In News:

The Government of India released a Working Paper on Generative AI & Copyright proposing a national framework titled “One Nation, One License, One Payment”—India’s first structured model to regulate AI training on copyrighted works while balancing creator rights and AI innovation.

Core Issue

Generative AI (GenAI) models are trained on vast datasets scraped from books, news, music, films, and art—often without permission or compensation to creators.

Legal Gap

India’s Copyright Act, 1957:

• Protects reproduction rights under Section 14
• Provides fair dealing exceptions under Section 52
• Does not explicitly recognise Text & Data Mining (TDM) for commercial AI training

This creates ambiguity on whether large-scale AI training constitutes copyright infringement.

Key Concerns Identified

1. AI Training = Reproduction?

Training requires copying and transforming works, which may amount to reproduction under Section 14.

2. Fair Dealing Limitations: Fair dealing covers private research, criticism, reporting—not commercial AI model training.

3. No Compensation Mechanism: Creators (writers, artists, musicians, journalists) currently receive no royalties despite their works improving AI outputs.

4. Cultural & Economic Risk: Unregulated AI usage may dilute Indian cultural content and reduce long-term incentives for human creativity.

5. Unequal Bargaining Power: Large global AI firms benefit from Indian datasets, while individual creators lack negotiating capacity.

Need for a Balanced Framework

• Protect India’s growing creative economy
• Ensure predictable legal access to data for AI innovation
• Support the IndiaAI Mission and domestic startups
• Maintain cultural diversity and sustainability of creative professions
• Enable fair revenue-sharing between AI firms and Indian creators

Key Proposals of the Working Paper

1. Mandatory Blanket License: AI developers can train on lawfully accessible copyrighted works without individual permissions under a single national licence.

2. Statutory Royalty Payments: Creators will receive royalties linked to AI revenues, ensuring ongoing compensation.

3. Creation of a Collective Management Body: A proposed Copyright Royalties Collective for AI Training (CRCAT) would:

• Collect licence fees
• Distribute royalties to rights holders
• Represent both members and non-members

4. Royalty Rate-Setting Committee: A government-appointed body will determine fair royalty rates with periodic review and oversight.

5. Single-Window Digital Licensing: A simplified compliance system to:

• Reduce legal burden
• Enable startups and MSMEs to innovate
• Provide nationwide validity through one licence → one payment

Why This Model is Significant

• First attempt to align copyright law with AI-era realities
• Seeks to avoid litigation-heavy, opt-out frameworks
• Balances innovation, cultural preservation, and economic justice
• Positions India as a policy pioneer in AI governance