ARIA CEO Annabelle Herd emphasized that while the industry is not opposed to AI, the proposed exception would strip artists and rightsholders of their moral and commercial rights, benefiting only major tech companies seeking unrestricted access to Australian works.

There is a particular concern about the potential exploitation of First Nations' cultural works, with industry bodies emphasizing the need for respect, permission, and fair payment.

Industry leaders warn that proposed changes to Australia's copyright law, specifically a new fair dealing exception for AI training, would undermine existing licensing agreements, devalue copyright, and threaten over one million Australian jobs, including those in the creative economy which contributes 6-7% to GDP.

ARIA and PPCA, representing over 200 members, manage licensing and revenue distribution for the Australian music industry, and affirm that current licensing mechanisms are effective, with many AI licensing agreements already in place.

Industry groups strongly oppose the proposed reforms, arguing that creating a new fair dealing exception for AI training would harm the creative sector and weaken intellectual property rights.

Herd urged the Productivity Commission to focus on genuine incentives for AI investment, such as access to capital and energy, rather than rushing to grant unrestricted access to artists' intellectual property.

Similar exceptions in countries like Japan, Singapore, and the EU have failed to deliver the promised investment and innovation, raising concerns about the effectiveness of such policies.

Protecting First Nations' music and culture from exploitation by AI companies is a key concern, with industry advocates asserting these cultural treasures deserve respect, permission, and fair payment.

Herd highlighted that Australia's copyright laws align with global standards and support local innovation, citing existing AI licensing deals with companies like Merlin, ElevenLabs, OpenAI, News Corp, and The Guardian.

The proposal is criticized as prioritizing global tech companies over Australian industries and workers, with Herd calling it a false 'productivity measure' that undermines local economic interests.

Protecting copyright and licensing content is essential for safeguarding Australian culture, jobs, and economic interests amid the rise of AI, and aligning with global standards.

Critics argue that the proposed legislative changes would legalize copyright theft, weaken Australia's copyright framework, and lead to market dominance by foreign tech firms at the expense of local creators.

Existing licensing agreements demonstrate that Australia's current copyright laws are sufficient, and weakening them could harm local artists and open the door for foreign dominance.