AI Copyright Shake-Up Deemed the "Wrong Approach" by Luxury Brands

Published on: March 21, 2025, 12:16 AM UTC

Leading luxury brands, represented by the industry group Walpole, have condemned proposals to reform copyright laws for AI companies, arguing that the plan could undermine creative integrity and harm a multi-billion-pound industry.

• Key Concerns Raised by Luxury Brands:

  • Broad Use Without Consent:
    • The proposed reforms would allow tech companies to use copyrighted works to develop AI software unless the owner opts out.
    • Critics argue this approach ignores the need to negotiate fair licensing deals.
  • Economic Impact:
    • The changes could adversely affect a sector valued at around £80 billion.
    • There are broader implications for the UK creative industry, estimated to be worth £126 billion.
  • Protecting Creative Integrity:
    • Luxury brands, including Chanel, Burberry, and Rolls-Royce, stress that unchecked use of copyrighted material can dilute brand identity and stifle innovation.
    • Helen Brocklebank, CEO of Walpole, emphasizes the necessity of robust intellectual property rights to sustain creativity.

• Industry and Regulatory Context:

  • Government Proposal:
    • The proposed copyright shake-up is part of Labour’s broader effort to adapt legislation to rapid AI advancements.
    • The move aims to attract tech companies by easing restrictions on using copyrighted works.
  • Criticism of the Approach:
    • Critics contend that a one-size-fits-all policy could lead to unforeseen legal and economic consequences.
    • They advocate for a more equitable licensing system that fairly compensates creative industries.

• Wider Implications for the Creative Sector:

  • Risk to Innovation:
    • Allowing AI to train on large swathes of copyrighted material without proper licensing could hurt industries that depend on original design and artistic expression.
  • Call for Balance:
    • Luxury brands are urging policymakers to strike a balance between fostering technological innovation and protecting the economic interests of the creative sector.
  • Global Debate:
    • The controversy reflects a broader global debate on how best to regulate AI while ensuring fair compensation and safeguarding intellectual property.

Luxury brands and industry advocates are calling for a reconsideration of the current proposals, favoring tailored licensing agreements over broad legislative changes that may compromise creativity and industry value.