India Proposes Mandatory Royalties for AI Training on Copyrighted Content, Impacting U.S. Tech Giants
India's Department for Promotion of Industry and Internal Trade (DPIIT) has proposed a new framework that mandates AI companies to pay royalties for using copyrighted content in training their models. This initiative aims to ensure that content creators are compensated when their work is used by AI companies like OpenAI and Google. The proposal includes the establishment of a collection agency to manage and distribute these royalties to rights-holding organizations. This move comes amid global discussions on the use of copyrighted material in AI training, with OpenAI's Sora 2 video generation AI recently facing criticism for generating content resembling Japanese intellectual properties. The proposal is seen as one of the most interventionist approaches globally, contrasting with the U.S. and EU's ongoing debates on transparency and data usage boundaries.