Washington – The Computer & Communications Industry Association is testifying today against California AB 412 (Bauer-Kahan), warning that the bill’s impractical compliance requirements would cripple AI innovation in California, drive businesses out of the state, and expose companies to endless legal and financial risks.
AB 412 mandates that AI developers track and disclose all copyrighted materials used to train their models – an impossible requirement given that copyright is automatically granted upon creation, with no centralized database for verification. This burden would be devastating, particularly for startups and small businesses, making AI development in California legally and financially unfeasible. The bill would also force companies to disclose proprietary information about their AI models, jeopardizing trade secrets and opening the door for bad-faith actors to weaponize the law for competitive or legal advantage.
By imposing broad disclosure mandates on an issue that courts are actively debating, AB 412 would also interfere with ongoing federal copyright litigation. Rather than supporting AI transparency, the bill creates a legal minefield that would stifle investment and force companies to move operations out of California.
The following statement can be attributed to Aodhan Downey, State Policy Manager for CCIA:
“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.”
