What's Happening?
India has proposed a new framework that would require AI companies to pay royalties for using copyrighted content in training their models. This proposal aims to provide a 'mandatory blanket license' allowing
AI firms access to all copyrighted works in exchange for payments to a collecting body, which would then distribute royalties to creators. The move comes amid global concerns over AI companies using copyrighted material without compensation, a practice that has led to legal challenges in the U.S. and Europe. India's approach is one of the most interventionist, seeking to ensure creators are compensated while reducing compliance costs for AI firms.
Why It's Important?
India's proposal could significantly impact how AI companies operate, particularly in terms of their financial obligations and access to training data. By mandating royalties, the framework seeks to address the legal uncertainties surrounding AI training and copyright infringement. This could lead to a more equitable distribution of benefits derived from AI technologies, ensuring that creators receive fair compensation. The proposal also reflects India's growing importance as a market for AI tools, potentially influencing global standards and practices in the AI industry.
What's Next?
The Indian government has opened the proposal for public consultation, allowing stakeholders to submit feedback. The outcome of this consultation could shape the final framework, which may then be adopted by the government. If implemented, the proposal could serve as a model for other countries grappling with similar issues, potentially leading to a shift in how AI companies approach content licensing and compensation. The response from major tech firms and industry bodies will be crucial in determining the proposal's viability and impact.








