ARIA has welcomed the Productivity Commission’s findings after the unveiling of the Harnessing Data and Digital Technology final report.
Earlier this year, the Productivity Commission – the federal government’s independent research and advisory body – released an interim report called Harnessing Data and Digital Technology. In the report, the Productivity Commission presented the government with recommendations focused on four potential policy reform areas.
Those reform areas included 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 was the idea of creating a new “fair deal” exception in the Copyright Act for AI-generated text and data mining, which, in August, ARIA described as “ill-considered and contrary to Australia’s best interests.”
Now, the Productivity Commission confirmed that there is no current justification for overhauling Australia’s copyright laws or changing regulations to facilitate the licensing of copyrighted material for artificial intelligence training. The Commission also stated that licensing markets are continually evolving for AI training using copyright material.
The report reads: “To date, most licensing agreements have been for high-value works with established copyright holders, such as news media corporations and large book publishers. The Australian Government should allow these licensing markets to develop without interference.”
The report also concluded that “No changes to Australian law are required to facilitate the voluntary licensing of category 2 materials, which should be allowed to continue to develop.”
ARIA and PPCA Chief Executive Officer Annabelle Herd has welcomed the findings, saying that they “reinforce” what local musicians and rights holders have argued throughout the year: “Our copyright system is robust, fit for purpose, and should be allowed to do its job in protecting the value of Australian culture.”
Herd continued, “This report clearly affirms that Australia does not need new copyright carve-outs or regulatory shortcuts to enable artificial intelligence. Importantly, it also ensures that creators retain agency over how their work is used, while still enabling innovation to proceed at scale.”
Herd added that the Productivity Commission highlighted that voluntary licensing offers AI developers “certainty and access,” as well as supporting “the continued creation of Australian music, stories and culture.”
“That balance is essential,” Herd said. “Rather than a barrier, Copyright is the framework that allows innovation and creativity to coexist. We are thrilled to see that recognised.”
Herd concluded, “The recorded music industry is ready and willing to work collaboratively with AI companies. We are well-established, experienced licensors and can efficiently license the music datasets needed for AI innovation.
“There are already many examples of major music licensing deals announced to date, which include mechanisms for artists to protect the use of their name, image, likeness and voice, and appropriate guardrails on permitted AI uses. We look forward to getting to work.”
