India is proposing a “mandatory blanket license” for AI training that requires companies like OpenAI and Google to pay royalties when using copyrighted materials. This revolutionary framework aims to reduce legal disputes and ensure creators receive compensation, making India a unique example in global AI policy. With over 800 million broadband subscribers, India represents a significant market for generative AI, and imposing royalties could reshape training budgets, currently dominated by compute costs.
The proposed system offers automatic access to copyrighted works, managed by a central collecting society, ensuring fair compensation while potentially influencing international policy debates. While tech groups like Nasscom argue that mandatory licensing may disrupt innovation, rights holders advocate for their compensation rights amid pending legal challenges. As the government prepares for public comments, the outcome could establish new revenue sources for creators while redefining operational efficiencies for AI companies, altering the dynamics of AI model training worldwide.
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