{"id":946715,"date":"2026-10-30T19:18:20","date_gmt":"2026-10-30T19:18:20","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/946715\/"},"modified":"2026-10-30T19:18:20","modified_gmt":"2026-10-30T19:18:20","slug":"experts-warn-ai-copyright-changes-could-breach-australian-constitution-and-spark-huge-compensation-rights-case-australian-law","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/946715\/","title":{"rendered":"Experts warn AI copyright changes could breach Australian constitution and spark huge compensation rights case | Australian law"},"content":{"rendered":"<p class=\"dcr-1s160rg\">Altering copyright law to allow AI companies to scrape music, books and journalism could trigger a constitutional breach, Coalition senators and the recording industry have warned, as they raise new fears it could open Australia to massive legal action and compensation claims from rights holders worldwide.<\/p>\n<p class=\"dcr-1s160rg\">The attorney general\u2019s department admitted it was \u201cextremely alive\u201d to the issue, and Australia\u2019s leading constitutional expert, Anne Twomey, agreed there was \u201cpotentially\u201d a concern \u2013 depending how legislation was drafted \u2013 that granting AI companies permission to scrape copyrighted material from the internet could amount to an acquisition of property by the government.<\/p>\n<p class=\"dcr-1s160rg\">In a simmering debate centred on the same legal point as <a href=\"https:\/\/www.theguardian.com\/film\/2022\/mar\/19\/its-the-vibe-25-years-on-how-the-castle-became-an-australian-classic\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">the movie The Castle<\/a>, the question of acquiring property \u201con just terms\u201d is emerging as a key concern amid furious lobbying from tech companies and rights holders ahead of a looming federal government announcement on AI.<\/p>\n<p class=\"dcr-1s160rg\">\u201cWe could be liable for \u2018just terms\u2019 compensation for acquiring that property for every rights holder on Earth,\u201d Ross Cadell, a Nationals senator, told Guardian Australia.<\/p>\n<p class=\"dcr-1s160rg\">Michaelia Cash, the shadow attorney general, said the government should not \u201csell out Australian creators and rights holders in the rush to entice AI investment\u201d.<\/p>\n<p class=\"dcr-1s160rg\">Labor is mulling copyright changes in a suite of reforms around AI, including datacentres, online safety, workforce, energy and the economy. While the prime minister, Anthony Albanese, has <a href=\"https:\/\/www.theguardian.com\/technology\/2026\/jul\/15\/office-of-ai-artificial-intelligence-copyright-australia-government\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">promised \u201cthe strongest possible protection\u201d<\/a>, warning it would be \u201ctheft\u201d if creatives weren\u2019t paid for their work, creative industries are alarmed that AI companies have requested a weakening of copyright law to train on Australian material.<\/p>\n<p class=\"dcr-1s160rg\">Some AI companies have rejected making licensing agreements under existing copyright law, saying it was too difficult. Anthropic <a href=\"https:\/\/www.theguardian.com\/technology\/2026\/oct\/02\/anthropic-ai-opt-out-australia-copyright-abc-cannibalisation-of-news\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">suggested an \u201copt-out\u201d model<\/a> which would allow it to scrape content unless a rightholder deployed digital protections signaling an objection.<\/p>\n<p class=\"dcr-1s160rg\">A fresh concern being aired by sceptics and creatives is that any weakening of copyright to benefit AI could represent a breach of section 51 of the constitution, which allows the commonwealth to make laws about \u201cthe acquisition of property on just terms\u201d.<\/p>\n<p class=\"dcr-1s160rg\">\u201cIf they go ahead with an opt-out model, it does raise a real question of whether the government is acquiring the intellectual property rights of others,\u201d said Cadell, a member of <a href=\"https:\/\/www.theguardian.com\/australia-news\/2026\/oct\/06\/openai-must-explain-action-taken-to-stop-ai-hacking-australians-private-data-chair-of-federal-inquiry-says\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">the federal parliamentary committee on AI<\/a>.<\/p>\n<p class=\"dcr-1s160rg\">\u201cHow we support property rights is core to this.\u201d<\/p>\n<p class=\"dcr-1s160rg\">A spokesperson for the attorney general, Michelle Rowland, said the government was \u201ccommitted to supporting\u201d creatives and pledged that \u201cany future copyright changes deliver meaningful control and fair compensation\u201d.<\/p>\n<p class=\"dcr-1s160rg\">Anne Twomey, professor emerita of law at the University of Sydney, said the issue was exceedingly complex and noted no legislative proposal had been aired. She said numerous cases had come before the high court relating to copyright and acquisition of property, including about video games, cigarette plain packaging and cassette tapes, with varying outcomes.<\/p>\n<p class=\"dcr-1s160rg\">Twomey expected the federal government would be hyperaware of such concerns, but said granting a new right to AI companies to use copyrighted material and diminishing the rights of copyright holders could \u201cpotentially\u201d trigger constitutional issues.<\/p>\n<p class=\"dcr-1s160rg\">\u201cThe high court has recognised a number of exceptions to section 51 \u2026 One would want to be quite confident before enacting the legislation about whether or not section 51 would apply,\u201d Twomey told Guardian Australia.<\/p>\n<p class=\"dcr-1s160rg\">She said any change allowing Australia to host AI companies training on international data could potentially create grounds for global rights holders to take legal action here.<\/p>\n<p class=\"dcr-1s160rg\">Cadell told Guardian Australia he worried about such a development opening the federal government to liability for \u201cthe biggest compensation rights case in history\u201d.<\/p>\n<p><a data-ignore=\"global-link-styling\" href=\"#EmailSignup-skip-link-17\" class=\"dcr-76akua\">skip past newsletter promotion<\/a>Free newsletter |When needed<\/p>\n<p class=\"dcr-vf9hps\">Sign up to Breaking News Australia<\/p>\n<p class=\"dcr-djbwnz\">Get the most important news as it breaks<\/p>\n<p><img src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/10\/1793387900_267_2998.jpg\" alt=\"\" loading=\"lazy\" decoding=\"async\" class=\"dcr-gx9601\"\/><\/p>\n<p id=\"EmailSignup-skip-link-17\" tabindex=\"0\" aria-label=\"after newsletter promotion\" role=\"note\" class=\"dcr-76akua\">after newsletter promotion<\/p>\n<p class=\"dcr-1s160rg\">Cadell raised his concerns about the constitution in a committee hearing with the attorney general\u2019s department on Friday, in which officials said they were conscious of those issues.<\/p>\n<p class=\"dcr-1s160rg\">Officials did not directly answer when Cadell asked about international implications and liability for compensation to foreign rights holders.<\/p>\n<p class=\"dcr-1s160rg\">Annabelle Herd, the CEO of the Australian Recording Industry Association, claimed any proposal to allow AI companies to scrape data was \u201cclearly an acquisition of property\u201d.<\/p>\n<p class=\"dcr-1s160rg\">\u201cIt\u2019s hard to imagine what kind of compensation would make up for the fact that they\u2019re basically taking our right \u2026 and trading it away to the AI companies to then monetise themselves, and that appears to be a clear path to a constitutional challenge.\u201d<\/p>\n<p class=\"dcr-1s160rg\">Chris Maund, CEO of Mushroom Records, said current copyright law was working and that AI companies should use existing licensing arrangements, noting companies such as Spotify were already making AI-related deals.<\/p>\n<p class=\"dcr-1s160rg\">He also raised concern about international ramifications were Australia to change copyright law, saying it would not only apply to Australian artists and copyright owners.<\/p>\n<p class=\"dcr-1s160rg\">\u201cThe AI company could do their training here in Australia and circumvent the copyright laws that apply outside of Australia, and that\u2019s why the international creative industries are watching this very closely,\u201d he said.<\/p>\n<p class=\"dcr-1s160rg\">Maund said international rights holder groups had been urging Labor not to weaken copyright law. Guardian Australia has provided submissions to the Joint Select Committee as a member of Australia\u2019s wider rights holder community.<\/p>\n<p class=\"dcr-1s160rg\">\u201cThe Australian government has been really great to the music industry, particularly Prime Minister Albanese and Tony Burke. They\u2019ve set up Creative Music Australia, which companies like us and our artists have done very well out of, but it feels like they\u2019re out of step with artists and copyright owners on this point,\u201d he said.<\/p>\n<p class=\"dcr-1s160rg\">Cash said the Coalition welcomed the benefits of AI and wanted investment, but also raised the constitutional concern.<\/p>\n<p class=\"dcr-1s160rg\">\u201cThat is the prime minister\u2019s own test, and the government should be held to it,\u201d she said of compensation to rights holders.<\/p>\n<p class=\"dcr-1s160rg\">\u201cThe constitutional question of property rights and their acquisition on just terms is also a live issue we will be examining depending on what the government puts forward.\u201d<\/p>\n<p class=\"dcr-1s160rg\">Cadell said while AI had benefits, he worried about its risks.<\/p>\n<p class=\"dcr-1s160rg\">\u201cThere\u2019s lots of talk about what the benefits may be and what may happen. But if we take these rights away, we know what will happen,\u201d Cadell said.<\/p>\n<p class=\"dcr-1s160rg\">\u201cI don\u2019t want to hurt people for a \u2018may\u2019.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Altering copyright law to allow AI companies to scrape music, books and journalism could trigger a constitutional breach,&hellip;\n","protected":false},"author":2,"featured_media":946716,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[64,63,134],"class_list":["post-946715","post","type-post","status-publish","format-standard","has-post-thumbnail","category-entertainment","tag-au","tag-australia","tag-entertainment"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/946715","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=946715"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/946715\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/946716"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=946715"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=946715"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=946715"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}