New Copyright Protections Against AI – What Creators Need to Know February 16, 2026

Do you know your rights when AI gets involved in your creative work?

In a significant win for artists, writers, musicians and copyright holders, the Australian Government has confirmed that existing copyright protections remain in place for creative works used by AI systems. Yet for many creators, the real risk lies in how those rights are managed, protected and enforced.

Here’s what the law currently says about copyright and AI – and why the right legal strategy is critical to safeguarding your work and its long-term value.

What Is Australia’s Position on Copyright and AI?

The Government’s ruling was sparked by the Productivity Commission’s interim report, ‘Harnessing Data and Digital Technology’,  which examined the case for introducing a ‘Text and Data Mining’ (TDM) exception into the Copyright Act 1968 (Cth). Such an exception would allow the use of copyrighted content for AI training.

The report estimated AI could generate a $116 billion boost to the economy over the next decade.

As reported in The Guardian, Scott Farquhar, co-founder of Atlassian, has called for urgent reform of Australia’s copyright framework, saying the current rules lag behind those of comparable countries. He has argued that introducing exemptions for text and data mining to support large language model training “could unlock billions of dollars of foreign investment into Australia.”

But after extensive consultation, the Government has confirmed that existing copyright protections will remain in place. This means creators retain control over whether their work can be accessed, copied and commercialised by AI systems.

The announcement from Attorney-General Michelle Rowland on 26 October 2025 followed significant public debate and concern that creators’ interests were being sidelined in favour of rapid AI development.

It is worth noting that the European Union took a different approach in 2019, introducing a text and data mining exception that allows rights holders to opt out. While intended to strike a balance, the opt-out system has been criticised for being difficult to apply in practice, creating uncertainty for businesses trying to comply and for creators trying to protect their work.

How Australian Copyright Law Protects Creators

Australian copyright law provides strong protection for creative works.

The law is built on several core principles:

• Automatic protection
  Copyright arises automatically upon creation and generally lasts for the life of the author plus 70 years

• Protecting expression, not ideas
  The law protects the specific form of a work – the words, images, sounds or footage – rather than the underlying idea itself

• Originality requirement
  To qualify for protection, a work must originate from an author and involve some independent intellectual effort

• Protection of compilations (‘sweat of the brow’)
  Copyright may also protect databases and compilations based on the time, skill and labour invested in gathering and arranging material.

Copyright owners hold important exclusive and moral rights over their works:

• Exclusive rights control economic exploitation. This includes the creator’s exclusive right to reproduce, distribute, and commercially exploit the work (such as through royalties)

• Moral rights protect the creator’s personal connection to the work, including the right of attribution and protecting the work from derogatory treatment.

If anyone other than the owner exercises those rights without permission, it is prima facie copyright infringement.

However, use of copyrighted material without permission may be lawful where a specific exception applies. The most common are the fair dealing exceptions, which apply in limited circumstances such as research or study and parody or satire.

In terms of the Government’s ruling, if fair dealing were extended to cover text and data mining, this would make the use of copyright material for the purpose of training AI models and algorithms lawful, provided the use is ‘fair’.

The Real-World Legal Challenges Facing Creators

The relationship between copyright law and AI is already being tested in court, with important lessons for Australian creators.

Overseas, the landmark case of Getty Images v Stability AI, while based on a different copyright framework, is significant because it shows how copyright law can be interpreted when AI is involved.

The High Court held that Stability’s AI image creation model, Stable Diffusion – which was trained on Getty’s images and sometimes even recreated its watermark – did not infringe upon Getty’s right of reproduction because it did not ‘store or reproduce any copyrighted works’.

While the Government’s decision provides important clarity, it does not resolve all of the complex issues of copyright and AI, such as who should be treated as the author of AI-generated material or where that material comes from, given the vast amounts of data used to train these systems.

So the need for policy guidance on transparency is clear – and there remains a real risk of an economic free-for-all that would leave creators disadvantaged as AI continues to evolve.

How to Protect Your Work in an AI-Driven Market

Copyright remains one of the strongest tools creators now have.

MDW’s Entertainment lawyers help clients structure agreements, protect intellectual property and respond effectively when creative work is misused. Whether you are producing, licensing or distributing content, we can help you manage risk and preserve long-term commercial value.

Get in touch with our entertainment lawyers to discuss how best to protect your content and rights.

Australian Copyright & AI: FAQs

Does Australian copyright still protect creative works used by AI?

Yes. Australian copyright law continues to apply even when creative works are used by Artificial Intelligence. The Government has confirmed that existing copyright protections remain in place, meaning creators retain control over how their work is accessed, copied and commercialised.

Can copyrighted material be freely used for AI training?

No. Copyrighted material cannot be freely used for AI training. Consent or licensing from the copyright owner is required unless a specific exception applies, such as fair dealing in limited circumstances.

What risks do creators face from unauthorised AI use of their content?

Unauthorised use can result in loss of control over creative works, reduced commercial value, and infringement of both economic and moral rights, including the right of attribution and protection from derogatory treatment.

Why is legal advice now more important than ever for creators?

Because copyright, licensing and enforcement issues around AI are becoming increasingly complex. Early legal advice helps creators ensure their rights are properly structured, protected and enforced as AI technologies continue to evolve.