In view of recent AI developments and increasing concerns around the use of copyrighted works for AI training, the Department for Promotion of Industry and Internal Trade (DPIIT) formed a committee to examine how India’s copyright framework should respond. Accordingly, DPIIT recently released a working paper proposing a hybrid model of One Nation – One License – One Payment policy, the key aspects of which are:

  • Mandatory blanket license for using all copyrighted works for AI training as a matter of right
  • The copyrighted content must be lawfully accessed by the AI Developers
  • Fair compensation by means of statutory royalties would be provided to the copyright owners, after commercialization of the AI tools.

What does this mean for copyright owners?

To simplify, the proposed model does not give copyright owners the option to refuse or opt out of the use of their works for AI training. The copyrighted works can be used for the purpose of training AI models, as long as the content is being lawfully accessed.

In return, this model ensures guaranteed inclusion in the royalty pool, regardless of membership in copyright societies. There would be no need to negotiate licenses individually with AI developers and royalty rates would be fixed through a statutory mechanism, reducing enforcement and follow-up burdens for creators.

How royalties may work?

If this model is adopted, then it has been proposed that a centralized agency including Copyright Societies and Collective Management Organizations would be responsible for collecting the statutorily fixed royalties from the AI Developers and distribute them to the respective copyright owners. Although the rate of royalties would be fixed by the committee, it has been proposed that it would be subject to judicial review.

While rates would be fixed by the competent authority and subject to judicial review, several aspects remain unclear including how usage will be tracked, when royalties will become payable, how payments will be distributed or how cross-border works and developers will be addressed, among others.

What creators should do now

Please note that this policy is only a proposal. It is not currently in force, and it may be modified, partially adopted or not adopted at all following consultations. As the proposal is still under consideration, creators may consider the following steps to be prepared:

  • Ensure your works are properly documented and where applicable, formally obtain copyright protection to establish clear proof of ownership and authorship.
  • Register with relevant copyright societies to facilitate future royalty collection without any issues.
  • As an additional protective measure, use access controls such as paywalls or licensing terms, since AI developers can rely on the proposal only where content is lawfully accessed.

If you require any clarification or assistance for better protection of your works, feel free to contact us for a quick assessment!

Written by Keerthana K