Experts warn AI copyright changes could breach Australian constitution and spark huge compensation rights case
News Source
β’Fri, 30 Oct 2026 14:00:18 GMT
π° What Happened
Coalition senators and the recording industry are warning that letting AI companies scrape music, books and journalism could breach section 51 of the constitution, which allows the Commonwealth to make laws about acquiring property on just terms. Nationals senator Ross Cadell, a member of the federal parliamentary committee on AI, told Guardian Australia the government could face 'the biggest compensation rights case in history' from rights holders worldwide.
π The Backstory
Labor is weighing copyright changes as part of a broader AI package covering datacentres, online safety, workforce and energy, and Anthropic has proposed an opt-out model that would let it scrape material unless a rights holder deploys digital protections. Anne Twomey, professor emerita of law at the University of Sydney, said the issue is 'potentially' a constitutional concern depending on how legislation is drafted, and the attorney general's department said it was 'extremely alive' to the risk.
π― Why It Matters
The dispute turns on the same legal point as the film The Castle and pits AI investment against creative industries Anthony Albanese has promised 'the strongest possible protection'. Attorney General Michelle Rowland says any changes will deliver 'meaningful control and fair compensation', but no draft legislation has been released, leaving the lobbying fight unresolved.
Coalition senators and the recording industry are warning that letting AI companies scrape music, books and journalism could breach section 51 of the constitution, which allows the Commonwealth to make laws about acquiring property on just terms. Nationals senator Ross Cadell, a member of the federal parliamentary committee on AI, told Guardian Australia the government could face 'the biggest compensation rights case in history' from rights holders worldwide.
Labor is weighing copyright changes as part of a broader AI package covering datacentres, online safety, workforce and energy, and Anthropic has proposed an opt-out model that would let it scrape material unless a rights holder deploys digital protections. Anne Twomey, professor emerita of law at the University of Sydney, said the issue is 'potentially' a constitutional concern depending on how legislation is drafted, and the attorney general's department said it was 'extremely alive' to the risk.
The dispute turns on the same legal point as the film The Castle and pits AI investment against creative industries Anthony Albanese has promised 'the strongest possible protection'. Attorney General Michelle Rowland says any changes will deliver 'meaningful control and fair compensation', but no draft legislation has been released, leaving the lobbying fight unresolved.