Copyright Kills Competition

We're taking part in Copyright Week, a series of actions and discussions supporting key principles that should guide copyright policy. Every day this week, various groups are taking on different elements of copyright law and policy, and addressing what's at stake, and what we need to do to make sure that copyright promotes creativity and innovation.

Copyright owners increasingly claim more draconian copyright law and policy will fight back against big tech companies. In reality, copyright gives the most powerful companies even more control over creators and competitors. Today’s copyright policy concentrates power among a handful of corporate gatekeepers—at everyone else’s expense. We need a system that supports grassroots innovation and emerging creators by lowering barriers to entry—ultimately offering all of us a wider variety of choices.

Pro-monopoly regulation through copyright won’t provide any meaningful economic support for vulnerable artists and creators. Because of the imbalance in bargaining power between creators and publishing gatekeepers, trying to help creators by giving them new rights under copyright law is like trying to help a bullied kid by giving them more lunch money for the bully to take.

Entertainment companies’ historical practices bear out this concern. For example, in the late-2000’s to mid-2010’s, music publishers and recording companies struck multimillion-dollar direct licensing deals with music streaming companies and video sharing platforms. Google reportedly paid more than $400 million to a single music label, and Spotify gave the major record labels a combined 18 percent ownership interest in its now- $100 billion company. Yet music labels and publishers frequently fail to share these payments with artists, and artists rarely benefit from these equity arrangements. There’s no reason to think that these same companies would treat their artists more fairly now.

AI Training

In the AI era, copyright may seem like a good way to prevent big tech from profiting from AI at individual creators’ expense—it’s not. In fact, the opposite is true. Developing a large language model requires developers to train the model on millions of works. Requiring developers to license enough AI training data to build a large language model would  limit competition to all but the largest corporations—those that either have their own trove of training data or can afford to strike a deal with one that does. This would result in all the usual harms of limited competition, like higher costs, worse service, and heightened security risks. New, beneficial AI tools that allow people to express themselves or access information.

For giant tech companies that can afford to pay, pricey licensing deals offer a way to lock in their dominant positions in the generative AI market by creating prohibitive barriers to entry.

Legacy gatekeepers have already used copyright to stifle access to information and the creation of new tools for understanding it. Consider, for example, Thomson Reuters v. Ross Intelligence, the first of many copyright lawsuits over the use of works train AI. ROSS Intelligence was a legal research startup that built an AI-based tool to compete with ubiquitous legal research platforms like Lexis and Thomson Reuters’ Westlaw. ROSS trained its tool using “West headnotes” that Thomson Reuters adds to the legal decisions it publishes, paraphrasing the individual legal conclusions (what lawyers call “holdings”) that the headnotes identified. The tool didn’t output any of the headnotes, but Thomson Reuters sued ROSS anyways. A federal appeals court is still considering the key copyright issues in the case—which EFF weighed in on last year. EFF hopes that the appeals court will reject this overbroad interpretation of copyright law. But in the meantime, the case has already forced the startup out of business, eliminating a would-be competitor that might have helped incre