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Hotel Licensing Framework Extended To 2028 As Industry Flags Risks

The Hellenic Parliament has approved a fifth legislative package that extends the power of the Deputy Ministry of Tourism to grant operating licenses for hotels and tourism accommodations until December 31, 2028. The measure passed with 25 votes in favor, one against, and 15 abstentions, setting the stage for a prolonged period of regulatory leniency within the industry.

Delayed Licensing And Competitive Disadvantages

Support for the bill came from ten members of the Democratic Rally (DISHY) parliamentary group, along with representatives from DIKO, ELAM, DIAPA, the Ecologists, and independent parliamentarian Eirini Charalambidou. In contrast, independent parliamentarian Kostis Efstatheou voted against the measure, while members from AKEL, DISHY’s Kyriakos Chatzigiannis, and EDEK’s Marinos Sizopoulos abstained.

Critics, including Chatzigiannis, argue that these extensions effectively allow unlicensed operations to persist, thereby creating an uneven competitive environment that undermines the legal tourism sector in Cyprus.

A Call For Regulatory Reform

Kyriakos Chatzigiannis, head of the Commerce Committee and DISHY member, expressed concern that prolonging grace periods for illegal operations fails to address the underlying issues. He emphasized that repeated extensions entrench a system in which up to 850 establishments continue to operate without proper accreditation.

Earlier, the committee proposed a specialized legalization framework for hotel units, but the Deputy Ministry of Tourism rejected this approach in favor of maintaining the extension policy.

Industry Concerns Over Repeated Extensions

Concerns continue to grow among industry observers and legislators. During the parliamentary debate, Chatzigiannis proposed extending the document submission deadline for hotels until December 31, 2026, instead of the current six-month window that coincides with the mid-tourism season.

Kostas Kosta, representing AKEL, criticized previous extensions, noting that a predictable pattern of delays allows non-compliant establishments to continue operating. He also pointed out that the licensed framework expired in November, leaving a regulatory gap in which unaccredited hotels effectively operated outside the system for several months.

Regulatory Ambiguity And The Way Forward

Independent socialist MP Kostis Efstatheou criticized the reliance on administrative extensions, arguing that such measures mask broader regulatory weaknesses. In his view, a functioning system should enforce compliance rather than repeatedly postpone deadlines. He questioned whether granting further extensions aligns with the principles of the rule of law, stressing that meaningful reform requires strict adherence to licensing standards.

The decision to extend the licensing framework until the end of 2028 represents not only an administrative decision but also a broader commentary on the challenges facing the Cypriot hospitality sector. With regulatory ambiguities prolonging unlicensed operations, stakeholders across the industry are calling for stronger enforcement and sustainable reforms to ensure a level playing field.

Copyright Law Struggles To Keep Up With AI Training

Courts Are Still Applying Old Copyright Rules To AI

AI companies train models on enormous amounts of published material, including books, articles and academic research. Whether using that content without authors’ permission violates copyright law remains unresolved.

Much of the debate centres on fair use, which allows copyrighted material to be used without permission in certain circumstances. Courts consider factors such as the purpose of the use, how much material was involved and its impact on the original market.

Anthropic Case Sets An Important Precedent

A major case involving Anthropic and a group of authors provided one of the clearest rulings so far. Judge William Alsup found that using copyrighted books to train AI models was lawful, comparing the process to people reading and studying literature before creating something new.

Anthropic was nevertheless ordered to pay $1.5 billion in a settlement. The penalty concerned books the company had obtained from illegal online libraries rather than the AI training itself.

For AI companies, that distinction could prove significant because it separates studying copyrighted material from directly copying it.

Competition Could Be The Key Issue

A case involving Thomson Reuters and Ross Intelligence offers a different perspective. A court ruled that Ross could not claim fair use after using Reuters’ copyrighted material to develop a competing AI-powered legal research platform.

The decision suggests courts may be less willing to consider AI training fair use when copyrighted content is used to build a product that directly competes with the original.

For authors, an unresolved question is whether AI-generated content should be considered competition for the works used to train these models.

The Law Has Yet To Catch Up

US copyright law predates generative AI by decades, leaving courts to apply old principles to new technology. Questions also remain over copyright protection for AI-generated works. In Thaler v. Perlmutter, a court ruled that material created entirely by AI cannot receive copyright protection.

Major AI companies remain involved in copyright litigation, and different courts could reach different conclusions. For now, there is no universal rule: the legality of AI training will depend on the circumstances of each case and how courts ultimately interpret copyright and fair use.

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