Data (Use and Access) Bill [HL]

Baroness Jones of Whitchurch Excerpts

Consideration of Commons amendments and / or reasons
Monday 12th May 2025 Lords Chamber

Motion on Amendments 2 to 31

[Baroness Jones of Whitchurch]

Moved by

That this House do agree with the Commons in their Amendments 2 to 31.

2: Clause 4, page 6, line 26, after “authority” insert “to do something with the business data”

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Motion on Amendment 32

[Baroness Jones of Whitchurch]

Moved by

That this House do agree with the Commons in their Amendment 32.

32: Clause 28, page 30, line 32, leave out subsections (3) and (4)

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Moved by

[Baroness Jones of Whitchurch]

That this House do agree with the Commons in their Amendment 33.

33: Clause 45, page 43, line 12, leave out subsection (6)

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Moved by

[Baroness Jones of Whitchurch]

That this House do agree with the Commons in their Amendment 34 and do propose Amendments 34B and 34C instead of the words so left out of the Bill—

34: Clause 56, page 54, line 1, leave out lines 1 to 3

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Moved by

[Baroness Jones of Whitchurch]

That this House do agree with the Commons in their Amendments 35 to 42.

35: Clause 56, page 58, leave out lines 10 and 11 and insert “obtain the consent of the Welsh Ministers in relation to any provision which would be within the legislative competence of Senedd Cymru if contained in an Act of the Senedd (ignoring any requirement for the consent of a Minister of the Crown imposed under Schedule 7B to the Government of Wales Act 2006).”

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Moved by

[Baroness Jones of Whitchurch]

That this House do agree with the Commons in their Amendment 43.

43: Clause 67, page 75, line 26, leave out “and that is conducted in the public interest”

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Moved by

[Baroness Jones of Whitchurch]

That this House do agree with the Commons in their Amendment 44.

44: Clause 95, page 120, line 31, leave out subsection (1)

[The Parliamentary Hnder-Secretary of State, Department for Business and Trade and Department for Science, Information and Technology (Baroness Jones of Whitchurch) (Lab)]

My Lords, with the leave of the House, I will speak also to Amendments 45 to 51 and 78. There has, quite reasonably, been significant interest in the topic of AI and copyright. This is a hugely important issue, and a complex one. I hope that noble Lords will bear with me as I set out the Government’s position, which has been the subject of some misrepresentation in recent reporting. I make it clear that this Bill does not introduce any changes to copyright law or wider intellectual property regulation. It does not introduce an opt-out system, nor does it contain any delegated powers that would allow such a system to be implemented. All existing copyright rules continue to apply to the use of material for AI training in exactly the way it did before the Bill was introduced.

This Government recognise the enormous economic and social value of our creative industries. We saw that just last week, as the nation came together to commemorate the anniversary of VE Day. Our creative sector entertains and informs us. It is the best of us as a nation. Our manifesto quite rightly pledged to work with the creative industries to unlock their potential after years of neglect. As noble Lords will know, the creative industries are worth £124 billion GVA and support 2.4 million jobs. Since 2010, they have grown at 1.5 times the rate of the rest of the economy.

The creative industries are one of our eight priority strands within our industrial strategy. In January 2025, as a first step in delivering that strategy, we announced: first, that the British Business Bank will increase its support for creative industry businesses to help them access the finances they need to grow; secondly, that UKRI will strengthen support for the sector to drive R&D-led growth; thirdly, that shorter-duration apprenticeships as a first step towards a flexible growth and skills levy that meets creative industry employers' needs will be introduced; fourthly, a commitment to devolve funding to six priority mayoral strategic authorities to drive the growth of creative clusters; and, fifthly, a £19 million package of funding for programmes including the UK Games Fund, the UK Global Screen Fund, music export growth schemes and create growth programmes. The Government will build on this support through the upcoming creative industry sector plan, which we publish very soon.

Our manifesto also recognises both the opportunities and the risks of AI. We pledged to take early action, and one part of this was the launch of a detailed consultation on the future of copyright reform to ensure that protections are fit for purpose as technology evolves and its use becomes more widespread. That consultation closed earlier this year, and we are now analysing a large volume of responses—something in the region of 11,500—and assessing the evidence that we have received. Our proposals will be based on that evidence and what works, rather than any preferred option. This will take time to do properly and, as such, the Government did not and do not believe that this Bill is the right vehicle to make any substantial changes to the law on this issue. Yes, we must act quickly, but we must also continue our thinking and engagement to ensure that the policy outcome is the one that best balances the potential of AI and the need to support rights holders.

Although we do not believe that this Bill is the right vehicle for wholesale change to copyright law, we understand the need to demonstrate that this Government, unlike others, want to follow best practice, engage meaningfully with all sides and come to the right conclusions. This is why the elected House took the decision to remove the relevant amendments passed during Lords stages and insert new provisions to demonstrate our commitment to legislate on AI in a fair, evidence-based way.

Of course we agree that there should be greater transparency about the use of protected material to train AI models. We agree that there should be more work done to identify the technical solutions that will empower rights holders to decide whether and how their material is used. We must continue to talk to all sides and to ensure that a reformed copyright regime is carefully thought through, effectively and robustly supported by the evidence. As our amendments set out, we will report on four substantive areas within 12 months. These will clearly signpost what we want to deliver and how we propose to do so. We will also carry out an economic impact assessment of the proposed changes once we have come to a settled view.

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[Lord Vaizey of Didcot (Con)]

I shall make a very brief speech. I stood up when the noble Lord, Lord Clement-Jones, stood up, but unfortunately, as so often in my life, he completely ignored me, so I will just slip in after him and just before our Front Bench. I declare my interest in the register as an adviser to ProRata.ai, which is a company that seeks to pay royalties to creatives for the use of their content in AI models. It was good to see not only the Secretary of State, Peter Kyle, standing at the Bar, but also the Creative Industries Minister, Chris Bryant, which shows that something is up. They were very clearly wanting to be seen by the 400 or so creatives who wrote to the newspapers over the weekend expressing their concerns about the Government’s AI legislation and also to seek, as we all do, to curry favour with the noble Baroness, Lady Kidron, who has led so well on so many of these issues.

As she was speaking and making the point that creatives and technologists are not apart at all, but are together, it reminded me that I became the Technology Minister in the Cameron Government because I was the Creative Industries Minister, and the reason I became the Technology Minister was because I was the only Minister in the Cameron Government in 2010 meeting the technology companies. The reason I was meeting the technology companies was because the technology companies were busily ripping off the intellectual property of the creative industries. At that time, in 2010, you would sit down with Google and say, “Anyone can search for any material on your website, come up with it illegally, stream it and download it without paying the creators of that material. What are you going to do about it?” Of course, they said, “We’re going to do absolutely nothing because you are just a little British Minister, and we only do what the White House tells us to do”.

The Labour Government had passed legislation that was concluded in the wash-up in 2010 that effectively criminalised, to coin a phrase, the teenager in their bedroom downloading music, just as perhaps some of us as teenagers might have taped music off the radio in the past. I knew when I became a Minister that that legislation was completely unworkable. It was pointless to be prosecuting teenagers when you should be taking on big tech. Actually, the music industry found a solution by using the Fraud Act and began to take action in the courts against websites that were completely ripping off IP. It allowed courts to order those websites to be blocked.

I also knew that there would be no solution until there was a commercial solution. In fact, that commercial solution has come about. In 2010, people were predicting the entire death of intellectual property, the death of the music industry, the death of the film industry and the death of television. They have never been healthier: there are commercial models because more people are prepared to pay a subscription to Spotify, Netflix or Amazon Prime to get great content for a reasonable price, so a commercial solution is possible when people work together.

It was interesting to hear the noble Lord, Lord Clement-Jones, talking about the opt-out model because it implies that you can have a conversation between big tech and creatives. The creatives can either opt out or opt in. We referred earlier to licensing deals. If anyone reads FT Weekend—in fact, everyone in this Chamber obviously reads FT Weekend as it is the Bible of the chattering classes—Sam Altman from OpenAI was featured in “Lunch with the FT”, an honour he shares with the noble Baroness, Lady Kidron. In fact, I texted her when she was in “Lunch with the FT” and said that it is better than a peerage. At the beginning of that lunch, it says that the FT has a licensing deal with OpenAI, so it is possible to have licensing deals.

What I think none of us can really stand is the utter hypocrisy of people saying that, for the national interest, we have to rip off intellectual property. It is completely hypocritical and nonsensical. You would not find a single tech chief saying, “I think it is fine if people take our patents because that is how you get economic growth. Just take my patent”. In fact, you will not find a CEO saying that. You will see them saying in court, “He’s ripped off my patent, and I want my money back”. That is intellectual property that big tech is prepared to fight for, yet big tech is still prepared to tell us, just as they told us 15 years ago, that they can grow only by ripping off the IP of the creative industries. Let us face it: there may be AI start-ups that need open source. I totally accept that. It is a complicated landscape, but we are still talking about big tech. We are talking about Microsoft, OpenAI, xAI and Meta. We are talking about the role of the United States. Donald Trump wants to make Hollywood great again. This is where he could start.

[Baroness Jones of Whitchurch (Lab)]

My Lords, I first thank all noble Lords from across the House for their many eloquent and well-made speeches. The Government share the passion displayed today. We all care about the creative sector and want to see it flourish. We all want to find ways to make that a reality. We are talking here about the practicalities of how we can do that in a proper way; that is what we are addressing today. Nobody doubts the fantastic contribution that the creative sector makes to the UK. I thought I had set out some of that in my opening speech, but I am very happy to confirm it again.

On the practicalities, the amendment tabled by the noble Baroness, Lady Kidron, sets out wide-ranging obligations on businesses that make AI models available in the UK and would require the Secretary of State to nominate a body to enforce them. I agree with the noble Baroness that the creative sector has always been an early adopter of technology, and that the creative and AI sectors go hand in hand. A number of noble Lords made that point, and made it well.

I also completely recognise the value generated by the creators—again a point well made by a number of noble Lords—and their great cultural and economic contributions to society. The noble Lords, Lord Black and Lord Berkeley, my noble friend Lord Brennan and many other speakers spoke about that.

It is the Government’s view—and, moreover, morally right—that creators should license and be paid for the use of their content. The Government have always been clear that we want to see more licensing by the AI sector. The obligations in the amendment of the noble Baroness, Lady Kidron, however, would affect a wide range of businesses and require detailed disclosure of information. This would include a mechanism to identify individual works, but it is very uncertain whether it would be possible to meet that requirement when a significant proportion of material on the internet does not have clear metadata to facilitate this. The scale of the impact on those businesses is unknown but, without a proper impact assessment, there is a real risk that the obligations could lead to AI innovators, including many home-grown British companies, thinking twice about whether they wish to develop and provide their services in the UK.

We agree that, if transparency obligations are to be created in this way, there will need to be provision for their oversight and enforcement, but that is not something that can be dropped on the first regulator that comes to mind. There is currently no body with the skills and resources to perform this function. We need a proper discussion about funding, clarity over what enforcement powers are required, and answers to a whole range of other questions.

It should also be noted that one of the main issues that creative industries are struggling with is enforcement of their rights under the current rules. As was said earlier—and I am happy to reiterate—we are not saying that the copyright laws are broken; at the heart of this is the question of enforcement.

Transparency would help with knowing what is being used, but that alone will not be a silver bullet for small creators and businesses seeking redress through our legal system. As many noble Lords will know, there are live court cases in train in the UK and other key jurisdictions. The Government, and I, recognise the urgency of the problem, as so fantastically put by the noble Baroness, Lady Benjamin.

This is why DCMS and DSIT Ministers are prioritising meetings with creative and AI stakeholders to discuss potential solutions as a top priority. Indeed, they held meetings and discussions with both sectors last September. We have moved quickly to consult, having hosted round tables and bilateral meetings with creatives and their representatives. These have been of great value and we will continue to hold those meetings.

However, all these moving parts mean that something needs to be developed as a full working approach. The amendment from the noble Baroness, Lady Kidron, does not offer an instant solution, instead asking the Government to come up with regulations in 12 months. We cannot make such significant interventions without properly understanding the impact. This is why our position is to report on four substantive issues within 12 months and set out our proposals in that time. As I said in my opening speech, our proposals will be based on the evidence from the 11,500 responses and, indeed, will concentrate on what works rather than any preferred option. As the noble Lord, Lord Tarassenko, said, the solution must indeed involve creators and AI developers being in the same room, and this is what we will endeavour to do.

I further agree with the noble Lord that AI should not become a way to whitewash copyright piracy. The Government support strong action against copyright piracy and we will continue to do so. I also agree that it is important to support transparency. I cannot say this strongly enough. Noble Lords have seemed to suggest that we are not taking that issue seriously. Of course we are. The Government fully support and are encouraged by the work of the IETF and other fora developing new standards to help identify metadata, which will make this easier.

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Moved by

[Baroness Jones of Whitchurch]

That this House do agree with the Commons in their Amendment 45.

45: After Clause 134, insert the following Clause—
“Economic impact assessment
(1) The Secretary of State must, before the end of the period of 12 months beginning
with the day on which this Act is passed—
(a) prepare and publish an assessment of the economic impact in the United Kingdom of each of the four policy options described in section B.4 of the Copyright and AI Consultation Paper, read with relevant parts of section C of that Paper (policy options about copyright law and the training of artificial intelligence models using copyright works), and
(b) lay a document containing the assessment before Parliament. Data (Use and Access) Bill [HL] 7
(2) The document may include an assessment of the economic impact in the United Kingdom of policy options which are alternatives to the options described in subsection (1)(a).
(3) An assessment included in the document must, among other things, include assessment of the economic impact of each option on—
(a) copyright owners, and
(b) persons who develop or use AI systems, including the impact on copyright owners, developers and users who are individuals, micro businesses, small businesses or medium-sized businesses.
(4) In this section—
“AI system” means a machine-based system that, from the input it receives, can infer how to—
(a) generate predictions, digital content, recommendations, decisions or other similar outputs, or
(b) influence a physical or virtual environment, with a view to achieving an explicit or implicit objective;
“the Copyright and AI Consultation Paper” means the command paper “Copyright and AI: Consultation”, numbered CP1205, published on 17 December 2024;
“copyright owner” has the same meaning as in Part 1 of the Copyright, Designs and Patents Act 1988;
“develop” an AI system means carry on an activity involved in producing the system, such as (for example) designing, programming, training or testing the system (and related terms are to be interpreted accordingly); “digital content” means data which is produced and supplied in digital form; “medium-sized business” means a business with at least 50 but fewer than 250 staff;
“micro business” means a business with fewer than 10 staff;
“small business” means a business with at least 10 but fewer than 50 staff;
“use” an AI system means instruct an AI system to generate outputs or to influence an environment (and related terms are to be interpreted accordingly).”

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Moved by

[Baroness Jones of Whitchurch]

That this House do agree with the Commons in their Amendment 46.

46: After Clause 134, insert the following Clause—
“Report on the use of copyright works in the development of AI systems
(1) The Secretary of State must, before the end of the period of 12 months beginning with the day on which this Act is passed—
(a) prepare and publish a report on the use of copyright works in the development of AI systems, and
(b) lay the report before Parliament.
(2) The report must consider—
(a) the four policy options described in section B.4 of the Copyright and AI Consultation Paper, read with relevant parts of section C of that Paper (policy options about copyright law and the training of artificial intelligence models using copyright works), and
(b) such alternative options as the Secretary of State considers appropriate.
(3) The report must consider, and make proposals in relation to, each of the following—
(a) technical measures and standards (for example, measures and standards
concerned with metadata) that may be used to control—
(i) the use of copyright works to develop AI systems, and
(ii) the accessing of copyright works for that purpose (for example, by web crawlers);
(b) the effect of copyright on access to, and use of, data by developers of AI systems (for example, on text and data mining), including the effect on developers who are individuals, micro businesses, small businesses or medium-sized businesses;
(c) the disclosure of information by developers of AI systems about—
(i) their use of copyright works to develop AI systems, and
(ii) how they access copyright works for that purpose (for example, by means of web crawlers);
(d) the granting of licences to developers of AI systems to do acts restricted by copyright, including the granting of licences by and to individuals, micro businesses, small businesses and medium-sized businesses.
(4) In preparing the report, the Secretary of State must consider the likely effect of proposals, in the United Kingdom, on—
(a) copyright owners, and
(b) persons who develop or use AI systems, including the likely effect on copyright owners, developers and users who are individuals, micro businesses, small businesses or medium-sized businesses.
(5) In preparing the report, the Secretary of State must have regard to, among other things, the Consultation Paper responses.
(6) The Secretary of State may comply with this section by preparing and publishing two or more reports which, taken together, satisfy the requirements in this section.
(7) In this section—
“Consultation Paper responses” means responses to the Copyright and AI Consultation Paper received by the Secretary of State on or before 25 February 2025;
“copyright” means the property right which subsists in accordance with Part 1 of the Copyright, Designs and Patents Act 1988;
“copyright work” has the same meaning as in Part 1 of the Copyright, Designs and Patents Act 1988;
“web crawler” means a computer program that obtains data from websites in accordance with instructions and that can autonomously determine which websites to visit.
(8) Terms used in this section and in section (Economic impact assessment) have the same meaning in this section as they have in that section.”

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Moved by

[Baroness Jones of Whitchurch]

That this House do agree with the Commons in their Amendments 47 and 48.

47: Page 170, line 2, leave out Clause 135

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Moved by

[Baroness Jones of Whitchurch]

That this House do agree with the Commons in their Amendment 49.

49: Page 171, line 15, leave out Clause 137

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Moved by

[Baroness Jones of Whitchurch]

That this House do agree with the Commons in their Amendments 50 and 51.

50: Page 171, line 37, leave out Clause 138

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Moved by

[Baroness Jones of Whitchurch]

That this House do agree with the Commons in their Amendment 52.

52: Page 173, line 13, leave out Clause 140

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Moved by

[Baroness Jones of Whitchurch]

That this House do agree with the Commons in their Amendment 54.

54: Clause 141, page 173, line 35, leave out from beginning to end of line 8 on page 174

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Moved by

[Baroness Jones of Whitchurch]

That this House do agree with the Commons in their Amendment 55.

55: Clause 141, page 174, line 26, at end insert—
“(7A) It is a defence for a person charged with an offence under this section to prove that the person had a reasonable excuse for creating the purported intimate image.”

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Moved by

[Baroness Jones of Whitchurch]

That this House do agree with the Commons in their Amendment 56.

56: Clause 141, page 174, line 29, at end insert—
“66EA Requesting the creation of purported intimate image of adult
(1) A person (A) commits an offence if—
(a) A intentionally requests the creation of a purported intimate image of another person (B) (either in general or specific terms),
(b) B does not consent to A requesting the creation of the purported intimate image, and
(c) A does not reasonably believe that B consents.
(2) A person (A) commits an offence if—
(a) A intentionally requests that, if a purported intimate image of another person (B) is created, it includes or excludes something in particular (whether relating to B’s appearance, the intimate state in which B is shown or anything else),
(b) B does not consent to A requesting the inclusion or exclusion of that thing, and
(c) A does not reasonably believe that B consents.
(3) References in this section to making a request (however expressed) include doing an act which could reasonably be taken to be a request (such as, for example, indicating agreement in response to an offer or complying with conditions of an offer).
(4) References in this section to making a request (however expressed) are references to—
(a) making a request directed to a particular person or persons, or
(b) making a request so that it is available to one or more persons (or people generally), without directing it to a particular person or persons.
(5) References in this section to consent to a person requesting something are—
(a) in a case described in subsection (4)(a), references to consent to a request being made that is directed to the particular person or persons, and
(b) in a case described in subsection (4)(b), references to consent to a request being made so that it is available to the person or persons (or people generally), as appropriate.
(6) An offence under this section is committed—
(a) regardless of whether the purported intimate image is created,
(b) regardless of whether the purported intimate image, or the particular thing to be included in or excluded from such an image, is also requested by another person, and
(c) regardless of where in the world the person or persons mentioned in subsection (4)(a) and (b) is or are located.
(7) It is a defence for a person charged with an offence under this section to prove that the person had a reasonable excuse for making the request.
(8) A person who commits an offence under this section is liable on summary conviction to imprisonment for a term not exceeding the maximum term for summary offences or a fine (or both).
(9) In this section, references to a purported intimate image, to creating such an image and to a person shown in an intimate state have the same meaning as in section 66E.”

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Moved by

[Baroness Jones of Whitchurch]

That this House do agree with the Commons in their Amendments 57 to 79.

57: Clause 141, page 174, line 30, leave out “soliciting” and insert “requesting”