UK Government Rejects Broad AI Copyright Exception, Backs Licensing Market
The UK government has ruled out introducing a broad copyright exception that would allow AI developers to train systems on creative work without permission, according to its formal response to a parliamentary inquiry published on 15 May 2026.
The Communications and Digital Committee had investigated whether such an exception-with an opt-out mechanism for rightsholders-should become law. The government confirmed it will not pursue this approach, saying it would place unfair burdens on individual creators and rights owners to manage their own protections.
The Licensing Market Takes Priority
Instead, the government intends to support the emerging UK AI licensing market, where developers negotiate directly with creators and rights holders for training data access. This market-based approach shifts responsibility to AI companies to secure permissions rather than requiring creators to opt out of unauthorized use.
Baroness Keeley, chair of the Communications and Digital Committee, said the government must now create conditions for licensing to succeed. She called for the government to rule out any copyright reform that would reduce incentives for licensing, including proposals for a new commercial research exception.
Transparency Requirements Still Undefined
The government has committed to establishing transparency requirements for large AI developers, but Keeley warned that voluntary "best practice" guidelines will not be enough. She said only mandatory, statutory requirements can ensure developers disclose their training data sources and drive compliance across the industry.
Without enforceable rules, she argued, the government cannot create a level playing field or enable effective oversight of how AI systems are trained on creative material.
The Sovereign AI Fund as Leverage
Keeley highlighted the recently launched Sovereign AI Fund as an opportunity for government to impose stricter conditions. Companies receiving public support through the fund should be required to meet enhanced transparency standards and respect copyright protections, she said.
The Committee will continue pressing ministers to use all available tools to drive progress on AI and copyright protections for creators.
Your membership also unlocks:
