DPIIT Releases First Working Paper on AI-Copyright Framework

The Department for Promotion of Industry and Internal Trade (DPIIT) has released Part 1 of its working paper studying how generative AI systems use copyrighted material in India.  

The document is based on the work of an eight-member committee set up on 28 April 2025 to review the adequacy of the Copyright Act, 1957 in handling AI training practices. The paper has been issued for stakeholder comments. 

Evaluation of Existing Approaches 

The committee examined international models such as blanket exemptions, text-and-data-mining exceptions, voluntary licensing, and extended collective licensing.  

The paper states that each option presents difficulties when applied to India, mainly due to monitoring challenges, transaction costs, and the scale at which AI models rely on external content. These limitations create uncertainty for both rights holders and developers. 

Proposed Licensing Structure 

The report rules out a zero-price licence, noting that such an approach could reduce the supply of original human-created work. It instead recommends a hybrid model. Under this system, AI developers would receive a mandatory blanket licence to use all lawfully accessed copyrighted material for training.  

Royalty payments would become due only once the AI system is commercialised, with rates set by a government-appointed committee and open to judicial review. 

Royalty Collection and Administration 

A centralised non-profit body is proposed to manage payments. This organisation would include copyright societies and collective management organisations, with one representative for each class of works.  

Rights holders would need to register their works to receive AI-related royalties. Developers would pay a fixed share of AI-generated revenue, and the system would function as a single-window mechanism for accessing copyrighted material for training. 

Current Legal Position and Disputes 

The paper notes that, under Section 51 of the Copyright Act, using copyrighted material for AI training without permission may constitute infringement.  

Ongoing litigation, including a case filed by Asian News International (ANI) against OpenAI in the Delhi High Court, highlights the concerns of publishers and music labels about unauthorised use of their content. 

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Conclusion 

The working paper outlines a possible structure for regulating access to copyrighted material in AI development and provides the basis for further policy consultation. 

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