German States Propose Copyright Levy for Artificial Intelligence

The broadcasting commission representing the German federal states has introduced a policy framework aimed at redefining copyright regulations in the era of artificial intelligence (AI). The proposed measures, outlined in a draft for a new Digital Media State Treaty, focus on protecting intellectual property rights as generative AI technologies become increasingly prevalent in media and information dissemination.

The central feature of the proposal is a legally mandated compensation scheme for the use of copyrighted materials in the training and operation of generative AI systems, including large language models and chatbots. The envisioned licensing model would ensure that rights holders, particularly those in journalism and editorial sectors, receive equitable remuneration when their works contribute to AI development. The compensation is to be managed collectively through established collecting societies, balancing technological innovation with the protection of creative assets.

Furthermore, the proposed framework requires AI providers to significantly increase transparency. Companies developing or deploying generative AI would be obligated to disclose detailed information about the specific works used to train their models, especially when such usage extends beyond basic summarization. There would also be clear labelling rules for automated web crawlers and bots that collect data for AI training purposes.

Recent amendments to European copyright law have created exceptions for text and data mining (TDM), permitting the reproduction of lawfully accessible digital works for research and algorithmic training. However, these exceptions are limited to non-commercial research entities, which must reinvest all profits into scientific activities or act under a recognized mandate serving the public interest. The German states are now evaluating whether these existing TDM provisions are sufficient in view of the rapid expansion of commercial generative AI applications.

Under both German and European legislation, rights holders retain the authority to explicitly restrict the use of their works for TDM. The new proposal emphasizes the need for formal and effective procedures to implement these restrictions, ensuring a fair balance between safeguarding intellectual property and fostering technological progress. Industry organizations have previously advocated for guaranteed compensation when AI systems utilize protected works beyond the TDM exemption.

The draft treaty also addresses the accountability of AI-based content providers. Operators of chatbots and similar systems that offer original content would be subject to stricter regulatory oversight, including mandatory source attribution, direct linking to sources, and reliability checks based on trustworthy reporting. To support media organizations and sustain their business models, the commission seeks an equitable regulatory environment for advertising, aiming to maintain fair competition between traditional broadcasters, online media, and digital platforms.

Specific measures are proposed to protect outlets adhering to journalistic standards. The framework suggests prohibiting discrimination in online visibility, for instance, ensuring that quality editorial content is not disadvantaged in search rankings or content feeds due to paywalls or external linking. The goal is to guarantee at least equal visibility for independently produced editorial content compared to AI-generated material on digital platforms.

Additional recommendations include periodic review and enhancement of user interface regulations to improve the discoverability of reliable media content. The criteria for public interest journalism would be clarified, encouraging investments in high-quality reporting and improving the prominence of credible sources in search results and social media feeds. Reliable content providers might be allowed to use labels that facilitate preferential algorithmic treatment.

The policy framework also addresses the integrity of digital communication spaces. It calls for measures to combat manipulative tactics such as fake accounts, automated bots, and opaque promotional practices. Enhanced oversight is suggested for the deletion of prohibited content, with proposals to expand existing laws to cover offenses like doxxing and certain forms of online harassment. These steps aim to align media regulation with criminal enforcement and strengthen editorial independence and transparency.

The commission underscores the importance of establishing regulatory standards for the digital public sphere within Germany and Europe, rather than allowing global technology companies to set the rules. The draft Digital Media State Treaty continues earlier initiatives to implement European legal directives and is intended to provide a robust foundation for media regulation in the age of artificial intelligence.