India Proposes Mandatory Royalties for AI Training, Sparking Global Debate
Artificial Intelligence
Copyright Law
India
OpenAI
Google
Royalty Systems
AI Training
8
Regulatory First Steps
Media Hype
7/10
Real Impact
8/10
What is the Viqus Verdict?
We evaluate each news story based on its real impact versus its media hype to offer a clear and objective perspective.
AI Analysis:
While the long-term impact remains uncertain, India’s intervention represents a bold, early attempt to address a rapidly evolving technological and legal challenge. The initial hype is justified by the potential for significant regulatory ripple effects, but the ultimate impact will depend on how other governments respond and how the system is implemented.
Article Summary
India’s Department for Promotion of Industry and Internal Trade has proposed a novel system mandating AI companies train their models on copyrighted content by paying royalties to a central collecting body. This system, designed to ensure compensation for creators and address mounting legal challenges worldwide, would grant AI firms access to all copyrighted works in exchange for payments distributed to rights holders. The proposal comes amid escalating lawsuits globally concerning AI training on unlicensed data, with courts and regulators grappling with the question of ‘fair use’. India's significant and growing GenAI market, particularly its reliance on Indian creators' work, strengthens the justification for this interventionist approach. However, the proposal is already generating strong opposition. Nasscom, the industry body representing Google and Microsoft, argues for a broader ‘text-and-data-mining exception’, while the Business Software Alliance urges India to avoid a purely licensing-based regime. The government intends to finalize its recommendations after a public consultation period.Key Points
- India is proposing a mandatory royalty system for AI companies training models on copyrighted content.
- The system would grant AI firms access to copyrighted works in exchange for payments to a central collecting body, distributing royalties to creators.
- This move reflects a global trend in addressing the use of copyrighted material in AI training and aims to resolve ongoing legal disputes.