In California, a new bill is generating controversy among legislators and technology developers. A.B. 412, which is argued to be a measure to increase transparency in the use of artificial intelligence (AI), could disproportionately favor large companies, putting startups and small developers in a precarious situation.
Although the bill has undergone several amendments, the criticism has not ceased, pointing out that, far from improving, it has become more restrictive. Its approval could have a negative impact on the local economy, limiting innovation and competitiveness, which are essential for the development of new technologies.
Essentially, A.B. 412 introduces a “reading list” that would allow large companies to file copyright lawsuits in state courts. This move comes at a time when federal courts are still determining how to apply existing copyright laws to emerging generative AI technologies. Among the new requirements, there is an obligation for developers, including those from small companies, to maintain records of training materials that are registered or pre-registered with the U.S. Copyright Office.
The additional requirements include identifying “pre-registered” copyrights and the need to register unprotected works that may be under exclusive rights. The consequences for failing to comply with these regulations are severe, including fines that can reach up to a thousand dollars per day for each violation, placing disproportionate financial pressure on small developers who could face bankruptcies even for unintentional mistakes.
The true aim behind this regulation appears to be the creation of a framework that facilitates legal actions by large companies against software developers, regardless of their size. This could result in the elimination of competition, as small AI creators would be forced to meet the same demands as tech giants like Google or Meta. Furthermore, A.B. 412 could turn California into an environment where only major players can survive, stifling diversity and innovation.
As if that weren’t enough, the law promises to create confusion by addressing an area already embroiled in legal disputes at the federal level. Courts are evaluating fair use in the context of AI, and state intervention could complicate this situation even further.
In short, A.B. 412 appears to be a response to a problem that may not exist, and while it aims to address concerns about copyright, it could actually facilitate market domination by large companies, limiting opportunities for consumers and small creators. California citizens are being urged to express their concerns to their legislators, warning about the risk this legislation poses to the future of small businesses in the state.
Referrer: MiMub in Spanish
