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Copyright exception rules in Singapore need to be clarified – U.S. Motion Picture Association

10 December 2024

Copyright exception rules in Singapore need to be clarified – U.S. Motion Picture Association

The United States Motion Picture Association wants Singapore to clarify its copyright exception rules for artificial intelligence (AI) companies – particularly how this copyright exception operates for computational data analysis or text and data mining.

It also wants Singapore to have an opt-out mechanism for copyright owners.

The organization expressed these objectives in a submission to the U.S. Trade Representative to convince the government to exert pressure on countries with or aiming to have copyright exceptions for AI companies to allow rights owners to opt out.

George Hwang, director of George Hwang LLC in Singapore, agrees the country’s copyright exception rules on data mining should be clearer. He believes the problem may be its scope.

George Hwang | director of George Hwang LLC, Singapore

“One of the conditions is that the use must be limited to computational data analysis or preparatory action towards it,” he said. “Computational data analysis is defined in Section 243. It is an inclusive definition. This means that it is not limited to using a computer program to identify, extract and analyze information or data from the work or recording of a performance, and to using the work or recording as an example of a type of information to improve the functioning of the program.”

“Another condition for the exception of computational data analysis to apply is that the AI must have lawful access to the data. Members of organizations such as the U.S. Motion Picture Association (MPA) usually do not put their films on the internet for free. They are likely to be on paywalled platforms such as Netflix and Disney. Currently, their copyrighted material would be protected.”

“However, the government’s paper for “Public Consultation on Prescribed Exceptions in Part 6, Division 1 of the Copyright Regulations 2021” has created some fear. Singapore’s Ministry of Law is seeking feedback and information on whether the Copyright Act 2021’s provisions against circumvention access control measures or technological protection measures have hampered computational data analysis in the industry players. Should circumvention of technological protection be legalised for the purpose of AI training, their members’ works will be exposed to use by AI companies without compensation.”.

Hwang added that such provisions run the risk of AI companies “sheltering” themselves in Singapore so they can mine the internet for text and data they can use to train their AI models without a licence. He explained: “If an action against a Singaporean company for infringing copyright overseas – Country X – is brought against it in Singapore, the plaintiff needs to be able to overcome the hurdle of ‘double actionability.’ The action must be actionable in Country X and in Singapore. If the permission in Section 244 has no geographical limitation, the defendant in Singapore may be able to have the case dismissed at a preliminary stage. No trial needs to be held.”

Hwang also said an opt-out mechanism is important. “Having an opt-out mechanism for rights owners is critical in letting them have some form of control over their works. This has to be expressed, given that the Copyright Act 2021 does not allow anyone to contract out of the permitted use for computational data analysis,” he said.

- Espie Angelica A. de Leon 


Law firms