Despite Changes, A.B. 412 Still Harms Small Developers

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California lawmakers are continuing to promote a bill that will reinforce the power of giant AI companies by burying small AI companies and non-commercial developers in red tape, copyright demands and potentially, lawsuits. After several amendments, the bill hasn’t improved much, and in some ways has actually gotten worse. If A.B. 412 is passed, it will make California’s economy less innovative, and less competitive. 

The Bill Threatens Small Tech Companies

A.B. 412 masquerades as a transparency bill, but it’s actually a government-mandated “reading list” that will allow rights holders to file a new type of lawsuit in state court, even as the federal courts continue to assess whether and how federal copyright law applies to the development of generative AI technologies. 

The bill would require developers—even two-person startups— to keep lists of training materials that are “registered, pre-registered or indexed” with the U.S. Copyright Office, and help rights holders create digital ‘fingerprints’ of those works—a technical task with no established standards and no realistic path for small teams to follow. Even if it were limited to registered copyrighted material, that’s a monumental task, as we explained last month when we examined the earlier text of A.B. 412. 

The bill’s amendments have made compliance even harder, since it now requires technologists to go beyond copyrighted material and somehow identify “pre-registered” copyrights. The amended bill also has new requirements that demand technologists document and keep track of when they look at works that aren’t copyrighted but are subject to exclusive rights, such as pre-1972 sound recordings—rights that, not coincidentally, are primarily controlled by large entertainment companies. 

The penalties for noncompliance are steep—up to $1,000 per day per violation—putting small developers at enormous financial risk even for accidental lapses.

The goal of this list is clear: for big content companies to more easily fi

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