How UK’s Text and Data Mining Exemption Could Impact Global AI Copyright Laws

Aakriti Bansalon 3 minute read
3 minute read

A new paper by the Tony Blair Institute for Global Change, titled “Rebooting Copyright: How the UK Can Be a Global Leader in the Arts and AI,” lays out a plan to modernize copyright law for artificial intelligence. The UK government’s AI Opportunities Action Plan proposes a text and data mining (TDM) exemption, allowing AI models to train on publicly available data unless rights holders opt out. Policymakers want to balance innovation with creator rights, but many in the creative industries aren’t buying it.

Here’s what’s on the table:

  • Transparency mandates that AI developers disclose where they get their training data.
  • Opt-out mechanisms that let rights holders keep their work out of AI training datasets.
  • A Centre for AI and Creative Industries that encourages collaboration instead of conflict.
  • Funding mechanisms, such as an ISP levy, to help artists and creators adapt to AI-driven changes.

Many artists have pushed back hard against the opt-out model. Over 1,000 musicians protested by releasing a silent album titled Is This What We Want? on Spotify in February 2025. Each track title had a word, and together they spelled out a message: ‘The British Government Must Not Legalise Music Theft To Benefit AI Companies’. The protest made waves, forcing a broader conversation about whether AI companies should profit from artists’ work without fair compensation.

Real-World Examples of AI Copyright Issues

In October 2023, Universal Music Group and other labels sued Anthropic, an AI developer, for generating copyrighted song lyrics in response to user prompts through its AI chatbot, Claude. The case is illustrative of the music industry’s feelings about AI copyright issues and demonstrates the general issues between developing public-facing innovation and intellectual property rights.

However, in March 2025, a U.S. federal court rejected the music labels’ attempt to immediately block Anthropic from training its AI on copyrighted lyrics, stating that the case did not yet meet the standard for a preliminary injunction. The court’s decision highlights how AI copyright cases are still legally unsettled and continue to evolve.

Global Implications: Setting International Precedents

The UK’s AI copyright reforms won’t just stay within its borders. Other countries are watching closely, and this policy could shape global copyright norms. Will the UK’s model become a global blueprint, or will it serve as a cautionary tale? That depends on how well it works in practice.

1. Impact on EU AI Regulations

The European Union is deep in AI regulation discussions with its AI Act and Digital Services Act. If the UK’s opt-out system proves effective, the EU might take a similar path. If it flops, expect stricter protections for creators across Europe.

2. Shaping US Copyright Debates

The US is already knee-deep in legal battles over AI-generated content. The UK’s TDM exception could provide a model for American policymakers or just another example of what not to do. Either way, the UK’s decision will influence the ongoing copyright and AI debates across the Atlantic.

3. The China Factor

China, the other major AI powerhouse, isn’t waiting around. It’s charging ahead with AI development at breakneck speed. If the UK ties itself up in restrictive laws, it could fall behind in the AI-driven economy, losing its edge in global tech and even national security. In an AI arms race, slow policy-making is a liability. The UK must find a way to regulate AI without stifling its own competitiveness.

4. A Guide for Emerging AI Hubs

According to the report, countries like Singapore, Japan, and Canada are drafting their own AI policies. If the UK strikes the right balance between AI development and copyright protection, other nations might follow its lead. If it fails, they’ll learn from its mistakes instead.

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5. Trade and Economic Impacts

AI and copyright laws are shaping international trade more than ever. The UK’s stance could influence trade agreements, licensing deals, and how AI companies operate across borders. For global AI firms, these regulations could determine where they invest and innovate.

Why It Matters?

This isn’t just a legal debate; it’s about the future of creativity. If AI companies can freely train on copyrighted material, human creators could lose control over their work. On the flip side, overly rigid copyright laws could stall AI innovation, pushing research and investment to countries with looser regulations.

For India, this debate hits close to home. The country’s creative industries, from Bollywood to gaming and digital art, are already integrating AI. Yet, India’s copyright laws don’t explicitly address AI-generated works or data mining practices. Without clear policies, Indian artists, musicians, and writers could face the same struggles UK creators are dealing with now.

At the same time, India’s booming AI sector needs legal clarity to innovate without stepping into legal grey areas. A report from the IndiaAI Subcommittee on AI Regulation emphasized the need for a comprehensive legal framework to govern AI, including recommendations around ethical use, training data, and content ownership. The UK’s approach offers a case study, one that India can learn from before AI-driven disruptions escalate.

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