India Proposes Royalty Payments from AI Firms for Training on Copyrighted Content
An Indian government panel has recommended that artificial intelligence companies be required to pay royalties to content creators when using their work to train AI models—a move that could significantly impact major players like OpenAI and Google. The panel, formed in April, said AI developers should retain access to Indian content but pay into a central royalty pool representing copyright holders. The proposal comes as governments globally seek to resolve mounting AI-related copyright disputes, with India taking a notably stricter stance than jurisdictions such as the United States, where AI companies argue such use falls under “fair use.”
The panel rejected the European Union’s opt-out model, calling it ineffective because it places the burden on creators to track down their work across massive datasets. Under the new proposal, creators would instead be able to claim compensation from the centralized fund if their work is found to have been used. Industry groups and the public have 30 days to challenge the recommendations, which government officials will later review. India’s approach diverges sharply from countries like Japan, where broad exemptions allow AI companies wide latitude in using copyrighted material for training.
The move has triggered industry pushback. Nasscom, a powerful tech body representing companies including Google and Microsoft, opposed the plan, arguing that mandatory royalties amount to a “tax or levy on innovation.” Meanwhile, the Motion Picture Association, representing major streaming and entertainment firms, urged the panel not to amend copyright laws and instead pursue licensing-based solutions. The debate unfolds amid ongoing legal tensions, including a court battle between OpenAI and news agency ANI over alleged unauthorized use of copyrighted content.
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