Canada's Online News Act Spurs Compensation Deals Amid AI and Tech Platform Tensions
April 13, 2025
In Canada, the Online News Act aims to secure compensation from tech companies for the use of journalistic content, with Google committing to a $100 million annual payment to media organizations.
Despite the challenges in tracking content usage, news organizations are actively seeking to quantify the value of their work, as evidenced by major deals like News Corp's agreement with OpenAI, reportedly worth over $250 million over five years.
Experts warn that individual licensing deals with AI companies could undermine the long-term viability of news organizations, advocating for a collective approach to ensure sustainable compensation.
Industry group News Media has noted that current licensing agreements tend to favor larger publishers, often excluding smaller outlets that also contribute valuable content consumed by AI firms.
Meta's strategy of blocking Canadian news to avoid compensation under the Online News Act has prompted suggestions for legislative measures to prevent such avoidance.
The news industry is experiencing a significant shift as it grapples with compensation issues not only from tech platforms but increasingly from AI chatbots that provide information without crediting news organizations.
Recent lawsuits against AI companies, including OpenAI, highlight ongoing copyright infringement claims from media organizations that allege their articles were used without permission, pushing for fair compensation models.
Canadian researchers stress the importance of considering the impact of generative AI on the news industry in future legislation aimed at ensuring fair compensation.
Crabbe-Field has proposed future legislation that includes 'must carry provisions' to prevent companies like Meta from circumventing compensation obligations by blocking news content.
As AI companies increasingly seek high-quality content from news outlets for training their models, licensing arrangements are becoming more common, although determining fair compensation remains a challenge.
Proposed compensation models discussed in court cases against AI firms include fixed payments per work, reflecting the industry's push for clearer and fairer compensation structures.
The Associated Press has also entered into a deal with OpenAI, although the financial specifics of this agreement have not been disclosed.
Summary based on 4 sources
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Sources

thecanadianpressnews.ca • Apr 13, 2025
Future legislation compensating news outlets for content must account for AI: report
MooseJawToday.com • Apr 13, 2025
Future legislation compensating news outlets for content must account for AI: report
CityNews Halifax • Apr 13, 2025
Future legislation compensating news outlets for content must account for AI: report