Why is a copyright exception for AI training considered a risk to our business model?

A broad Text and Data Mining (TDM) exception is unenforceable because AI operators treat training data as trade secrets, preventing any meaningful audit. Historical data shows that failing to protect intellectual property led to a 50% decline in global recorded music revenue between 1999 and 2014.

Can we rely on 'opt-out' tools to protect our proprietary content from being scraped?

Opt-out mechanisms are technically ineffective due to platform control over web-crawlers and the inability to manage downstream data use. Relying on these tools jeopardizes the economic stability of creative sectors, such as the UK publishing industry which contributes £6.7 billion annually.

What is the most effective way to monetize our data in the AI era?

Microeconomic reform should focus on strengthening licensing frameworks and utilizing collecting societies rather than granting free access to AI developers. This approach is essential for high-value segments like the Australian healthcare AI training dataset market, which is projected to reach AU$45 million by 2030.

Is the projected economic growth from AI enough to justify relaxing copyright laws?

The £1 trillion in speculative IT-related benefits to the UK economy by 2025 does not justify the certain erosion of existing creative industries. AI training is not a 'non-expressive' use; it creates outputs that directly compete with original human creators, undermining the commercial viability of primary content production.

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SUBMISSION on the Interim Report of the “Harnessing data and digital technology” inquiry: Promoting microeconomic reform for a sustainable AI ecosystem

A TDM exception is a short-term 'sugar hit' that risks devaluing creative content and undermining emerging licensing markets.

David Kennedy · Venture Insights12 September 2025Period: September 202512 min read

£1 trillion↑

Speculative IT-related benefits to the UK economy by 2025 from AI advancement

£6.7 billion→

Annual contribution of the Publishers Association to the UK economy

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Abstract

The Productivity Commission's Interim Report on "Harnessing data and digital technology" floated a proposal to create a Text and Data Mining (TDM) exception to copyright law to fuel AI development.

Key Takeaways

Venture Insights argues that a Text and Data Mining (TDM) exception to copyright law is both impracticable to enforce and undesirable for the economy.
AI operator transparency is non-existent, as companies treat training data as trade secrets, making any limited exception impossible to audit.
The submission highlights a history of resistance by AI platforms, citing lawsuits from The New York Times, Getty Images, and the Authors Guild.

SUBMISSION on the Interim Report of the “Harnessing data and digital technology” inquiry: Promoting microeconomic reform for a sustainable AI ecosystem

Abstract

Key Takeaways

What's Inside

Introduction

The impracticability of a TDM exception

The undesirability of a TDM exception

Supporting market development is the answer

Other players may have a role

Frequently Asked Questions

Abstract

Key Takeaways

What's Inside

Introduction

The impracticability of a TDM exception

The undesirability of a TDM exception

Supporting market development is the answer

Other players may have a role

Frequently Asked Questions

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