FOR IMMEDIATE RELEASE

Arlington, VA – Today the Senate Judiciary Subcommittee on Privacy, Technology, and the Law will hold a hearing at 2:00 p.m. ET, on “Oversight of A.I.: The Future of Journalism,” which will explore the impact of the growth of generative artificial intelligence (GAI) technology on publishers’ ability to provide high-quality journalism and possible oversight mechanisms to help protect and sustain quality journalism.

Witnesses scheduled to testify at the hearing include Danielle Coffey, President & CEO of the News/Media Alliance (written testimony here); Roger Lynch, CEO at Condé Nast (written testimony here); Curtis LeGeyt, President and CEO of the National Association of Broadcasters (written testimony here); and author Jeff Jarvis (written testimony here).

Coffey’s comments before the Subcommittee will explain how Generative AI tools exploit news content to compete directly with publishers, yet need quality journalism to train their systems. Coffey will focus on the copyright infringement implications of how GAI developers train and use their models, as well as the need for legislation, including requiring transparency and responsibility from GAI developers, and passing the Journalism Competition & Preservation Act (JCPA), which would allow publishers to collectively negotiate for fair compensation for use of their content by the dominant tech platforms, such as Meta and Google.

Since generative AI technology took off exponentially last year, the News/Media Alliance has been leading the call for AI companies to seek proper permissions and licensing from publishers for use of their valuable content. Last fall, the Alliance published a White Paper revealing that GAI systems copy massive amounts of publishers’ original works, almost always without authorization or compensation, and publisher content is overweighted in materials used for training these systems. The White Paper and comments the Alliance submitted to the U.S. Copyright Office also explain the legal implications of such use.

In response to the hearing, News/Media Alliance President & CEO, Danielle Coffey stated, “We commend Subcommittee Chair Richard Blumenthal and Ranking Member Josh Hawley and the Senate Judiciary Committee for recognizing the urgent need to address our very serious concerns about the impacts of AI technology on providers of quality journalism, as well as the legal questions this raises. AI companies are scraping our content to compete with it – usually without any compensation to, or permission from the publishers of that content – while they reap all the benefits. This is classic freeriding that infringes publishers’ copyrights and goes far beyond fair use.”

Coffey’s testimony offers multiple suggestions for policymakers, including:

• Recognizing that unauthorized use of publishers’ expressive content for commercial GAI training and development is likely to compete with and harm publisher businesses in a manner that infringes copyright;
• Creating transparency requirements to require the recordkeeping and disclosure of unauthorized training uses of material that is protected by copyright, by technical protection measures, or governed by contractual terms prohibiting scraping; and
• Adopting legislation to remedy existing market imbalances that prevent publishers from engaging in fair negotiations for the use of their content against dominant platforms.

A new report released by the Medill School of Journalism at Northwestern University in November found that the rate of newspaper closures has accelerated, now at 2.5 closures per week (with more than 130 confirmed newspaper closings or mergers in the last year), resulting in the expansion of news deserts, in which communities lack a source of local news.

Coffey concluded, “For years the tech platforms have gotten away with using publishers’ content without appropriate compensation. This problem, having gone unaddressed, has been getting worse and now, AI doubles down on the threat the largest tech platforms pose to publishers’ viability. Countries all over the world are introducing and passing legislation requiring the tech platforms to pay news publishers. The United States cannot fall behind other countries and should pass the JCPA, which will ensure publishers can continue to provide important high-quality journalism we all depend on. We have to act now before it’s too late.”

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Media Contact:
Lindsey Loving
Director, Communications
lindsey@newsmediaalliance.org

The News/Media Alliance is a nonprofit organization representing more than 2,200 news and magazine media organizations and their multiplatform businesses in the United States and globally. Alliance members include print and digital publishers of original journalism. Headquartered just outside Washington, D.C., the association focuses on ensuring the future of journalism through communication, research, advocacy, and innovation. Information about the News/Media Alliance can be found at www.newsmediaalliance.org.

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Arlington, VA – Today News/Media Alliance President & CEO Danielle Coffey is attending as an invited participant in a bipartisan forum hosted by Senate Majority Leader Chuck Schumer on “AI – Transparency, Explainability, Intellectual Property, & Copyright.”

This is the seventh AI Insight Forum that seeks to further innovation and develop bipartisan artificial intelligence legislation that takes the opportunities as well as the threats of AI technology into account. Also participating in the forum are 19 leaders from various industries, including the news media, entertainment, and tech industries.

Today’s Forum focuses on two key areas of AI policy: 1) transparency and explainability and 2) intellectual property and copyright, including addressing concerns around the use of copyrighted content in training and prompting. These are the most vital artificial intelligence concerns for the Alliance’s members.

In addition to a written statement provided in advance of the Forum, Coffey will provide oral remarks sharing the unique perspective of the news and magazine industry.

Coffey stated, “I am honored to be invited by Majority Leader Schumer, Senator Rounds, Senator Heinrich, and Senator Young to participate in this AI forum and I look forward to the dialogue. This is a critical time in the evolution of AI technology, and it is important to strike the right balance of creativity, innovation, regulation, and respect for existing rights. We must ensure that publishers of high-quality journalism whose content is being used to train AI systems have a seat at the table.”

The Alliance – whose members comprise over 2,200 news and magazine media organizations and their multiplatform businesses in the U.S. and globally – has been leading the call since the advent of generative AI chatbots earlier this year for AI companies and developers to properly compensate publishers of quality journalism for use of their valuable content to train generative AI systems (GAI).

In April, the Alliance released AI Principles for the news and magazine media industry, which highlight the overarching principles that must guide the development and use of GAI systems as well as the policies and regulations governing them. Among other things, the AI Principles outline the need for GAI developers to obtain explicit permission for use of publishers’ intellectual property, and for publishers to be able to negotiate for fair compensation for use of their IP by these developers. In addition, the Alliance helped organize the publication of Global AI Principles in September, endorsed by 31 organizations representing thousands of creative professionals around the world, including news, entertainment, magazine, and book publishing companies and the academic publishing sector.

On October 31, the Alliance released a White Paper entitled, “How the Pervasive Copying of Expressive Works to Train and Fuel Generative Artificial Intelligence Systems Is Copyright Infringement And Not a Fair Use,” which shows that GAI systems have been developed by copying massive amounts of the expressive material published by the Alliance’s members, almost always without authorization or compensation, to create new products and services that frequently compete with Alliance member publishers.

The Alliance also recently submitted comments to the U.S. Copyright Office on the use of publisher content to power generative artificial intelligence technologies (GAI). The comments, White Paper and accompanying technical analysis together document the pervasive, unauthorized use of publisher content by GAI developers, the impact this may have on the sustainability and availability of high-quality original content, and the legal implications of such use.

The Copyright Office comments and the White Paper offer multiple recommendations to policymakers, including recognizing that unauthorized use of publishers’ expressive content for commercial GAI training and development is likely to compete with and harm publisher businesses in a manner that infringes copyright; creating transparency requirements to require disclosure of the use of copyright protected content in training; encouraging and facilitating effective licensing solutions; supporting international cooperation and harmonization on GAI regulations; and adopting legislation to remedy existing market imbalances that prevent publishers from engaging in fair negotiations for the use of their content against dominant platforms.

Coffey added, “For years the Big Tech platforms have gotten away with using our publishers’ content to add billions to their bottom lines, all while publishers have suffered. Now, the platforms and AI companies are scraping publisher content and using it to train their generative AI systems – again without compensating publishers. This goes far beyond fair use. Journalists, writers, publishers, and other creators make the investments and take the risks while generative AI developers reap the rewards of traffic, data, brand creation, subscription fees, and advertising dollars. This is freeriding, and it is antithetical to established copyright law and the public interest that it serves.”

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Media Contact:
Lindsey Loving
Director, Communications
lindsey@newsmediaalliance.org

The News/Media Alliance is a nonprofit organization representing more than 2,200 news and magazine media organizations and their multiplatform businesses in the United States and globally. Alliance members include print and digital publishers of original journalism. Headquartered just outside Washington, D.C., the association focuses on ensuring the future of journalism through communication, research, advocacy, and innovation. Information about the News/Media Alliance can be found at www.newsmediaalliance.org.

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Arlington, VA – Yesterday, the News/Media Alliance published a White Paper and a technical analysis and submitted comments to the U.S. Copyright Office on the use of publisher content to power generative artificial intelligence technologies (GAI). Together, the three publications document the pervasive, unauthorized use of publisher content by GAI developers, the impact this may have on the sustainability and availability of high-quality original content, and the legal implications of such use. GAI systems have been developed by copying massive amounts of the expressive material published by the Alliance’s members, almost always without authorization or compensation, to create new products and services that frequently compete with Alliance member publishers.

The Alliance recognizes the exciting potential of GAI models and applications to improve aspects of our lives and supports the principled development of these systems. But this development must not come at the expense of publishers and journalists who invest considerable time and resources producing material that keeps our communities informed, safe, and entertained, and holds our government officials and other decision makers in check. The Alliance and its members would welcome working with GAI developers to help build and grow these technologies in a sustainable and responsible manner.

While the Copyright Office submission and White Paper discuss the wider publisher landscape in the face of the GAI revolution, including relevant principles of copyright law, the accompanying technical analysis documents the extent to which GAI developers rely on high-quality journalistic content to power their models. In particular, the results show:

• GAI developers have copied and used news, magazine and digital media content to train large language models (LLMs).
• Popular curated datasets underlying LLMs significantly overweight publisher content by a factor ranging from over 5 to almost 100 as compared to the generic collection of content that the well-known entity Common Crawl has scraped from the web.
• Other studies show that news and digital media ranks third among all categories of sources in Google’s C4 training set, which was used to develop Google’s GAI-powered products like Bard. Half of the top ten sites represented in the data set are news outlets.
• The LLMs also copy and use publisher content in their outputs. The LLMs can reproduce the content on which they were trained, demonstrating that the models retain and can memorize the expressive content of the training works.

Alliance President & CEO Danielle Coffey stated, “The research and analysis we’ve conducted shows that AI companies and developers are not only engaging in unauthorized copying of our members’ content to train their products, but they are using it pervasively and to a greater extent than other sources. This shows they recognize our unique value, and yet most of these developers are not obtaining proper permissions through licensing agreements or compensating publishers for the use of this content. This diminishment of high-quality, human created content harms not only publishers but the sustainability of AI models themselves and the availability of reliable, trustworthy information.”

The Copyright Office comments and the White Paper offer multiple recommendations to policymakers, including recognizing that unauthorized use of publishers’ expressive content for commercial GAI training and development is likely to compete with and harm publisher businesses in a manner that infringes copyright; creating transparency requirements to require disclosure of the use of copyright protected content in training; encouraging and facilitating effective licensing solutions; supporting international cooperation and harmonization on GAI regulations; and adopting legislation to remedy existing market imbalances that prevent publishers from engaging in fair negotiations for the use of their content against dominant platforms.

Coffey continued, “Generative AI systems should be held responsible and accountable, just like any other business. This White Paper demonstrates that these systems rely on journalistic and creative content, which have the benefit of investment in quality on the front end, as well as publishers who are required by law to take responsibility for the content they share with the public. Continued unauthorized use will harm existing markets that acknowledge the value of archived and real-time quality content, and over time the GAI models themselves will deteriorate. You get out what you put in. It is critical that our copyright protections are properly enforced and that high standards of quality and accountability are the foundation of these and other new technologies.”

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Media Contact:
Lindsey Loving
Director, Communications
lindsey@newsmediaalliance.org

The News/Media Alliance is a nonprofit organization representing more than 2,200 news and magazine media organizations and their multiplatform businesses in the United States and globally. Alliance members include print and digital publishers of original journalism. Headquartered just outside Washington, D.C., the association focuses on ensuring the future of journalism through communication, research, advocacy, and innovation. Information about the News/Media Alliance can be found at www.newsmediaalliance.org.

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Facts of the case
In 1981, Lynn Goldsmith photographed and held copyright for a photograph of singer and musician Prince. Three years following the photo shoot, Goldsmith licensed the use of the photo to Vanity Fair and the magazine commissioned artist Andy Warhol to create a silkscreen work based on the photo, to be used as an illustration alongside an article about the musician in the magazine. The agreement was for a one-time use of the photograph, with permission from Goldsmith and with her credited. However, Warhol used the photo as the basis for his Prince Series without Goldsmith’s knowledge. After Prince died in 2016, Condé Nast (Vanity Fair publisher) created a tribute magazine for him using Warhol’s illustration, as licensed by the Andy Warhol Foundation (“AWF”), on the cover of the magazine without crediting Goldsmith. When Goldsmith became aware of this, she informed AWF of her intent to take legal action. In the U.S. District Court for the Southern District of New York, the judge ruled for AWF in finding that the illustration fell under fair use, leading Goldsmith to appeal to the Second Circuit. After the Second Circuit ruled in Goldsmith’s favor, the Warhol Foundation petitioned the Supreme Court. On June 17, 2022, the News/Media Alliance filed an amicus brief with the Supreme Court.

Question for the Court
The Court considered whether the “purpose and character” of Warhol’s Prince illustration in the Condé Nast tribute was considered transformative in a commercial context such that it could be considered as a “fair use” defense to copyright infringement.

Decision
In a 7-2 ruling, the Court decided that the Andy Warhol Foundation violated photographer Lynn Goldsmith’s copyright and the use of the photograph was not protected by fair use. Justice Sonia Sotomayor delivered the opinion, stating, “The use of a copyrighted work may nevertheless be fair if, among other things, the use has a purpose and character that is sufficiently distinct from the original. In this case, however, Goldsmith’s original photograph of Prince, and AWF’s copying use of that photograph in an image licensed to a special edition magazine devoted to Prince, share substantially the same purpose, and the use is of a commercial nature.” Justice Kagan filed a dissenting opinion, in which Chief Justice Roberts joined.

Free press implications
The decision creates implications for copyright infringement and fair use boundaries impacting journalism. Authoring the dissenting opinion, Justice Elena Kagan stated that the decision “will stifle creativity of every sort. It will impede new art and music and literature. It will thwart the expression of new ideas and the attainment of new knowledge. It will make our world poorer.”

For further reading, please visit:

• SCOTUSblog: Andy Warhol Foundation for the Visual Arts, Inc. v. Goldsmith
• NPR: Supreme Court sides against Andy Warhol Foundation in copyright infringement case.
• New York Times: Ruling Against Warhol Shouldn’t Hurt Artists. But It Might.
• Smithsonian Magazine: Supreme Court Rules That Andy Warhol Violated a Photographer’s Copyright

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