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March 25, 2025

Blog, Latin America / GRULAC

Legislative Initiatives on Copyright in Brazil in 2024

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Allan Rocha de Souza; Luca Schirru; Leon Queiroz Ramos  In Brazil, 2024 has been quite eventful regarding copyright, with the debate seemingly returning to center stage. The Senate’s approval of Bill 2338/23 (AI Bill) and Bill 2331/22 (audiovisual quotas on video-on-demand services), along with the enactment of Law 14.852/24 (Videogames Act), are the three major developments. However, no progress was made on Bill 2630/20 in the Senate (the so-called “Fake News Bill”) or Bill 2730/19 (copyright reform Bill) in the House of Representatives. Unsurprisingly, the most attention-grabbing development, which sparked numerous discussions and seminars, was the approval of the AI Bill by the Senate on December 10, 2024. This was mainly due to the uncertainties and tensions surrounding Artificial Intelligence (AI) systems and the sensitive nature of the bill’s provisions on copyright. The Senate also approved Bill 2331/22, which introduces a fee for the commercial exploitation of audiovisual works in the digital environment—an initiative that is likely to impact user-generated content. Additionally, the Videogame Act (Law 14.852/24) was enacted, establishing a regulatory framework for video games in Brazil, including their normative classification as “interactive audiovisual works developed as computer programs.” AI and copyright The AI Bill (PL 2338/23), which establishes the regulatory framework for AI systems in Brazil, was approved by the Senate on December 10, 2024, and will now be reviewed by the House of Representatives. It is worth noting that the initial regulatory proposal was approved in the form of Bill 21-A/20 by the House of Representatives on September 29, 2021, but was later superseded by the Senate Bill.  In its structure, logic, and overall approach, it mirrors the European AI Act, representing a clear example of the “Brussels Effect.” However, such mirroring may be excessive and should not overlook national particularities and specific challenges. The relationship between copyright and AI is complex and only gained national prominence in April 2024, when a dedicated chapter was incorporated into the Bill. As with any subject of this level of complexity and uncertainty (and all matters related to AI regulation fall into this category), there are always aspects that could and should be improved. These aspects were highlighted in the study “Artificial Intelligence and Copyright: Contributions to the Regulatory Debate in Brazil“ . Research in general—and text and data mining (TDM) in particular—received insufficient attention that is not able to ensure that research can continue without serious risks and costs, which could hinder this critical activity for the country. These regulatory oversteps include: (i) limiting research to institutional settings, (ii) prohibiting public-private research collaborations, and, most importantly, (iii) requiring that training data be “lawfully accessed,” a condition with significant implications. Without cutting-edge research, the country risks stagnation. Moreover, these provisions will impact all data-intensive research activities, across all sectors, regardless of whether they involve AI system development. The remuneration and licensing obligations established for training AI systems with copyrighted works, while reasonable in cases of commercial uses with substitutive effects, impose high entry costs on domestic companies. As a result, the primary beneficiaries will be large technology players and database holders (mainly major foreign corporations) that own sufficiently large collections of copyrighted works to serve as training datasets for AI systems. Consequently, this framework will undoubtedly hinder national innovation and the development of AI systems that would reflect Brazilian characteristics — all of that without effectively ensuring compensation for authors and artists, which was supposed to be its main justification! As approved by the Senate, these constraints on research and national innovation will impact virtually all economic, industrial, and public interest activities that rely on or require large volumes of information and data—whether for fundamental research or the development of AI systems tailored to national demands. This will also affect corporate customization and internal systems development, as copyright protection extends to text, sounds, and images. Consequently, any AI system that processes these types of content will be affected. Videogames Act Published on May 3, 2024, Law 14.582/2024 (officially ‘Legal Framework for the Video Game Industry’) establishes the Videogame Act, which regulates the “manufacturing, importation, commercialization, development, and commercial use of video games” in Brazil (Article 2). It does so by establishing guidelines and principles for their use (Article 6), as well as proposing measures for fostering investment and development in the sector (Article 4). Additionally, the law explicitly excludes games involving betting with prizes, random outcomes, commercial promotions, or lottery-based modalities (Article 5, sole paragraph). The legislation introduces concrete incentives for national video game production by recognizing the sector as part of the cultural industry (Article 12), making it eligible for tax benefits and public funding, similar to other cultural goods. Furthermore, classifying investments in video game development as “investments in research, development, innovation, and culture” (Article 11, sole paragraph) will likely increase the availability of resources and foster growth in the sector. An interesting aspect of the law is the facilitation of video games for educational and training purposes (Article 10), particularly through the development of public policies within the framework of the National Digital Education Policy and the creation of a repository for games developed with public funds. Equally relevant for research and development is the possibility of state support for research, development, and improvement of educational video games, including the creation of a dedicated platform for educational games (Article 13, §1, IV). However, all of these policies are optional rather than mandatory, as they arguably should be. One of the law’s key contributions is its definition of “video game,” which directly references copyright legislation. It classifies video games as “an interactive audiovisual work developed as a computer program” (Article 5.1) and links their protection to the Software Law (Law 9.609/98), which has distinct provisions compared to the general Copyright Law (Law 9.610/98). Although it does not directly address copyright, the law provides definitions for multiple roles that different professionals can assume in the creation and production of video games. These include potential authors, such as visual artists (Article 7, §3, I), audio designers for games (Article

Africa: Copyright & Public Interest, Blog

INTERNATIONAL CONFERENCE IN SOUTH AFRICA HIGHLIGHTS THE URGENCY OF COPYRIGHT REFORMS

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By ReCreate South Africa The cost of excluding billions of people in Africa and the Global South from access to knowledge could be huge for future generations. Knowledge-sharing in Africa is not always transactional, and the existing IP and copyright paradigms are not working well for creators or audiences on the continent. Creators are often poorly remunerated and in many cases audiences and students cannot afford access to knowledge and entertainment. Some global corporations take an extractive and exploitative approach to African creativity. Africa needs a new knowledge governance system to take into account the role of traditional and indigenous knowledge. These were the conclusions of an international conference entitled “Copyright and the Public Interest: Africa and the Global South” held last month in South Africa. The convenors were ReCreate South Africa, a coalition of creators and users of copyright material and the conference took place at the University of the Witwatersrand, Johannesburg (3 February), at the University of Cape Town Library (5 February) and at Innovation City (6 February). This conference was a follow-on from ReCreate’s inaugural conference on the “Right to Research in Africa” held at the University of Pretoria and the University of Cape Town in January 2023. Conference partnered with Program on Information Justice and Intellectual Property (PIJIP), the intergovernmental organisation, South Center, the University of Cape Town’s IP Unit, Mandela Institute, Law School and more. The conference was made possible by PIJIP and Arcadia, as well as Open Air. You can watch the full conference sessions online. IP as a tax on African Creativity: Protecting the Livelihoods of Creators In his opening input, Ben Cashdan, convener of ReCreate South Africa and former economic advisor to President Nelson Mandela, said that IP royalties are a de facto tax on Africa. “Income from IP royalties on all creativity, on all inventions around the world, topped $1 trillion in the past 24 months for the first time, and the United States gets about $130 billion of that. Africa gets a tiny fraction. Could that be because we don’t have creatives? Could that be because we don’t have actors, writers, musicians? Obviously not. The system operates in such a way that we don’t get the fruits of our labor here in this country and on this continent.” South African singer Mercy Pakela, whose music topped the charts in the 1980s, recounted how she had signed with record labels so that her music could be heard by music lovers around the world, but over 40 years later she still feels she has not received fair remuneration. Pakela said “I wish I knew then what I know now because then I did not know that it was business. I just wanted to be on stage. I thought it was just about talent.” Jack Devnarain, Chairperson of the South African Guild of Actors highlighted that many performers in Africa die poor due to the power imbalance between artists and their distributors or rights owners. He pointed a finger at those whose business models restrict the livelihoods of African performers and who are opposed to copyright reform.  “There are people, particularly the American-based organizations, the corporate giants in the Global North that are working very hard, and I’m talking about the publishers, the studios, the streamers, the broadcasters, that do not want South African actors to have a royalty earning right.” South Africa’s CAB and Why Teachers Need Fair Use The Copyright Amendment Bill (CAB), passed by Parliament in South Africa, but still awaiting the President’s signature, aims to solve the problem of exploitation of artists by introducing a right to fair royalties or equitable remuneration. The CAB also broadens access to knowledge for communities. Hence it addresses the needs of both constituencies, creators and users. The President has referred the Bill to the Constitutional Court over concerns that it may lead to arbitrary deprivation of property of rights holders. Advocate Iain Currie, lawyer for ReCreate raised questions around whether Intellectual Property is property in the traditional sense and also challenged the view that adjustments to Copyright laws in the public interest are arbitrary.  One of the main objectives of the CAB is to ensure that teachers and learners have access to educational materials, which is clearly a public interest goal. According to Dr Mugwena Maluleke, President of Education International, “there is a shocking shortage of 44 million teachers worldwide. A major catalyst for this shortage is the inability to attract and retain teachers due to inadequate conditions for providing quality teaching,” including a shortage of textbooks and learning materials. “Fair use in education is the key that unlocks the door to a world of knowledge and creativity, by allowing educators to utilize copyrighted materials in their teaching.”  Moreover “Fair copyright legislation is essential to enabling teachers to adapt and use the material and reach an increasingly diverse student body.”  Maluleke is also General Secretary of SADTU, the largest teachers union in South Africa, with a membership of over 250 000 teachers and workers.  Dr Sanya Samtani, Senior Researcher at the Mandela Institute in the Law Faculty at the University of the Witwatersrand, Johannesburg echoed these sentiments. “The Copyright Amendment Bill is an example of the state trying to regulate copyright, trying to fulfill its international obligations on copyright, and also its human rights obligations, which are constitutional and international in nature.” ‘AI for Good’ in Africa The conference considered the importance of Artificial Intelligence (AI) in solving the world’s most pressing challenges, including climate change, pandemic responses and countering misinformation. Generative AI has understandably raised alarm bells amongst creatives. Professor Vukosi Marivate, Chair of Data Science at the University of Pretoria, described a project in which broadcast TV shows in South Africa could be used to train AI models to educate local communities about primary health care in indigenous African languages. Marivate said that a power reset needs to take place between local communities and Big Tech based in the Global North. This will allow AI to be used to protect

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