Join this online event to explore legally sound and economically sustainable solutions for licensing and remuneration in the age of Generative AI.

Despite the introduction of a general principle of fair and proportionate remuneration in Articles 18–23 of the Copyright Digital Single Market Directive (CDSMD), creators continue to face growing difficulties in securing an adequate return for their intellectual efforts in the digital environment. The so-called downstream value gap , reflecting the widening divide between the revenues captured by exploiters and those received by authors, risks expanding further in the era of Generative AI. Providers of AI systems may rely on Articles 3 and 4 of the CDSMD, which introduce exceptions for Text and Data Mining (TDM), potentially avoiding remuneration obligations and liability for infringement.

Scholars have highlighted the inadequacy of the current TDM framework in addressing the technological complexity and economic impact of Generative AI. Uncertainties surrounding the scope of these exceptions, together with the opt-out mechanism available to rightsholders, are likely to generate significant transaction and licensing costs. This, in turn, may incentivise AI developers to train their models outside the European Union, with possible negative consequences for the EU’s innovation capacity.

Although the AI Act and related soft-law initiatives such as the Copyright Chapter of the AI Code of Practice seek to clarify the interaction between AI and copyright, important questions remain unresolved. The extraterritorial nature of AI training, the absence of a coherent and workable licensing framework, and the fragmentation of copyright rules across Member States risk undermining the development of a competitive European AI industry. At the same time, concerns persist regarding the potential substitution of human creative works with AI-generated outputs.

Against this complex and evolving backdrop, the European Parliament has called for further legislative reflection at EU level to strike a balance between fostering AI-driven innovation and safeguarding Europe’s cultural and information sectors from misappropriation. Central to this debate is the identification of licensing and remuneration mechanisms capable of reconciling the competing interests at stake.

This CDS-CMPF talk will place these questions at the forefront, focusing on news and journalistic content as a case study.