Full Report
While preventing third parties from profiting off unauthorized deepfakes of artists and performers is a bipartisan concern, some business and digital rights groups are opposed. The post Congress tees up No FAKES Act, aiming at AI-generated deepfakes appeared first on CyberScoop.
Analysis Summary
# Regulation/Compliance: NO FAKES Act of 2024 (Nurture Originals, Foster Art, and Keep Entertainment Safe)
## Overview
The NO FAKES Act is a federal legislative proposal designed to protect the "voice and visual likeness" of individuals from unauthorized AI-generated replicas (deepfakes). It establishes a standard federal property right to one’s likeness to prevent unauthorized commercial exploitation, particularly targeting deepfakes used in music, film, and fraudulent endorsements.
## Key Details
- **Issuing Authority:** United States Congress (Senate Judiciary Committee)
- **Effective Date:** Pending (Introduced/Moved through Committee as of June 2026 in the article context)
- **Jurisdiction:** United States (National Standard)
- **Status:** Proposed (Passed Senate Judiciary Committee voice vote)
## Requirements
### Mandatory Requirements
1. **Consent for Digital Replicas:** Organizations must obtain express consent before creating or distributing an AI-generated digital replica of a human being.
2. **Licensing Limitations:**
- Licensing agreements for adults are limited to **10-year terms**.
- Licensing agreements for minors are limited to **5-year terms**.
3. **Post-Mortem Rights:** Rights to an individual's likeness persist for **70 years after death**, requiring authorized use from heirs or executors.
4. **Take-down Compliance:** Platforms may be required to remove unauthorized content upon discovery to mitigate liability.
### Recommended Practices
1. **Digital Provenance:** Implementation of watermarking or metadata to distinguish between authentic media and licensed AI replicas.
2. **Contractual Audits:** Reviewing talent and performance contracts to ensure they align with the Act’s specific term limits (5/10 years).
## Affected Organizations
- **Industries:** Entertainment (Film/Music), Advertising, AI Development, Social Media Platforms, and News Media.
- **Organization Size:** All sizes (Any entity utilizing or hosting digital likenesses).
- **Geographic Scope:** Any entity operating within the U.S. or utilizing the likeness of U.S. persons.
## Compliance Timeline
- **June 18, 2026:** Approved by Senate Judiciary Committee.
- **Pending:** Full Senate Vote.
- **Pending:** House of Representatives Approval and Presidential Signing.
- **TBD:** Full enforcement begins (typically 180 days to 1 year post-enactment).
## Implementation Guidance
### Assessment Phase
- **Inventory AI Assets:** Identify where the organization uses AI to generate human-like voices or visuals.
- **Rights Gap Analysis:** Review existing consent forms to see if they meet the "express consent" standard for AI replicas.
### Implementation Phase
- **Update Procurement:** Ensure AI tool vendors provide "indemnification" or proof of training data legality.
- **Update Legal Templates:** Adjust talent contracts to include the specific time-bound windows required for AI likeness licensing.
### Validation Phase
- **Content Moderation Checks:** Ensure internal systems can detect and flag unauthorized digital replicas before publication.
## Technical Requirements
- **Detection Capabilities:** Ability to identify unauthorized AI-generated content (deepfakes) on hosted platforms.
- **Identity Verification:** Robust KYC (Know Your Customer) or identity verification for users attempting to license their likeness.
## Penalties & Enforcement
- **Fines:** Statutory damages can reach up to **$750,000 per violation**.
- **Other Consequences:** Private right of action (individuals can sue directly), loss of reputation, and potentially permanent injunctions against the offending media.
- **Enforcement:** Civil litigation in federal court by affected individuals, estates, or representatives.
## Related Standards
- **NIST AI Risk Management Framework (AI RMF):** Provides the structure for managing risks related to generative AI.
- **Section 230 (Communications Decency Act):** The NO FAKES Act seeks to clarify/supersede parts of Section 230 regarding platform liability for hosted AI content.
## Resources
- **Official Documentation:** [hXXps://www.congress.gov/bill/119th-congress/house-bill/2794/text]
- **Supporting Orgs:** SAG-AFTRA, Human Artistry Campaign.
## Practical Recommendations
- **Avoid Pre-emptive Transfers:** Do not sign "perpetual" likeness rights; the bill renders such clauses for AI replicas void.
- **Documentation:** Maintain a central registry of all "Digital Replica Consents" to defend against potential litigation.
- **Stay Informed:** Monitor the "free speech" exemptions currently being debated in the Senate to understand what qualifies as "fair use" (e.g., news or parody).