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EU Parliament Enacts Comprehensive Copyright Safeguards For AI Systems

Robust Legal Framework For AI And Copyright

Members of the European Parliament approved recommendations on artificial intelligence and copyright by a vote of 460 to 71 with 88 abstentions. The resolution states that EU copyright law applies to generative AI systems operating in the European Union.

The recommendations say AI systems should not use copyrighted material without authorization or compensation.

Fair Remuneration And Transparency Requirements

Lawmakers emphasized that any use of protected material by AI must be fairly remunerated, a measure aimed at safeguarding the EU’s creative industries, which currently account for 6.9% of the bloc’s GDP. The recommendations require full transparency, obliging AI providers to deliver an itemized list of each copyrighted work utilized during system training. Such measures are intended to secure monetary compensation for creators while ensuring legal certainty for AI developers.

Comprehensive Documentation And Legal Accountability

The new framework stipulates that detailed records of crawling activities for both inference and retrieval-augmented generation must be maintained. Failure to document these processes could precipitate copyright infringement claims, with courts potentially mandating that AI service providers cover all associated legal expenses. The legislative initiative also calls for the formation of a novel licensing market tailored for copyrighted material, which would include voluntary collective agreements designed to benefit individual creators and small businesses.

Protection For The News Media And Creator Rights

The proposal also addresses the use of news media content by AI systems. Lawmakers said publishers and content creators should receive compensation if their material is used for AI training. Media organizations would retain the right to exclude their content from training datasets. An opt-out mechanism could be overseen by the European Union Intellectual Property Office.

Guidance And Future Implications

Axel Voss, Rapporteur for the Committee on Legal Affairs, underscored the need for explicit rules governing the use of copyrighted content in AI training. “Legal certainty would enable AI developers to understand which content can be used and how licenses can be obtained,” Voss stated. “Conversely, rightsholders are assured protection against unauthorized exploitation and assured remuneration. These provisions are indispensable if we are to promote AI development in Europe while safeguarding our creative industries.”

This strategic move by EU lawmakers could set a global precedent, positioning the union as a leader in balancing technological innovation with stringent copyright protection. As artificial intelligence continues to evolve, this framework is expected to influence international norms and best practices in the digital age.

Meta’s $18 Billion Settlement Limits State Claims Over Children’s Data

Meta’s $18 billion settlement with attorneys general from 29 U.S. states includes a provision limiting future state claims over the company’s use of children’s data for age-assurance systems.

Under the agreement, Meta must develop, train and begin testing a system to identify users under 13 within a year of the settlement taking effect. The company already uses AI-based age-detection tools, although the agreement does not require the new system to use AI.

States Agree To Limits On Future Claims

The Children’s Online Privacy Protection Act (COPPA) generally restricts the collection and retention of personal data from children under 13. Under the settlement, the 29 state attorneys general agreed not to bring past, present or future claims under COPPA or similar state laws over the specified use of children’s data.

Meta will not be permitted to use information from users under 13 for advertising, marketing or algorithmic optimisation.

Federal Enforcement Remains Unclear

COPPA is primarily enforced by the Federal Trade Commission, which is not a party to the agreement. That leaves open the possibility of separate federal action over how Meta collects or uses children’s data.

Another issue is whether Meta can keep age-assurance data isolated from its other systems. An independent auditor will monitor compliance, but the settlement does not fully specify what data Meta can retain for training, how long it can be stored or whether derived insights can be used elsewhere.

Legal Risks Remain

Joshua Wurtzel, a partner at Schlam Stone & Dolan, said states could still pursue claims if Meta uses the data outside the settlement’s limits. Such cases could depend on how those limits are interpreted.

Peter Jackson, a data and intellectual property attorney at Greenberg Glusker, said the provision could “disincentivize future enforcement actions.”

The agreement gives Meta greater legal certainty around using children’s data for age assurance, but questions remain over federal enforcement, data retention and secondary use.

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