News Corp Warns Trump: AI's 'Art of the Steal' Threatens Book Sales and Intellectual Property

News Corp Sounds Alarm on AI's Impact on Intellectual Property

News Corp, the media conglomerate owned by Rupert Murdoch, has issued a stark warning about the impact of artificial intelligence (AI) on intellectual property rights, using former President Donald Trump's book "The Art of the Deal" as a prime example. The company's CEO, Robert Thomson, has raised concerns about AI engines consuming copyrighted material without proper compensation, potentially undermining future sales and creativity 1

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Source: New York Post

The 'Art of the Steal': Trump's Books and AI

In a bold statement accompanying News Corp's fourth-quarter earnings report, the company highlighted how even the President of the United States is not immune to what they term "blatant theft" by AI engines. Thomson stated, "The president's books are still reporting healthy sales, but are being consumed by AI engines which profit from his thoughts by cannibalizing his concepts, thus undermining future sales of his books" 2

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This warning comes at a time when Trump has recently announced an "AI Action Plan" that critics argue could weaken intellectual property protections in favor of tech companies 3

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Source: The Telegraph

News Corp's Stance on AI and Intellectual Property

Thomson emphasized the importance of protecting intellectual property in the AI age, arguing that it is crucial for realizing collective potential. He stated, "The AI age must cherish the value of intellectual property if we are collectively to realize our potential" 4

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News Corp has been at the forefront of the battle between content creators and AI companies. The company has filed lawsuits against AI firms, including Perplexity AI, accusing them of copyright infringement. At the same time, News Corp is engaged in negotiations with several AI companies, recognizing that the purchase of intellectual property is as crucial as acquiring semiconductors or securing energy sources 1

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The Broader Impact on Media and Publishing

The issue extends beyond Trump's books, affecting the entire media and publishing industry. News Corp's global newspaper revenue has fallen sharply, including in Australia, partly due to these challenges 5

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Thomson argues that America's advantage in global competition lies in its ingenuity and creativity, not just in technological infrastructure. He warns that undermining this advantage by stripping away IP rights would "vandalize our virtuosity" 3

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The Way Forward: Balancing AI Innovation and IP Protection

News Corp's stance reflects a growing tension in the media industry between embracing AI's potential and protecting content creators' rights. While the company has struck deals with some AI firms, such as a multi-year agreement with OpenAI, it remains vigilant about protecting its intellectual property 4

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Thomson calls for AI companies to invest in content as they do in infrastructure, suggesting that spending on content is crucial for their success. As the debate continues, the media industry watches closely to see how the balance between AI innovation and intellectual property protection will be struck 3

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