Groups Claim FTC Doesn’t Have Authority to Address AI Copyright Issues

The FTC lacks the authority to regulate copyright matters related to AI-generated content, tech groups told the commission Thursday. In comments earlier this month, the FTC told the Copyright Office AI-generated activity may prompt FTC enforcement against unfair competition and unfair or deceptive practices (see 2311080038). None of the FTC’s authorizing statutes mentions copyright, and the CO’s statutes don’t mention FTC authority, said TechFreedom Associate Counsel Andy Jung during the FTC’s open meeting. The CO doesn’t list the FTC as one of its enforcement partners, he noted, saying the commission “has no expertise or authority related to copyright.” Chamber of Progress Legal Advocacy Counsel Jess Miers said the FTC erroneously supports a licensing framework that would hinder the free and fair use of publicly available works. Interpretation of copyright law falls within the jurisdiction of the courts, not within the scope of FTC Act Section 5 enforcement, she said. Copyright law has traditionally recognized the “fair use of intermediate copying” for activities such as search indexing and browsing, and this logically extends to AI model training, she said. Benjamin Harbakk, a game developer, urged the FTC to help content creators whose work is copied and sold without permission. AI generators can mimic and steal content, and thousands of pieces of artwork can be created in an hour or less, he said. The original creators have no recourse aside from lengthy legal processes associated with the Digital Millennium Copyright Act, he said. Chair Lina Khan didn’t address public comments on copyright but said voice-cloning scams are an agency focus. Sen. Amy Klobuchar, D-Minn., provided anecdotal evidence of scammers targeting military families with voice clones of service members. She urged the FTC and FCC to act. Voice cloning scams have the potential to get much worse, and consumers often aren’t able to decipher what’s AI-generated, said Khan: The FTC will continue working closely with its government partners to enforce against voice-cloning scams.