India has proposed a groundbreaking mandatory royalty system for AI companies utilizing copyrighted content to train their models. This framework allows firms like OpenAI and Google to access all copyrighted works in exchange for paying royalties to a newly established collecting body. This initiative addresses global concerns surrounding AI training practices, fostering compliance while ensuring that creators—writers, artists, and musicians—receive compensation. Unlike the U.S. and EU, where fair-use debates continue, India’s interventionist approach aims to create a balanced framework that minimizes legal uncertainty and ensures royalty distribution. Industry bodies like Nasscom and the Business Software Alliance have expressed concerns, suggesting alternatives such as text-and-data-mining exceptions to encourage innovation while safeguarding rights. The Indian government is inviting public consultation to refine these proposals. This landmark move could significantly influence the future operations of AI companies within one of their fastest-growing markets.
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