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Writers’ Union Cautiously Optimistic About Emerging AI Licensing Market

The Writers’ Union of Canada

Press Release

The Writers’ Union of Canada (TWUC) is studying a proposed agreement between select nonfiction authors, HarperCollins, and a so-far undisclosed technology company to license full texts for the purpose of training artificial intelligence. As some TWUC members are affected, the Union has been directly consulted on the proposition.

“My mood is cautious optimism,” remarked TWUC Chair, Danny Ramadan. “We’ve been talking about — and fighting against — illicit use of authors’ work for AI training for years now, so the appearance of a licensing proposal from an AI company is somewhat refreshing.”

While social media reaction to the deal has been mixed, those on the front lines of the AI fight see the HarperCollins work on licensing as a welcome development. As widely reported, the agreement would be time-limited to three years, and requires an explicit opt-in from authors. And despite insistence by many in tech that these licensing rights would be of insignificant value, the offer of $5000 per book is a solid opening bid. As a one-time addendum to existing contracts, this deal would not set an industry ceiling on price.

These details show, as writer organizations have long insisted, that control over creative work in the AI space is a right controlled by the author alone, and that our work has real value to those who seek to use it in their own work.

“I know many authors’ first reaction to another AI story will be ‘ugh,’” continued Ramadan. “That’s my first reaction as well. But artificial intelligence is here; it’s not going away; and it has already grabbed so much creative work without permission. Establishing a working rights-licensing marketplace is key to the future of professional creation.”

There is much to question and reject in the proposed HarperCollins agreement. The fact that the AI company remains unnamed is unacceptable, and standard contract terms for subsidiary rights do not justify a 50/50 split in royalties between author and publisher. The author has done a larger share of the work on the text, and should benefit from a larger royalty share. TWUC encourages HarperCollins to re-examine these details before finalizing any agreement.

Given Canada’s terrible recent history of market failure in educational licensing — a failure linked directly to weak legislation and a lack of meaningful regulation — this high-profile licensing proposal shows the way for an immediate solution. Canada’s authors are prepared to license our work for all manner of uses. The sector is open for business. All that’s required is serious government attention to the market, and genuine will to create solutions.

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For additional information:
John Degen, Chief Executive Officer
The Writers’ Union of Canada
jdegen@writersunion.ca

DATE: November 20, 2024