Draft Bill on Copyright Introduces Collective Licensing for Works Used by AI

The Government continues to refine the revision of Law No. 28 of 2014 on Copyright (“Copyright Law”) to keep pace with developments in digital technology, particularly the use of artificial intelligence (“AI”) and the use of works on digital platforms. One of the key areas of focus concerns the use of AI and text and data mining (“TDM”) in the creation of copyrighted works.

“The main questions that need to be addressed are: how significant is the human contribution to the creative process? What does the resulting output look like? How can authorship be established? And can copyrighted works be used as AI training data?” explained Achmad Iqbal Taufiq, Junior Legal Analyst at the Directorate General of Intellectual Property (“DJKI”).

In addition, the Draft Bill is intended to provide legal certainty regarding training data through mechanisms involving authorization, licensing, remuneration, opt-out mechanisms, collective licensing, and certain exceptions. It also expands the scope of exploitation of digital works beyond mere physical reproduction, to include activities such as uploading, downloading, streaming, sharing, user-generated content (“UGC”), and over-the-top (“OTT”) services.

“The most important aspect is restructuring and establishing a transparent, accountable, and adaptive copyright governance framework that provides protection without hindering creativity,” he concluded.