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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News Media Alliance President and CEO, David Chavern, stated, “These SBA loans will allow news publishers to continue to bring critical news and information to their local communities, particularly at this time of historic challenges.”

The language is similar to the “Local News and Emergency Information Act of 2020” introduced by Senators Maria Cantwell (D-WA), John Boozman (R-AR), Amy Klobuchar (D-MN), Joni Ernst (R-IA) and Chuck Schumer (D-NY) in the Senate, and by Chairman David Cicilline (D-RI) and Ranking Member F. James Sensenbrenner (WI-05) in the House.

The Alliance is extremely grateful to all of the congressional champions, in both the House and the Senate, for their enduring support of high-quality local journalism, and for their leadership in gathering bipartisan support for an SBA affiliation waiver for news publishers.

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This waiver language follows that included in the updated HEROES Act passed by the House on October 1. Both bills would allow news publishers to apply for PPP loans as individual, independent entities, despite ownership by companies with other small news publishers or non-news businesses, allowing more publishers to qualify for the vital loans.

The Alliance is extremely grateful to Senators Cardin, Shaheen, Schumer, and Coons for their support of high-quality, local journalism, and for their leadership in gathering extensive support for the bill in the Senate with 29 Senators having already signed on as co-sponsors. These SBA loans, which will allow news publishers to continue bringing critical news and information to their local communities, are more critical than ever, as news publishers face extreme challenges from the coronavirus pandemic.

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Image: Getty

Today, a bipartisan bill, the Local News and Emergency Information Act of 2020, was introduced in the Senate that offers legislative text around a Small Business Administration (SBA) affiliation waiver that would allow more news publishers to apply for SBA loans under the Paycheck Protection Program (PPP). The bill was introduced by Senators Maria Cantwell (D-WA), John Boozman (R-AR), Amy Klobuchar (D-MN), Joni Ernst (R-IA) and Chuck Schumer (D-NY). The affiliation waiver would allow news publishers to apply for PPP loans as individual, independent entities, despite ownership by companies with other small news publishers or non-news businesses, allowing more publishers to qualify for the vital loans. The bill includes language that would restrict these funds to be used by the parent-owner of the newspaper-borrower.

The Alliance applauds the Senators for their leadership in gathering bipartisan support for this SBA affiliation waiver for news publishers and looks forward to more news publishers being eligible to apply for these loans, which will allow them to continue bringing critical news and information to their local communities.

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Today a bipartisan letter was sent from four influential U.S. Senators Maria Cantwell (D-WA), John Kennedy (R-LA), Amy Klobuchar (D-MN), and John Boozman (R-ARK) to their Senate colleagues urging support for expanding U.S. Small Business Administration loan access to struggling local newspapers.

Under the original SBA loan program — the Paycheck Protection Program (PPP) that was part of the Coronavirus Aid, Relief and Economic Security (CARES) Act – newspapers with fewer than 1000 employees were made eligible for forgivable SBA loans to help cover employee salaries, benefits, rent payments and other essential operating costs. While providing welcome relief to some media outlets, the restriction on newspapers that are part of other newspaper groups or non-news business unnecessarily penalizes thousands of local newspapers across the country that operate in hometowns across America. This harmful exclusion would be corrected under the proposal offered by Sens. Cantwell, Kennedy, Klobuchar and Boozman.

As the letter from the four Senators explains, newspapers and broadcasters are facing unprecedented carnage in the local advertising market. At the same time, consumers are flocking to newspapers and local broadcasting for credible and trustworthy news in record numbers.

The Alliance thanks Sens. Cantwell, Kennedy, Klobuchar and Boozman and strongly endorses their legislative initiative.

Here are quotes that can be attributed to both News Media Alliance President & CEO David Chavern and NAB President Gordon Smith:

“During this time of unprecedented uncertainty, reliable local news and information is more important than ever,” said News Media Alliance President and CEO David Chavern. “SBA loans have allowed some local news publishers to keep reporters employed and their newsrooms running as an essential function. But too many publishers have been left out because they are part of groups with other small publishers or non-news businesses. We are requesting changes to the SBA loan program would allow funds to flow to more local newsrooms, and help them to continue doing the work that sustains communities during a time of crisis. We applaud Senators Cantwell, Kennedy, Klobuchar, and Boozman for their leadership in pushing for this measure and we call on Congress to expand the SBA program to cover local news outlets.”

“NAB is grateful to Senators Cantwell, Kennedy, Klobuchar and Boozman for their leadership in supporting expanded access to Small Business Administration loans for local radio and television stations under the Payroll Protection Program,” said NAB President Gordon Smith.  “America’s broadcasters are providing trusted and credible lifesaving coverage to keep citizens safe during the COVID-19 pandemic, yet local stations are suffering advertising losses of historic proportion that will undermine this critically important service. We urge Congressional leaders to support this proposal to provide immediate SBA loan eligibility to more local radio and TV stations.”

United States Senate

For Immediate Release

April 19, 2020

Contact:

Ben Marvin-Vanderryn (Cantwell)

(202) 695-9056

Jess Andrews (Kennedy)

Cantwell, Kennedy, Klobuchar, Boozman Send Bipartisan Letter Urging Support for Local Media Outlets Amidst COVID-19 Pandemic

Letter asks Senate Leadership to make more local newspapers, TV, and radio stations eligible for support under Paycheck Protection Program

Local newspapers have lost as much as 50 percent of ad revenue; some local broadcasters have lost up to 90 percent

WASHINGTON, D.C. – As the Senate considers additional measures to support small businesses around the country struggling with the impacts of the COVID-19 pandemic, U.S. Senators Maria Cantwell (D-WA), John Kennedy (R-LA), Amy Klobuchar (D-MN), and John Boozman (R-AR) sent a letter to Senate leadership urging them to ensure any future legislation make thousands of local newspapers, TV, and radio stations around the country eligible for small business assistance under the Paycheck Protection Program (PPP).

In the letter, the senators called for waiving the Small Business Administration’s (SBA) affiliation rule to allow local media outlets to access funding, pointing to the critical role these outlets play in keeping communities healthy and informed.

“Ensuring that local news outlets remain viable at this critical time is not only a matter of fairness, but is essential to public health,” the senators wrote. “Local newspapers, radio, and television stations provide important local content that keeps their communities informed. People rely on local newspapers and broadcasters to cover school and business closures, to widely communicate public health guidance, and to combat life-threatening misinformation.”

The COVID-19 pandemic has had devastating effects on local media outlets around the country. In the last few months, local newspapers have lost as much as 50 percent of advertising revenue, and the National Association of Broadcasters found that some local broadcasters have reported as much as a 90 percent loss in advertising revenues. Nationwide, advertising losses for local TV and radio broadcasters are estimated to reach at least $3 billion. The crisis has also resulted in an estimated 28,000 news workers being laid off nationwide.

These losses have only increased the financial difficulties many local media outlets have been feeling for years. From 2005 to 2018, newspaper advertising revenue fell from $49 billion to $14 billion, while subscription revenue remained flat. During the same time period, at least 1,800 newspapers went out of business and roughly 28,000 newsroom jobs were lost nationwide.

“Waiving SBA’s affiliation rules for local newspapers and broadcasters and ensuring that financial assistance flows to the local affiliate, not the parent company, would allow these small, local operations to be eligible for much-needed financial relief. Local newspapers and broadcasters have been hit hard by the COVID-19 crisis, are essential for maintaining a well-informed public, and deserve our help,” the senators concluded.

U.S. House Antitrust Subcommittee Chairman David N. Cicilline (D, RI-01) and Representative Jim Sensenbrenner (R, WI-05) are leading a similar effort to support local news outlets in the House of Representatives.

The full text of the letter can be found here and below.

April 18, 2020

Dear Leader McConnell and Leader Schumer:

We urge you to ensure that any future stimulus package makes more local newspapers and radio and television broadcasters eligible for small business assistance under the Paycheck Protection Program (PPP), created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Up to several thousand newspapers and hundreds of local radio and television stations across the country were cut out of existing programs by the U.S. Small Business Administration’s affiliation rule, which restricts assistance to companies owned or controlled by larger entities. Even though these news outlets may be owned by larger groups, they operate independently.

Ensuring that local news outlets remain viable at this critical time is not only a matter of fairness, but is essential to public health. Local newspapers, radio, and television stations provide important local content that keeps their communities informed. People rely on local newspapers and broadcasters to cover school and business closures, to widely communicate public health guidance, and to combat life-threatening misinformation. The CARES Act waived the affiliation rule for hotels and restaurants allowing them to benefit from small business assistance, and the same consideration should extend to local news outlets in light of their vital role in maintaining public health.

At the same time, local newspapers, radio, and television stations have lost major advertising revenue because of COVID-19’s devastating impact on the American economy. According to the News Media Alliance, newspapers have lost up to 50 percent of advertising revenue for the second quarter of the year. According to a nationwide survey conducted by the Interactive Advertising Bureau, traditional media, including local radio and television stations, will see a 43 percent decline in advertising revenue for March and April. The National Association of Broadcasters has found that some local broadcasters have even reported that up to 90 percent of their advertising revenue has been lost.

Waiving SBA’s affiliation rules for local newspapers and broadcasters and ensuring that financial assistance flows to the local affiliate, not the parent company, would allow these small, local operations to be eligible for much-needed financial relief.

Local newspapers and broadcasters have been hit hard by the COVID-19 crisis, are essential for maintaining a well-informed public, and deserve our help.

Sincerely,

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