked to the public, sparking fury from creatives and critics across the political spectrum.

The Albanese government has been trying to thread the needle of enticing major AI companies to grow their investment in Australia, while also addressing concerns about the risk and harms associated with the AI boom.

AI companies have said Australia's copyright regime is a sticking point over plans to invest here. They fear their unauthorised use of copyrighted material to create — or "train" — their AI models is breaking the law.

Earlier this week, senior ministers met with senior US executives of the two top AI companies, Anthropic's special international envoy, Jeffrey Bleich, and OpenAI's vice president of global policy, Ann O'Leary, amid their push for an Australian expansion.

Confidential AI copyright consultations leaked

After ruling out a broad exemption for AI companies to train their models on copyrighted materials in Australia late last year, the ABC revealed yesterday the government held secret consultations earlier this month that would pave the way for AI companies to train their models in Australia.

Under one option, AI companies could gain permission after striking a minimum number of deals with rights holders, without paying other creators whose work they used.

The other option would require companies to either pay to a new central body that would distribute money to rights holders, or to separate organisations representing various groups of creators, like the music or writing industry.

Both options would give creators the right to opt-out, reversing the existing onus for companies to seek permission to use copyright material, and would come with other protections and requirements on its use.

A spokesperson for Attorney-General Michelle Rowland told the ABC on Tuesday the government was consulting creators, media organisations and AI companies about options intended to give creators control and fair payment.

OpenAI also confirmed on Tuesday it was participating in the consultations and said it was committed to working constructively with the government, creators and industry.

In a submission to the government's AI inquiry released today, OpenAI explicitly stated that Australia's copyright settings were a factor in its plans to grow its Australian presence.

"Copyright policy is part of that investment environment," OpenAI said.

Creatives and political opponents hammer government for proposals

Musician Holly Rankin, who performs as Jack River, criticised the proposals for shifting the burden of protecting copyright onto individuals.

Ms Rankin accused the government of breaking promises that creators would retain control over their work, and questioned why attracting investment should require concessions from them, if the proposals were put through.

"They also say they're very capable of doing everything. It seems everything except for licensing content correctly," Ms Rankin said.

Advocacy group Save Our Arts called on the government to rule out a change that would make AI training opt-out, rather than opt-in.

"The starting point should be simple: if somebody wants to commercially exploit an Australian creator's work, they should seek permission from the person who owns the rights," campaign director David Latham said.

The Coalition accused the government of departing from its assurances to creators, while saying it wanted Australia to attract leading technology companies.

In a joint statement on Tuesday, shadow attorney-general Michaelia Cash and communications spokeswoman Sarah Henderson called for the government to release the full consultation material and rule out allowing AI training on copyright material without consent.

"But you do not attract investment by simply giving away Australians' intellectual property," Senator Cash said.

She said AI companies should negotiate deals with rights holders under existing copyright law, which she argued should be enforced rather than weakened.

Greens arts spokeswoman Sarah Hanson-Young said the government should protect creators' ability to decide how their work was used and receive payment for it.

"If AI companies want to use Australian content, they need to pay for it just like everyone else," she said in a statement on Wednesday.