The International Federation of the Phonographic Industry (IFPI) has warned the Australian government that weakening copyright protections to accommodate AI companies would be "ridiculous and dangerous." The global peak body for the music recording industry expressed concern that Australia might adopt licensing standards that other nations have already rejected, potentially creating a "safe harbour" that allows AI models to train on music from around the world without compensation.
Prime Minister Anthony Albanese previously promised the strongest possible protections for creators, stating it would be "theft" if artists were not paid for their work. However, the Labor government is currently considering a suite of policy overhauls regarding AI, including data centers and online safety. This comes as several large AI companies have requested changes to copyright laws to facilitate training on Australian material, arguing that existing laws make licensing too difficult.
Anthropic has suggested an "opt-out" model that would allow the company to scrape content unless rights holders explicitly signal an objection. While large AI firms claim they require legal certainty regarding copyright before making significant investments in Australia, IFPI CEO Victoria Oakley argued that such concessions are not necessary for innovation. Oakley noted that music labels have already successfully signed dozens of licensing deals with smaller AI companies globally.
"I just don’t think it’s true that you will only get investment or growth, or be seen as pro-innovation, if you entirely give in to the demands of AI companies," Oakley told Guardian Australia. She warned that if Australia caves to these demands, it could trigger a contagion of copyright relaxation that affects music and culture everywhere.
In response to inquiries regarding why AI companies have not reached streaming-style deals, OpenAI told a parliamentary committee that Spotify's business model is different because it primarily transmits un-transformed copyrighted content. Despite these claims, the IFPI maintains that licensing is entirely possible and warned that Australia risks significant reputational damage if it prioritizes AI company demands over its own creative industries.
