Antonio Tejeda Encinas, CEO of Meta Channel Corporation and President of the Euro-American Committee on Digital Law – CEA Digital Law
A DIDACTIC BRIDGE
Imagine a gigantic library, full of books, songs, drawings and films created by people from all over the world. Now, imagine that we want to use that library so that intelligent machines, such as artificial intelligence systems, can learn from all that content. Thanks to that learning, these machines could help us solve complex problems or even create new things. But there is an important detail: those works have owners, and they cannot be used without their permission because they are protected by copyright.
Spain has decided to address this issue with an innovative solution: a legal framework that allows those machines to use the content of that great «library», but under clear rules. This framework respects creators’ rights and guarantees that those who do not wish to participate can say so. This approach, unique in the world, opens the door to a model that could inspire other countries in handling this crucial intersection between technology and creative rights.
CONCEPTUAL BASIS: SPAIN SETS A GLOBAL MILESTONE
Spain has taken a bold step by placing itself at the forefront of international artificial intelligence regulation through the Draft Royal Decree regulating extended collective licenses (ECL). This regulatory instrument, approved for urgent administrative processing on July 9, 2024, responds to the growing need for a legal framework that allows the development of AI while respecting intellectual property rights. This milestone not only positions Spain as a leader at the intersection of technology and regulation, but also opens a global debate on how to balance innovation and creative rights.
AI depends on massive access to data to train its models, a process known as text and data mining (TDM). Much of this data is protected by copyright, which creates a natural tension between technological progress and the protection of creators’ rights. Until now, this problem lacked comprehensive solutions. With this Royal Decree, Spain proposes a pioneering model that balances both interests, positioning itself as a global benchmark.
The core of this regulation is extended collective licenses, a model that allows collective management organizations to grant licenses for the use of works not only of their members, but also of non-member rightsholders, on the condition that the latter can exercise a right of exclusion («opt-out»). This mechanism reinforces creators’ autonomy and guarantees that their wishes are respected.
In addition, the Royal Decree includes strict transparency and oversight measures. Collective management organizations must operate under clear mechanisms regulated by the competent authorities to ensure fair management for both rightsholders and users of the works. Initially, the scope of application focuses on text and data mining for AI, but it could be extended in the future to sectors such as broadcasting, libraries and education.
CHALLENGES AND OBSTACLES TO OVERCOME
Despite its virtues, this regulation faces significant challenges that must be addressed to guarantee its success.
The right of exclusion, although essential, raises questions about its practical implementation. The procedures must be clear, accessible and effective for all rightsholders, including those who are not familiar with collective management organizations. If not managed properly, there is a risk that some creators will see their rights violated.
Another challenge lies in the position of non-member rightsholders. Although they are included within the scope of collective licenses, there must be solid mechanisms to guarantee fair and proportional compensation for the use of their works.
In addition, the impact on small and medium-sized enterprises (SMEs) cannot be ignored. The implementation of this regulation may generate significant administrative and operational costs, which could discourage innovation from smaller companies and favor large corporations that already have substantial resources.
SPAIN’S POTENTIAL AS A GLOBAL LEADER
Despite the challenges, the benefits of this Royal Decree are undeniable. First, it offers a clear legal framework that reduces legal uncertainty for technology companies and encourages investment in AI. In addition, it strengthens Spain’s position as a leader in the regulation of emerging technologies, consolidating its influence in the European and international arena.
From a legal perspective, this regulation is aligned with Directive 2019/790 of the European Parliament and of the Council on copyright in the digital single market. Its harmonization with the European regulatory framework not only guarantees consistency, but also makes Spain a model for other countries to follow.
Beyond its borders, the Royal Decree could become a global point of reference, demonstrating that it is possible to balance respect for copyright with the advancement of technology. The successful implementation of this regulation would set a precedent that could be replicated in other countries facing similar problems.
A GLOBAL OPPORTUNITY WITH LOCAL CHALLENGES
The Draft Royal Decree on extended collective licenses is not only a milestone for Spain, but also a starting point for a new era in the relationship between technology and intellectual property rights. Although challenges remain to be overcome, such as clarity in procedures, the protection of non-member rightsholders and accessibility for SMEs, this initiative has already put Spain on the map as a global benchmark.
Spain has shown that technological innovation and respect for copyright are not opposites, but elements that can coexist in a balanced regulatory framework. Now, the challenge is to implement this regulation successfully, ensuring that it becomes a fair, inclusive and functional model that inspires other nations.
The path that has begun is promising, and Spain has the unique opportunity to lead this global change in a field as crucial as artificial intelligence and intellectual property rights. This Royal Decree not only marks a step forward in AI governance, but also underscores the country’s commitment to the future.
