APRA AMCOS Blasts Productivity Commission's 'Fair Deal' Exception For AI & Data Mining

APRA AMCOS has hit back at the Productivity Commission’s ideas around exploring the productivity potential of artificial intelligence (AI) and creating a new “fair deal” exception in the Copyright Act for AI-generated text and data mining.

The response comes after the Productivity Commission – the federal government’s independent research and advisory body – recently released a new interim report called Harnessing data and digital technology.

Declaring that the suggestions “miss the mark,” the music rights management organisation instead calls on the Productivity Commission to abandon its proposed Text and Data Mining (TDM) exception and investigate investment incentives to attract AI development in Australia that also protect creators.

“Rather than undermining copyright protections, the Commission should explore investment incentives that could attract genuine AI development to Australia while maintaining appropriate creator protections,” Dean Ormston, CEO of APRA AMCOS, explained in a statement.

Ormston added, “Tax benefits and offsets for companies committing to transparent, licensed AI development would create positive economic opportunities without sacrificing the rights of Australian creators, but the Commission has missed the mark entirely.”

APRA AMCOS also revealed the “failings” in the Commission’s findings. These include a severe lack of “demonstrated expertise” in creative industries or cultural economies, only interviewing one creator group, and contradicting 2022 findings.

Positive policy alternatives are what APRA AMCOS seek, such as having investment incentives targeting companies that commit to licensing arrangements for training AI data centres. They also suggested transparent disclosure of content sources and revenue-sharing with rights holders.

APRA AMCOS is now calling on the Productivity Commission to reject the text and data mining exception and develop market-based frameworks for AI innovation and the protection of creators.

Ormston concluded, “The current report represents a false choice between innovation and creator protection. Government investment incentives could demonstrate that these objectives are complementary, positioning Australia to capture AI development benefits while maintaining the foundations that support cultural creativity.”

Last month, the Australian Recording Industry Association (ARIA) and Phonographic Performance Company of Australia (PPCA) said the idea of the TDM exemption is “ill-considered and contrary to Australia’s best interests.”

“Australian songs, stories, art, research and creative works are among our nation’s greatest treasures: they deserve respect, not exploitation,” said ARIA CEO Annabelle Herd.

“Instead of rushing to open the gates for AI companies to unrestricted and free access to the valuable intellectual property of artists and creators, the Productivity Commission should work to optimise existing licensing frameworks that can deliver promised AI productivity gains without gutting Australian copyright.”

APRA AMCOS’ recent AI and Music report surmised that 82% of music creators in Australia expressed concerns about AI preventing them from making a living.