The DPIIT has released a working paper on AI and Copyright Issues, proposing a framework to ensure that content creators are paid when AI models use their work for training. The issue has gained urgency as global AI companies face lawsuits for training models on copyrighted material without consent or compensation.
Why the Issue Has Become Critical
- Modern Large Language Models (LLMs) grow powerful by training on massive volumes of internet data—text, images, videos, songs, code.
- AI companies argue that online material is “free to use”, but human creators must follow copyright laws.
- This has created a clash of interests between AI developers and content producers like journalists, authors, film houses and digital platforms.
Rapid Technological Progress
- Faster advances in machine learning architecture and access to huge datasets fuel AI development.
- AI models produce sophisticated reasoning and creative outputs—built on the content created by millions of people.
Unrestricted Data Scraping
- AI developers scrape the internet without paying, even though similar reproduction by a non-AI entity requires licensing.
- This has led to major disputes and global litigation.
Mandatory Licensing Framework
- AI companies may scrape publicly available data, but must pay royalties.
- A non-profit, copyright-society-like body will: Collect payments from AI developers based on their revenue. Distribute royalties to Indian content producers whose material was used.
Why this approach?
- Small creators cannot monitor, block or enforce restrictions on AI scraping.
- Enforcing an “opt-out” model is impractical in India’s large digital ecosystem.
- AI outputs are synthetic, not copied, making legal enforcement complex.
Challenges & Concerns
- Royalty calculation disputes – smaller publishers may receive disproportionately low returns.
- Risk of large media houses receiving more, despite lower per-unit effort.
- Need for transparent criteria for payment slabs, data-use tracking, and verification.
- Excessive regulation could slow India’s growing AI innovation space.
Why India Needs a Framework Now
- Court cases worldwide show no stable legal guidance on AI–copyright disputes.
- Waiting for judicial clarity will benefit AI giants, not creators.
- A basic, working model can later be refined through judicial interpretation, but no system at all leaves creators unprotected.
Conclusion
The DPIIT proposal is a balanced attempt to safeguard the rights of creators while promoting responsible AI innovation. A transparent mandatory licensing mechanism can prevent exploitation of Indian content, ensure fair compensation, and support the long-term development of India’s digital and creative economy.
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