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Copyright's Last Stand: Building AI's New Rules

Copyright laws were built for books, not AI. Discover how creators and AI companies can move beyond lawsuits to build a new system where everyone wins. From protection to participation - the future is

In the midst of the AI glory days, in a room buzzing with the impact and momentum of the industry, no one seemed to care about copyrights except the speaker on the Disrupt stage.

While watching Martin Casado of A16Z deftly handle questions about AI regulation – he stopped me by noting the importance of copyright to regulation.

The room packed with the usual entrepreneurs, investors, and journalists eager to hear how Silicon Valley will lead the AI revolution. But something wasn't sitting right with me.

"Why do tech companies treat AI training like a copyright-free zone?"

I finally asked, cutting through the careful corporate speak.

The room went quiet. Casado's response was telling - he immediately reached for the comfortable analogy of Napster and how peer-to-peer sharing eventually led to Spotify and Apple Music.

As someone who lived through that transformation, I knew the punchline he was missing: musicians now earn a fraction of what they once did.

We're about to repeat history, but this time it's not just music - it's every form of human creativity.

Copyright is The Castle, AI has Wings

Copyright law is like a rundown medieval castle. For centuries, it protected creative works with its stone walls, drawbridges, and vigilant guards.

Then AI showed up - not with battering rams, but with wings. Our carefully constructed walls became meaningless overnight.

"The old rules weren't built for machines that can process centuries of human creativity before breakfast,"

"We're using rules written for printing presses to regulate digital shapeshifters."

What if one day a talented artist receives a cease-and-desist letter for AI-generated art that infringes on her own style.

It’s possible to be legally challenged over AI mimicking her creativity, while the same AI had likely trained on her work without permission or compensation.

The Breaking Point Is Here

The collision between old laws and new technology isn't theoretical - it's happening right now. At TechCrunch Disrupt, I watched this play out in real time.

When tech leaders discuss AI training, they treat copyrighted work like it's a free-for-all resource.

But for creators watching their life's work being ingested into AI models without compensation or consent, it's not so simple.

This is where we hit two colliding truths:

Engineers say: "Input isn't copyrightable"

Creators say: "That's my life's work"

Both are right. Both are wrong. And that's exactly why we need a new approach.

Beyond Protection: The Participation Economy

Copyright law was built for a world of physical delivery - books, records, paintings you could hold in your hands.

It was about protecting specific copies from unauthorized duplication.

But in today's digital age, where AI can process and transform millions of works instantly, that framework isn't just outdated - it's obsolete.

The solution isn't more lawsuits or stronger copyright walls. It's about building a new system that benefits both creators and AI development.

  • LLMs need quality training data to build better language models.

  • Creators need fair compensation and recognition for their work.

  •  Instead of seeing these as competing interests, we can align them.

I've developed two potential frameworks to help creators and AI interact. Not through courts and litigation, but through code and collaboration.

These solutions focus on measuring and rewarding actual influence - how much a creator's work contributes to AI outputs and model improvement.

The Token Economy: Rethinking Creative Value

Thinking about the comparison between today's AI to the Napster era, it crystallized something for me.

We're not just facing a copyright problem - we're facing a value recognition problem.

But unlike the music industry's painful transition to streaming, we have a chance to build something better from the start.

The Token Economy model I'm proposing treats creative works like living assets rather than static files. Here's how it works:

Using the code below and Claude, I was able to analyze content and it’s output.

Influence Tracking in Action

Imagine each piece of creative content broken down into tokens - not just words or images, but meaningful building blocks that carry their influence forward.

Every time an AI model learns from or uses these tokens, it creates a trackable imprint.

This isn't theoretical - we're already seeing similar principles at work in how transformer models process and weight different inputs.

Smart Compensation That Scales

Let's talk real numbers:

  • Training an AI model costs roughly millions to hundreds of millions:

  • Current licensing deals max out around $20-100 million total for larger businesses

  • Most creators earn pennies per view/use of their content

Instead of flat licensing fees or per-use payments, make compensation dynamic:

  • High-impact content (like authoritative research papers) earns premium compensation

  • Generic content (like basic product descriptions) receives minimal compensation

  • Unique creative works (like distinctive writing styles or innovative code) earn mid-tier compensation

The Efficiency Breakthrough

This model doesn't just serve creators - it makes AI development more efficient. Here's why:

  • Better training data leads to better models

  • Transparent compensation reduces legal risks and costs

  • Standardized systems lower content acquisition expenses

What if compensation was based on actual influence and value created?

The metric would serve the business and a select group of creators would be rewarded financially, others with credits and bonuses.

Improving AI Training with Fair Participation

When we talk about LLMs and training data, quality matters more than quantity. Right now, AI companies are scraping everything they can find, treating all content as equal.

But we know that's not true. Some content - whether through its clarity, originality, or influence - contributes more to model performance than others.

Performance-Based Value Creation

Here's what happens when we shift from protection to participation:

  1. Value Tiers That Make Sense:

  • Research papers that improve model accuracy

  • Creative works that enhance output quality

  • Technical content that improves specialized knowledge

  • Cultural works that help models understand context

Each tier gets compensated based on measurable improvements in model performance. It's not just about paying for content - it's about investing in quality.

The Technical Framework

I've looked at a  proof-of-concept system that tracks how AI models pay attention when they create.

Think of it like a heart rate monitor for creativity. Every time the AI focuses on certain parts of its training, we can trace those patterns. This isn't perfect attribution, but it's measurable impact.

The code does something fascinating:

  • Watches attention patterns across neural networks

  • Identifies distinctive signatures in content influence

  • Creates trackable metrics for compensation

Download the Code

Download the EP 71 Code

Download the Claude discussion PDF

Claudecode Prompts And Background Information
121KB ∙ PDF file
Download
Prompts and Claude Responses for code to track content. The Code is in the button above.
Download

Real-World Applications

We're already seeing similar ideas emerge:

Digital Influence Rights: Beyond Traditional Copyright

The challenge with traditional copyright isn't just technological - it's conceptual.

We're trying to apply rules meant for copying books to systems that transform and recombine information in entirely new ways.

Instead of fighting this transformation, we need to embrace and shape it.

What Are Digital Influence Rights?

Digital influence rights represent a fundamental shift in how we think about creative value in the AI era. Instead of focusing on preventing copying, these rights center on:

  • Measuring how content shapes AI outputs

  • Tracking the impact of creative work on model performance

  • Creating value through influence rather than restriction

Core Mechanics

  1. Value-Based Tiers

  • High-impact content earns premium rights

  • Cultural significance affects earnings

  • Dynamic pricing based on actual use and influence in improving AI outputs

  1. Creator Benefits Program

  • AI system credits that grow with contribution

  • Premium access rights to AI tools

  • Direct influence over future AI training decisions

  1. Democratic Access

  • Small creators can participate without legal overhead

  • Impact-based earnings tracked through code

  • Technical solutions replace legal battles

Technical Implementation

The system works by:

  • Tracking attention patterns in neural networks

  • Measuring how different inputs affect model performance

  • Creating transparent metrics for value distribution

While the code for these systems is still emerging, we're seeing similar concepts being developed across the industry.

For those interested in learning more about these developing technologies, I recommend following:

·         Technical discussions about AI attribution systems

·         Open source AI model development communities

·         Creator rights organizations working on AI attribution

·         Companies developing content credentialing systems

Tracing AI's Creative DNA: Starting the Conversation

When I talk about tracking creative influence in AI, some say it's impossible - like trying to find a specific drop of water after it's been poured into the ocean.

They're not wrong about the complexity, but they're missing an important point.

We don't need perfect attribution to start building better systems.

Netflix doesn't know exactly why you watched that show, but they can make educated guesses about what influences your choices.

Spotify doesn't perfectly understand music but can track patterns of influence and similarity well enough to build a business model.

I'm not an engineer, but I've been exploring these concepts with AI tools to understand the possibilities.

The proof-of-concept ideas I'm working on are simple starting points - ways to begin thinking about how we might track and value creative influence in AI systems.

 It's like watching the attention patterns of AI models - where do they focus? What influences their outputs?

This isn't about building a perfect system. It's about starting a conversation and exploring practical first steps toward fair attribution and compensation.

The New Creator Economy: Participation Over Protection

We're not just facing a copyright crisis - we're witnessing the birth of a new creative economy.

One where the question isn't whether AI will use your work, but how you'll participate in shaping its development.

When an AI model ingests creative work, that influence disappears into a black box.

Creators lose connection to their work's impact, while AI companies gain value without sharing it. But it doesn't have to be this way.

Instead of focusing on restricting AI's use of creative work, we need to build systems that:

  • Track real influence over AI outputs

  • Reward meaningful contributions to model improvement

  • Create new opportunities for creator participation

This isn't about stopping AI - it's about making it work better for everyone.

When creators see and benefit from their influence on AI systems, they're more likely to contribute quality work. When AI companies measure and reward valuable contributions, they build better models.

By measuring influence and creating clear value pathways, we can build a creative economy that works in the age of AI.

Building Tomorrow's Rules: Performance Over Protection

Traditional copyright law looks increasingly like a relic - rules written for printing presses trying to govern quantum computers.

The solution isn't more restrictive laws. It's smarter systems.

The core challenge is clear. Current copyright frameworks focus on controlling copies, but AI doesn't just copy - it learns, transforms, and generates.

We need rules built for this new reality. Rules that focus on:

  • Measuring real impact rather than restricting access

  • Rewarding performance instead of policing permission

  • Creating value through participation, not protection

We're seeing the first signs of this transformation in how AI companies approach training data.

The question isn't whether they'll use creative work - it's how to make that use fair and beneficial for everyone involved.

The future won't be built in courtrooms. It will emerge from new systems that:

  • Track and reward creative influence

  • Enable small creators to participate without legal battles

  • Allow innovation and fairness to coexist through smart technology

The question isn't if we'll move beyond traditional copyright - it's how quickly we'll build something better.

AI for Creators and Developers - A Model for Discussion

Opening New Possibilities: Beyond Copyright Litigation

"Amazing stuff doesn't come from the middle soup that generative AI will create."

This is crucial to understand - we're not just talking about compensation, we're talking about finding those edge cases that create extraordinary results.

Let me be clear about where we stand:

"We don't need better copyright laws.

We need a new system that turns creators from adversaries into stakeholders."

The question isn't whether AI will use your work - it's whether you'll help shape how this happens.

Here's what's possible right now:

For Creators:

"You won't immediately get paid for AI using your work, but you will have a way of understanding how it does."

This transparency is the first step toward fair participation.

For Engineers:

Yes, we recognize the limitations of attention-based attribution. But that's exactly why we need your help to:

 "make something better because we could do things here that could really help, not only help creators compensate them, but also find those edge cases that make the amazing stuff."

A System of Aligned Incentives:

Instead of random licensing fees, imagine a system where:

  • "Usage influence tracking" quantifies how creator input affects specific outputs

  • Higher influence leads to higher credits, creating relevance-based compensation

  • "Think of this as intellectual currency" - creators don't lose control, they gain influence

"This isn't about lawsuits. It's a tech-enabled system where content usage aligns with incentives for creators."

Building Future to Cooperate instead of compete:

  • Value-based tiers recognizing different levels of impact

  • An AI-backed loyalty program offering both monetary and non-monetary rewards

  • Leveling the playing field for smaller creators through collective impact

We're witnessing the birth of something new - a system where creators and AI can grow together rather than fight each other.

Instead of wasting resources on copyright litigation - which requires deep pockets and armies of lawyers - we can build technology that aligns incentives, tracks influence, and rewards meaningful contributions.

The future isn't about protecting content from AI; it's about participating in how AI evolves.

Whether you're a creator wondering about your AI influence or an engineer interested in these technical challenges, there's a role for you in shaping this future.

The tools are emerging. The possibilities are clear.

Now it's time to move beyond the copyright battles of yesterday and build something better together - a system that turns creators from adversaries into stakeholders in AI.

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The AI Optimist
The AI Optimist
Moving beyond AI hype, The AI Optimist explores how we can use AI to our advantage, how not to be left behind, and what's essential for business and education going forward.
Each week for one year I’m exploring the possibilities of AI, against the drawbacks. Diving into regulations and the top 10 questions posed by AI Pessimists, I’m not here to prove I’m right. The purpose here is to engage in discussions with both sides, hear out what we fear and what we hope for, and help design AI models that benefit us all.
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