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AI training using copyrighted works requires owners’ approval, says deputy minister

AI training using copyrighted works requires owners’ approval, says deputy minister

KUALA LUMPUR, Aug 4 — The use of copyrighted material for artificial intelligence (AI) model training is subject to approval from copyright holders, with licensing arrangements and royalty payments to be agreed by the relevant parties under the Copyright Act 1987.

Deputy Domestic Trade and Cost of Living Minister Datuk Fuziah Salleh said the requirement applies to any use of copyrighted works, whether for AI applications or other purposes.

“Permission from the copyright owner is required for any work to be used, whether or not it involves AI technology,” she said during a question-and-answer session at the Dewan Negara today.

She was responding to a supplementary question from Senator Datuk Wu Him Ven, who asked whether the government required copyrighted works used for AI model training to obtain approval from copyright owners, and whether licensing and royalty mechanisms would be introduced to ensure proper compensation for local creators.

Fuziah said Section 27 of the Copyright Act 1987 stipulates that payment arrangements are subject to agreements between parties, which can be carried out through licensing, rights assignments or managed through Collective Management Organisations (CMOs) representing copyright owners.

Fuziah said the government has not yet carried out a dedicated study on how AI-generated content affects job opportunities and earnings for local creative industry workers, in response to a supplementary question from Senator Wan Martina Wan Yusoff.

However, she said the government is conducting ongoing engagements with various stakeholders and studying approaches adopted by other countries before considering any new policies or legal frameworks.

“No impact assessment has been conducted yet as we are continuing consultations and studying models adopted by other countries to understand the implications better. AI is evolving very quickly, which is why the engagement process must continue,” she said.

Earlier, Fuziah said Malaysia has yet to record any court cases involving copyright violations arising from the use of AI technology.

She said Malaysia’s Copyright Act 1987 currently protects only works that demonstrate originality through human effort, skill and intellectual contribution, while fully AI-generated works without significant human creativity do not qualify for copyright protection.