Regulatory Context
On May 14th, 2026, a decree amending the Federal Labor Law (“LFT“) and the Federal Copyright Law (“LFDA“) was published in the Official Gazette, entering into force the following day. The reform responds to the growing use of generative artificial intelligence tools capable of replicating the voice, image, and performances of artists without their consent. The amendments affect Chapter XI of the LFT governing performing artists, and introduce substantive changes to the LFDA’s provisions on related rights, advertising contracts, and the sanctioning regime administered by INDAUTOR. The regulations implementing the LFDA must be updated within sixty days of the decree’s entry into force.
Practical Impact
The reform generates concrete obligations for any entity that contracts performing artists or uses their performances commercially. Under the amended LFT, all employment contracts with performing artists must now expressly stipulate the conditions and compensation applicable to the use of their image or voice through AI systems or any other technology (new Article 305 Bis). On the copyright side, artists now hold an explicit right to prevent the cloning or simulation of their voice or image through AI — enforceable against unauthorized reproductions that are identifiable as the artist and are not protected by the parodic or creative use exception. Advertising contracts are also affected: any use beyond the originally agreed term and modalities requires renewed authorization and updated compensation aligned with current market values and inflation indicators. Any AI-based cloning or voice simulation in audiovisual productions requires a prior written agreement, regardless of whether a general production contract is in place. Violations of Articles 87 and 118 (VII) of the LFDA carry fines ranging from 5,000 to 40,000 days of minimum wage.
Considerations
The reform carries a structural change that deserves attention beyond its symbolic dimension: Chapter XI of the LFT has been renamed from “Trabajadores actores y músicos” to “Personas Trabajadoras Artistas Intérpretes o Ejecutantes.” This is not merely a terminological update. The new heading reflects a deliberate expansion of the protected category, consistent with the amended text of Article 304, which no longer limits its scope to actors and musicians but instead covers a broader universe of artists, performers, and executants. Entities that have historically structured their contracting practices around the narrower concept of “actors and musicians” should assess whether that framework remains adequate under the reformed statute. Companies operating in media, entertainment, advertising, streaming, dubbing, and any sector that engages performing artists should review their standard contract templates to incorporate the mandatory AI clause required by Article 305 Bis of the LFT. Existing contracts that contemplate the use of AI-generated content, or that could reasonably extend to such use, should be assessed for compliance with the updated LFDA provisions. Advertising agreements with performers currently in force merit particular attention given the new rules on term extensions, compensation updates, and platform-specific disclosure requirements introduced by the amended Articles 74 and 75. The reform also expands INDAUTOR’s role as a venue for alternative dispute resolution — including mediation, conciliation, and arbitration — which may affect how contractual disputes with artists are structured and resolved going forward.
