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The Government of India is considering amendments to the Copyright Act to address legal challenges posed by Artificial Intelligence (AI), especially the use of copyrighted works for AI training.

Background

The Copyright Act, 1957 protects original literary, artistic, musical, dramatic works, films, and sound recordings. It grants creators exclusive rights to reproduce, adapt, publish, translate, and communicate their works to the public. However, the rise of generative AI has exposed gaps in the law regarding training data usage and ownership of AI-generated outputs.

Key Proposed Amendments

1. Mandatory Blanket License for AI Training: AI developers may receive a statutory blanket license allowing them to use lawfully accessed copyrighted works for training AI models.

• Individual permission from each copyright owner would no longer be required.
• Rights holders may lose the ability to opt out of AI training use.

2. Statutory Right to Remuneration: Creators would be entitled to royalties when their works are used in AI training.

• Compensation could be calculated as a fixed share of revenue generated by AI systems.
• Payments would become due once AI products are commercialised, not during data collection.

3. Centralised Royalty Collection Mechanism: A government-designated, non-profit bodycomprising copyright societies and collective management organisationsmay be set up to collect and distribute royalties.

4. Concessions for Startups and MSMEs: Differential royalty structures may be introduced to ensure smaller AI firms are not disproportionately burdened.

Why Reform is Needed

• Absence of AI-Specific Definitions: The Act does not define terms such as AI, machine learning, generative AI, or training data, leading to legal uncertainty.
• Ambiguity Over AI Training: It is unclear whether AI training amounts to reproduction or adaptation under Section 14, or whether it qualifies as “fair dealing” under Section 52.
• Uncompensated Use of Creative Works: Mass data scraping for AI training currently occurs without systematic permission or remuneration for creators.
• Authorship of AI-Generated Content: The Act recognises authors in human terms, leaving uncertainty about ownership and protection of AI-created outputs.
• Cross-Border Issues: Existing provisions do not address AI systems trained abroad using Indian works or cloud-based data processing, complicating enforcement.

Key Features of the Copyright Act, 1957

• Section 2: Defines categories of works (literary, dramatic, artistic, etc.)
• Section 13: Extends protection to literary, musical, dramatic works, films, and sound recordings
• Section 14: Grants exclusive rights to copyright owners
• Section 52: Lists exceptions such as fair dealing
• Copyright exists automatically upon creation; registration is not mandatory

Judicial Highlights

Indian courts have emphasised balancing creator rights and public interest:

• Educational photocopying has been upheld as fair dealing
• Digital piracy has been actively restrained through blocking rogue websites
• Limited use of copyrighted content may not always constitute infringement

Global Approaches to AI & Copyright

India’s proposed model differs by combining mandatory licensing with creator remuneration, aiming to balance innovation and rights protection.