ARIA Claps Back At Productivity Commission Report Calling For Data Mining 'Fair Use'

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

In the report, the Productivity Commission presents the government with recommendations that are focused on four potential policy reform areas.

Those reform areas include exploring the productivity potential of artificial intelligence (AI), establishing new pathways to expand data access, supporting safe data access and use via outcomes-based privacy regulation, and enhancing reporting efficiency, transparency, and accuracy through digital financial reporting.

Also within the report is the idea of creating a new “fair deal” exception in the Copyright Act for AI-generated text and data mining, which the Australian Recording Industry Association (ARIA) and Phonographic Performance Company of Australia (PPCA) say is “ill-considered and contrary to Australia’s best interests.”

In a statement, ARIA and PPCA CEO Annabelle Herd said, “Australia’s existing copyright law is the foundation of the creative industries and the digital economy.

“It currently aligns with global standards and effectively drives innovation and mutually beneficial negotiation without compromising Australian rights and investment.”

Adding that Australia’s existing legal framework currently provides “clarity” that enables licensing negotiations and agreements that “fairly reward creators and give them control” over potential exploitation of their work, Herd continued:

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

“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 and the National Aboriginal and Torres Strait Islander Music Office (NATSIMO) also rejected the report’s proposal of the “fair deal” exception in the Copyright Act for AI-generated text and data mining.

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.

“The Commission may couch this as policy exploration, but their direction is clear,” said APRA Chair, Jenny Morris MNZM OAM.

“They're laying the groundwork to legitimise what they themselves acknowledge is already widespread theft. We’ve witnessed the wholesale ingestion of Australian works by AI companies in the US, where over 30 court cases are currently underway challenging this practice.”

Morris continued, “The Commission’s exploration may seem measured, but the direction is unmistakable.

“They're building a framework for policies that would treat our cultural heritage as free raw material. We call on the Government to reject this direction and support Australia’s creative sector to be at the heart of the success of AI development in this country.”

AMCOS Chair, Jaime Gough, also discussed the economic implications of the proposal. “The Commission risks undermining the very licensing markets that will be crucial for Australian creators as AI becomes more prevalent,” Gough explained.

“They acknowledge that AI companies generate billions in revenue from models trained on copyrighted works, while creators receive nothing. Instead of addressing fair compensation, they're exploring legal exemptions that would lock in this imbalance."

NATSIMO National Director, Leah Flanagan, expressed concern about Indigenous artists and creators. “This interim report exposes a glaring double standard,” Flanagan said.

“In the Commission’s 2022 Aboriginal arts and crafts report, they rightly called for firm action against fake Indigenous art and new cultural rights legislation. They recognised that Indigenous Cultural and Intellectual Property (ICIP) has intrinsic value. Yet now they seem content to allow the digital theft of ICIP that exists in our songs and music.”