National Affairs Working Paper on Generative AI & Copyright

The Government of India released a Working Paper on Generative AI & Copyright, introducing the country’s first structured framework for regulating AI training on copyrighted works. The model aims to balance creator rights with AI innovation, addressing disputes such as ANI vs OpenAI (Delhi HC, 2024–25) over unauthorized use of Indian content.

Key Issues Identified

• Unlicensed Use of Creative Works
  • Generative AI models train on Indian books, articles, films, music, and news without permission, violating Section 14 of the Copyright Act.
  • Example: ANI alleged OpenAI used its news content without consent.
• Legal Ambiguity
  • No explicit Text & Data Mining (TDM) exception exists.
  • Section 52 exceptions do not cover commercial AI training, leaving foreign AI developers in a legal grey zone.
• Absence of Compensation Mechanisms
  • Creators gain nothing from AI usage despite their works enhancing model quality.
  • Example: India’s informal music sector (~1.4 crore people) earns no royalties from AI training.
• Cultural and Economic Risks
  • AI outputs may overshadow or replace Indian folk art, local music, and regional storytelling, eroding cultural diversity.
  • Large AI firms benefit commercially, while small and independent creators remain disadvantaged.

Objectives of the Framework

• Protect India’s creative economy and safeguard livelihoods in entertainment, media, design, and folk sectors.
• Foster AI innovation aligned with IndiaAI Mission, enabling startups to access high-quality, lawful datasets.
• Preserve cultural diversity and human creativity.
• Ensure fair revenue sharing for Indian creators whose works train AI models.
• Simplify licensing for AI developers, especially MSMEs and smaller players.

Key Recommendations

• Mandatory Blanket License
  • One license grants AI developers access to all lawfully acquired copyrighted works without individual permissions.
  • Enables Indian LLMs (e.g., Sarvam, Gan AI, Soket) to train on diverse content across languages and formats.
• Statutory Royalty Payments
  • Creators receive revenue-proportional royalties.
  • Provides organized income streams to informal sectors such as music and journalism.
• Copyright Royalties Collective for AI Training (CRCAT)
  • Central government-designated body to collect license fees and distribute royalties to creators.
• Royalty Rate-Setting Committee
  • Government-appointed committee ensures fair, transparent, and periodically reviewed royalty rates with judicial oversight.
• Single-Window Licensing & Compliance
  • One license → One payment → Nationwide coverage.
  • Reduces transaction costs, especially for startups and smaller AI developers.