EU Copyright Regime Fails To Keep Pace With AI: New Study Calls For Urgent Reform

EU Copyright Regime Fails To Keep Pace With AI: New Study Calls For Urgent Reform

Introduction

A new study commissioned by the European Parliament has warned that EU copyright law is ill-equipped to deal with AI models that rely on large-scale data training. The report calls for targeted reforms to strengthen legal protections for copyright holders and argues that generative AI systems operate at a “scale and opacity” that existing copyright frameworks were “never designed to address”.

Factual Background

The study highlights a “legal mismatch” between AI training practices and the EU’s current text-and-data mining (TDM) exceptions. Article 4 of the Copyright Digital Single Market Directive provides a TDM exception that allows use of content unless the rights holder has opted out. However, the study argues that this exception was “not designed to accommodate the expressive and synthetic nature of generative AI training”. The report was published by the European Parliament’s Committee on Legal Affairs (JURI).

Procedural Background

The study was conducted amid growing concerns over the use of copyrighted works as training data for generative AI (GenAI) systems. There are a number of key cases working their way through the courts, including a landmark trial in the UK between Getty Images and AI outfit Stability AI.

Issues

1. Adequacy of Current Framework: Whether the current EU copyright framework is adequate to address the challenges posed by generative AI systems.

2. Statutory Remuneration Scheme: Whether a statutory remuneration scheme is needed to close the value gap between creators and developers.

3. Status of AI-Generated Content: What is the uncertain status of AI-generated content and how should it be treated under EU copyright law?

Contentions of Parties

European Parliament's Contentions: The study argues that the current EU copyright framework is inadequate to address the challenges posed by generative AI systems and calls for targeted reforms to strengthen legal protections for copyright holders.

Industry Perspectives: Ben Maling, a partner at IP firm EIP in London, described the study as “blistering”, noting its focus on the adequacy of the EU TDM exception in the Copyright Digital Single Market Directive.

Reasoning & Analysis

The study argues that the current TDM exception in the EU Copyright Directive is inadequate to address the challenges posed by generative AI systems. It notes that the exception was designed for more traditional forms of text and data mining, rather than the large-scale data training used in generative AI. The report emphasizes the need for clarity around hybrid authorship and the status of AI-generated content.

Final Outcome

The study calls for targeted reforms to strengthen legal protections for copyright holders and argues that a statutory remuneration scheme is needed to close the value gap between creators and developers. It also emphasizes the need for clarity around hybrid authorship and the status of AI-generated content.

Implications

The study has significant implications for the development of AI systems in the EU and highlights the need for policymakers to address the challenges posed by generative AI. It also notes that the UK should consider the findings of the report when developing its own TDM plans. Moreover, without timely reform, the EU risks legal uncertainty, market concentration, and “cultural homogenisation”.