The Computer & Communications Industry Association (CCIA) has expressed strong opposition to California Assembly Bill 412, which is being considered by lawmakers. The association argues that the bill would impose impractical compliance requirements on AI developers, severely impacting innovation within the state and potentially driving businesses away.
AB 412 requires AI developers to track and disclose all copyrighted materials used in training their models. According to CCIA, this requirement is unfeasible because copyright is automatically granted upon creation, and there is no centralized database for verification. This could particularly harm startups and small businesses, making AI development in California both legally and financially challenging. Additionally, the bill mandates companies to reveal proprietary information about their AI models, risking trade secrets and potentially allowing competitors or others to misuse the law.
The CCIA also highlights that AB 412's broad disclosure mandates could interfere with ongoing federal copyright litigation related to AI. Rather than enhancing transparency, the association believes the bill would create a complex legal environment that discourages investment and prompts companies to relocate outside of California.
Aodhan Downey, State Policy Manager for CCIA, stated: “AB 412 is an unworkable proposal that would cripple California’s AI sector, create impossible compliance burdens, and expose companies to endless lawsuits. The bill does nothing to meaningfully improve AI transparency but would devastate competition by forcing out smaller AI developers while entrenching the largest players. California should be fostering AI innovation, not passing laws that will push jobs, investment, and groundbreaking research out of the state.”