Australian creatives are pushing to shore up copyright protections as the tech industry calls for a carve-out in exchange for datacentre investment. The stoush has exposed splits within the Albanese government about how to respond to artificial intelligence.
Creatives as 'victims of crime'
When Anna Funder stood before journalists at Parliament House this month, she presented herself not only as a writer but also a 'victim of crime'. The Stasiland author used the analogy to illustrate how technology companies have flagrantly 'hoovered up' her literary works for their own profit. Funder highlighted the importance of copyright laws in protecting Australians whose livelihoods depend on original content.
Authors, artists, musicians and media organisations were assured last year that those laws wouldn't be watered down when the federal government ruled out granting a legal exemption for AI companies to mine content to train large language models such as ChatGPT, Gemini and Claude. However, continual lobbying from tech giants and a whistleblower's tipoff to independent senator David Pocock have ignited fears that the government might go back on its word.
Labor ministers divided
Prime Minister Anthony Albanese is expected to deliver a major speech on Wednesday about the government's plans for regulating AI. Senior Labor sources say ministers have been split on the path forward for copyright reform. Industry Minister Tim Ayres and Assistant Minister for the Digital Economy Andrew Charlton are most enthusiastic about attracting AI investment, while Attorney General Michelle Rowland and Arts Minister Tony Burke are determined to protect creatives' rights.
Albanese sought to reassure creatives last week, pointing to the news bargaining incentive as evidence of Labor's 'strong track record' in protecting local content producers. 'These are complex issues, we're working it through with the sector,' he said.
The 'ultimate dirty deal'
The government has insisted it has no plans to grant a 'text and data mining' exemption that would allow AI companies to scrape content without infringing copyright. However, Tech Council of Australia chair and Atlassian co-founder Scott Farquhar directly appealed for such a carve-out last July, claiming it could 'unlock billions of dollars in foreign investment'. The Productivity Commission floated the idea in a report, provoking a backlash that led Rowland to kill off the proposal in October.
In late June, Pocock's office was tipped off about an industry push for a copyright carve-out in exchange for at least $50 billion in datacentre investment and contributions to a fund for creatives supposedly worth $350 million a year. Pocock described the proposal as the 'ultimate dirty deal' and demanded Labor rule it out. 'To sell out Australian creatives would be a reckless act,' he told the Senate on 1 July.
The federal government flatly rejected Pocock's claims as inaccurate while repeating it had no plans to weaken copyright laws. On Tuesday, the Australian Financial Review reported that Anthropic was pushing for a deal in line with what Pocock alleged as part of a plan to make Australia its second home. Anthropic's CEO Dario Amodei signed a memorandum of understanding with the government after meeting Albanese in April.
Leverage in a global arms race
Australia is viewed as an ideal host for datacentres as a safe, politically stable nation with access to land and renewable power. But multinational tech giants are prepared to invest elsewhere. Former industry minister Ed Husic, now on the backbench, says the government has leverage and should not bow to demands. 'Keeping with the best traditions of late-night TV infomercials, we're being pressured by US tech that if we don't sign up to these datacentre deals now, we'll miss out on a huge opportunity,' Husic said. 'Impulse purchases are often regretted.'
The government has set 'expectations' for datacentre developers, including securing additional green energy and covering transmission costs. Husic wants further restrictions, including banning new centres on land set aside for housing. Other Labor MPs disagree; one says opposing datacentres is akin to 'nimbyism' and argues for consistent rules across the country.
Public opinion and the path forward
Polling shows Australians are split on AI. The Guardian Essential poll in May found 36% of voters think AI carries more risk than opportunity, while 41% see risk and opportunity about the same. Only 22% think AI has more opportunity than risk.
Assistant Minister Andrew Charlton is spearheading the government's AI plans. The Parramatta MP has sought to position himself as a centrist in the datacentre debate. In a 10 June speech, he argued that Australia should not 'blindly accept or reject' the investment but should 'actively set the terms on which that investment occurs, consistent with our values'.
Creatives have made clear that trading away copyright protections must not be on the table. Greens communications spokesperson Sarah Hanson-Young, chairing a parliamentary inquiry into datacentres, said: 'The government has said previously that they would not allow a text and data mining exemption. But anything that quacks like that, moves like that, would be a betrayal.'
