Experts warn AI copyright changes could breach Australian constitution and spark huge compensation rights case
Coalition senators, recording industry representatives and constitutional experts have warned that weakening Australian copyright law to let AI firms scrape creative work could raise constitutional questions and lead to large compensation claims. The concern is that giving companies permission to use copyrighted material while reducing creators’ rights might amount to the government acquiring property without providing “just terms”.
The government is considering copyright changes as part of broader AI reforms, but has not published a proposal. Anthropic has suggested an opt-out system, under which material could be scraped unless rights holders use digital protections to object; constitutional law expert Anne Twomey said the legal risk would depend on how any law is drafted, and the attorney general’s department said it was alert to the issue.
In short
- Proposed AI copyright changes may face a constitutional challenge.
- Rights holders could seek compensation if their protections are reduced.
- The government has yet to set out a legislative proposal.
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The case for
Reforming copyright could give AI developers access to a wider range of material for training, supporting innovation and the development of useful services in Australia. An opt-out system could preserve a route for creators to object while avoiding the burden of securing individual licences for vast datasets; the constitutional position would depend on the law’s precise design.
The case against
Allowing companies to use copyrighted work while weakening creators’ control could transfer valuable rights without fair compensation, raising questions under the Constitution’s just-terms protection. Creators and cultural industries may also argue that an opt-out system puts the burden on rights holders to detect uses and protect their work, while enabling AI businesses to benefit from it.
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