Friday, April 07, 2023

27th Annual BTLJ-BCLT Symposium: From the DMCA to the DSA: Shira Perlmutter, Register of Copyrights, Keynote on emerging tech

Shira Perlmutter

AI detection and AI generation of content: CO has role to play in applications for registration and as advisors to Congress/exec branch on © law and policy.

Use of tech measures to detect works online: we published a long report on 512 concluding that it has become unbalanced and should be updated, including definitions for standard technical measures (STMs). Service providers have an obligation to accommodate and not interfere w/STMs; they hadn’t yet been figured out yet and providers shouldn’t have to use them but should also not interfere w/their use. 512(i) provided that they had to be developed in a fair, multistakeholder process and had to be available fairly and w/o undue burden on providers. But not a single tech has been designated as an STM; we could make the vision a reality. [Ah yes, get the nerds on it.] We conducted a public study on STMs and also panels on voluntary tech measures. We recommended three changes to the statute: clarifying that the terms “broad consensus” and “multi-industry” require substantial consensus and not unanimity, and only w/r/t industries in question. Replace “developed by a broad consensus” w/ “designated by a broad consensus” even if they were initially developed by a narrow group. Set out factors for determining whether there were substantial costs or burdens on service providers. We didn’t recommend gov’t designation process or repealing 512(i) entirely. Given complexities of evolving tech, weren’t convinced gov’t process would work, but an improved consensus-based framework could play a role in curbing infringement, but still an open question about getting everyone to table.

Voluntary measures received 6000 public comments. No real surprises. Diversity of online marketplace has generated increasingly wide variety, precluding one size fits all. Effective tech measures share: inclusivity; collaboration; communication; and transparency. Many participants expressed frustration when these elements were missing. Future initiatives would benefit from ensuring these attributes. As in EU discussions, other areas of divergence related to resources and access—resource intensive measures remain problematic for small rightsowners and small services. Small service providers, including startups, don’t have capital to invest in expensive technical measures. But others respond that limits on size and resources shouldn’t excuse putting in place protections if the platform is distributing content to the public. [Sadly, they don’t mean “if the platform is distributing infringing content.”] Access was also controversial w/individual rights holders who were frustrated at not being included in discussions; but there is also a risk of intentional or unintentional misuse.

NFTs: we’re conducting a joint study w/PTO on IP issues. Participants in roundtable didn’t ask for statutory change specific to ©; automated royalties for token resale were exciting. But unclear if it’s enforceable downstream particularly if it moves b/t markets. And a purported transfer of © can be difficult if there are off-chain terms and conditions. Sending a takedown notice to a marketplace can block sale, but doesn’t get rid of the actual putatively infringing content. And there are jurisdictional challenges and challenges in identifying source of content.

Current hottest area is AI. Does Act restrict authorship to humans? Fed Cir said inventors had to be human; Thaler is arguing that © should recognize AI authors. We don’t think we acted arbitrarily and capriciously in so holding. What about works produced through a combination of human and machine? What type of human contribution is enough? Comic book case: we registered the work based on an application identifying a single human author that didn’t disclose use of Midjourney. When registrant claimed publicly that it was AI-generated, we asked for more information, and determined that, b/c of the way the tech works, the individual images lacked sufficient human authorship, but issued a more limited registration that covered the human-authored elements: text and selection/coordination/arrangement of the images. Given the increasing number of applications for AI works, additional guidance was needed, so we issued a clarifying statement. Our goal was to help people avoid problems w/validity of registration. Affirms the human authorship requirement and instructs applicants of duty to disclose inclusion of significant AI generated content and provide brief explanation of human author’s contributions. Further questions will be addressed on a case by case basis since new hypotheticals keep coming up. This is not the end of our guidance.

How do we distinguish b/t use of AI as tool, like Photoshop, and AI-generated content? Continued work!

AI datasets trained on © images scraped from websites: is that ok? Getty has sued Stability AI in Delaware and UK alleging that it scraped 12 million images to train Stable Diffusion; also a proposed class action. Key question is whether exceptions apply—text and data mining exceptions in many countries, and fair use in US. Result will likely depend on nature of output and effect on market; courts may view ingestion for research differently than ingestion for producing content that competes in the market. Spectrum: output is substantially similar; output is similar style; output appeals to same audience—courts may treat differently. Who would be held responsible for any infringement? Owner of computer, programmer, prompter?

We’re not done even if we clarify existing law: need to consider whether existing law should be changed. Would it promote progress, as Thaler says, to grant rights in AI generated content? What about the fact that the Clause specifies granting rights to Authors as the means to promote progress? It’s hard to incentivize a machine; do we need to incentivize the machine’s owners more than they already are? Can “authors” include machines? Can some other constitutional clause form the basis for sui generis rights? To the extent that fair use or another exception applies, should there be accommodation for human creators of the works, if not authorization then attribution or remuneration? Certain services have established voluntary remuneration of some kind. Questions are always easier than answers, but we’ll be looking at all of these. Launched broader AI initiative to address scope of © and also legal status/implications of ingesting © works in training AI, holding listening sessions with creators, lawyers, technologists. Will hold informational webinars over summer and publish notice of inquiry afterwards intended to inform a report/series of reports analyzing the issues.

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