Tech

AI has upended US copyright laws. Upcoming proposals could change the rules.

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Generative AI has seen an explosion of investment since the launch of ChatGPT last year SOPA Images/Getty Images
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The way technology companies scrape and use copyrighted material to train generative AI tools could be in for a significant change.

The US Copyright Office wrote in a late February letter to Congress that it intends to have finalized by the end of this year a full report on generative AI with "recommendations as to any appropriate legislative or regulatory action" regarding AI. The report will be published in "several sections," according to a Tuesday blog post from the USCO, all of which will "analyze the impact of AI on copyright."

The first section will be published this spring and focus on "the use of AI to digitally replicate human artists' appearances, voices, or other aspects of their identities." The second section will be released in the summer and "address the copyrightability of works incorporating AI-generated material."

The USCO will then release sections on two additional areas of concern that have proven to be most contentious: the "training of AI models on copyrighted works" and "any licensing considerations and liability issues" for AI models that produce copyrighted material. Both aspects invoke if and how creators and rights holders should be compensated for content used to train large language models, or LLMs, that make generative AI tools function.

By the time it releases these recommendations, the USCO will have been considering how to act on generative AI for roughly two years. It has also been weighing for months possible changes to US Copyright laws and rules, which make no specific mention of generative AI or related use cases.

The USCO opened a public comment period last summer to seek input on generative AI and its various implications on creative works and copyright. It was extended given the level of interest and eventually the Office received nearly 11,000 comments from people in every state and 66 other countries, along with every major tech company, many large investment firms, authors, actors, video game creators, professional sports leagues, movie studios, and "even a class of middle school students," according to the letter to Congress.

President Joe Biden's administration has become more outspoken on generative AI. The administration released an executive order on AI with a number of directives to federal offices, and Biden's AI advisor Ben Buchanan last month told Business Insider the White House wants to see that "people who create meaningful content are appropriately compensated for it."

Although generative AI has been around for years, the explosive popularity of OpenAI's ChatGPT tool launched in late 2022 led to a greater public understanding of how generative AI models are developed through mass scraping every bit of data on the web. Regardless of ownership, scraped content is almost never licensed or paid for, and it's next to impossible for creators and owners to prevent their work from becoming part of massive data sets used for training.

Several tech companies and investors involved in AI, including Meta and Andreessen Horowitz, told the USCO last year that being required to pay for the huge amount of copyrighted content AI models require would be so expensive that it would make the development of the technology unfeasible.

Warring interests and goals have opened up a growing fight between content creators and tech companies building generative AI. At least six active federal lawsuits were filed last year, where creators and rights holders, from book authors to The New York Times, accuse tech companies of wrongfully using their work. Generally, the tech companies claim they are within their legal rights to use any web data they can find, copyrighted or not, arguing it falls under copyright law's "fair use" doctrine. Creators and owners largely disagree.

Are you a tech employee or someone with a tip or insight to share? Contact Kali Hays at khays@insider.com or on secure messaging app Signal at 949-280-0267. Reach out using a non-work device.

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Kali Hays was a Tech Correspondent at Business Insider covering the major social media platforms like Meta, Twitter, and Snap. Her reporting covered major changes and the internal culture at these companies, the founders and executives who run them, and business developments and products. Hays also wrote frequently about AI and emerging trends and shifts in the tech industry overall. Her work has been widely cited, including by the FTC in an investigation into Elon Musk’s takeover of Twitter, and she has appeared as an expert on NBC, CBS, the BBC and elsewhere. Her exclusive reporting and scoops include:Meta's Facebook Messenger hit with layoffs amid ongoing 'efficiency' pushLayoff angst looms over Meta employees as they face tough performance reviews and ongoing reorgsMeta aiming to reveal and demo Orion, its first true AR glasses, at its fall developer conferenceMeta's Responsible AI team shrinks amid layoffs and restructuring, even as the company goes all-in on AIMeta updates RTO policy with stricter mandate, saying workers may lose their jobs if they don't show up 3 days a weekLeaked documents from Mark Zuckerberg and Priscilla Chan's charity include a tacit admission that their biggest bet on education reform was a flop'He is in war time': Mark Zuckerberg's desperate, last-ditch attempt to remake himself — and MetaOpenAI is expected to release a 'materially better' GPT-5 for its chatbot mid-year, sources sayOpenAI's employees were given 2 explanations for why Sam Altman was fired. They're unconvinced and furious.AI is killing the grand bargain at the heart of the web. 'We're in a different world.'Jack Dorsey warns Block employees of coming job cuts: 'The growth of our company has far outpaced the growth of our business.'Elon Musk is considering taking X out of Europe amid EU compliance investigationLeak: Elon Musk said he wants X to be a dating app, too, in an all-hands meeting on the anniversary of his Twitter takeoverLinda Yaccarino, Elon Musk, and the most difficult CEO job on earthElon Musk's Twitter races to build a live video service as it woos right-wing media personalitiesElon Musk is moving forward with a new generative-AI project at Twitter after purchasing thousands of GPUsSnap begins a new round of layoffs with staffers expecting more next weekEvan Spiegel proclaims 'social media is dead' in leaked memo, predicts Snap is about to 'transcend' the smartphoneSnap workers say they're being closely 'tracked' to enforce compliance with the RTO mandateHow Snap misread big threats from TikTok and Apple and lost its chance at becoming an advertising giant