Inno-Biz Association: "Institutional Protection for AI Data Utilization Should Prioritize SMEs"

"Korea Urgently Needs to Introduce a TDM Exception"

The Inno-Biz Association has called for the introduction of a 'Text and Data Mining (TDM) exception' through the enactment of the Act on the Utilization and Promotion of Artificial Intelligence (AI) by Small and Medium Enterprises. The association also stressed that the benefits of such a system should be prioritized for small and medium-sized enterprises (SMEs), as they face higher initial AI investment costs and greater legal risks compared to large corporations.

In a statement released on November 3, the association emphasized, "To protect the rights of creators without hindering technological innovation, it is urgent to introduce a TDM exception that provides legal protection for AI data utilization." The association added, "Through this, our society must bring discussions on the legal and ethical issues of the AI era to the forefront."

Kwangcheon Jeong, President of the Inno-Biz Association. Inno-Biz Association

A significant portion of the training data necessary for AI development consists of creative works. In manufacturing sites where Inno-Biz companies are mainly active, 'physical AI'-which combines robots, sensors, and the Internet of Things (IoT)-is spreading rapidly. Physical AI is used to collect and learn from vast amounts of sensor data in real time, such as temperature, vibration, and power patterns, to increase productivity or reduce defect rates. However, the association argues that it is difficult to utilize this data without the legal protection provided by a TDM exception.

The association highlighted the recently proposed 'Act on the Utilization and Promotion of Artificial Intelligence by Small and Medium Enterprises' in the National Assembly, noting that the core of this bill is the TDM exception clause. This provision would allow AI to legally access, learn from, and analyze data. The association explained that this is not simply an exemption from reproduction, but a mechanism that reduces legal uncertainties that cannot be resolved by fair use alone.

The association further pointed out, "Unlike Korea, major advanced countries such as Japan, the European Union (EU), and Singapore have already introduced TDM exception systems, broadly guaranteeing data analysis for AI training purposes." They stressed, "To avoid falling behind in technological competition, it is necessary to actively engage in social discussions to establish a clear system before it is too late."

The association also presented four policy directions: ▲ Prioritizing the protection of SMEs, which are more vulnerable to legal risks, rather than focusing on large corporations ▲ Establishing guidelines that clearly define the scope of data access and utilization ▲ Providing education on data utilization and technical support in parallel ▲ Forming consultative bodies among creator groups, industry, and government.

Additionally, the association emphasized, "AI is not the exclusive domain of large corporations." Citing a recent survey showing that more than 67% of Inno-Biz companies are already utilizing AI, the association added, "It is SMEs that are solving inefficiencies on the ground and driving industrial innovation through AI."

In conclusion, the association stated, "Inno-Biz companies are at the center of this movement," and added, "The next chapter created by those leading AI innovation will become the source of Korea's competitiveness."

This content was produced with the assistance of AI translation services.