The significant impact of fast-developing artificial intelligence (AI) technology on various sectors of society calls for a careful response from governments worldwide.

This is particularly crucial in Hong Kong, which aims to be an international innovation and technology center, as well as a regional hub for intellectual property trading.

Many initiatives are underway, establishing new policies, guidelines, and regulations, attracting talent, and providing necessary infrastructure.

Amending copyright laws to address AI development issues is essential. A two-month consultation launched by the government last month is a welcome step.

Proposals are outlined in a 52-page document, inviting stakeholders to express their opinions candidly. Officials should approach the consultation with an open mind and be receptive to feedback.

The paper covers copyright protection, liability for infringement, exemptions, and related issues.

A recommendation that existing laws suffice to safeguard works attracting copyright and liability for infringements avoids confronting some of the more challenging issues arising from new technology, such as generative AI.

Some might argue that the government has sidestepped the issue.

The Copyright Ordinance broadly covers such works, specifically addressing computer-generated works. However, the question of who owns the copyright of AI-generated content—the technology developer or the user—remains for the courts to decide on a case-by-case basis.

There is merit in the argument that the decision hinges on the facts of each case, and rigid rules may not be suitable.

Nonetheless, there is room for further discussion on whether greater clarity can be provided. The proposals also conclude that amending existing legislation on liability is unnecessary.

The most significant suggestion is the introduction of copyright exemptions for text and data mining, including the development of generative-AI tools, which often rely on large quantities of data, including works covered by copyright. The exemptions would be based on ‘reasonable use.’

This sensible step aims to encourage AI development and use in Hong Kong, but it must be handled carefully. The legislation will need to fulfill the government’s promise to strike the right balance between the rights of users of copyrighted material and those of the owners. Achieving this balance will not be easy.

The consultation process must forge a consensus on the way forward, ensuring that new legal amendments provide clarity while carefully weighing competing interests.