India proposes licensing and royalty rules for AI training by Google, OpenAI
India’s tech‑policy panel is shaping a new rulebook for how AI models learn from existing content. After sifting through global case studies and a flood of stakeholder comments, the committee tossed out a one‑size‑fits‑all text‑and‑data mandate. Instead, it is drafting a set of licensing and royalty guidelines aimed squarely at the big‑player training pipelines of Google and OpenAI.
The shift reflects a growing unease that unchecked data harvesting could spark legal battles, while creators remain unsure whether their work will ever be compensated. Here’s the thing: the proposal tries to balance two competing pressures—protecting intellectual‑property rights and keeping AI development on a viable path. The committee’s stance suggests it believes a structured framework can do more than merely placate industry giants; it could give content owners a measurable stake in the AI boom.
That’s why Umarani’s comment about a “clear licensing and royalty framework” matters; it frames the debate between dispute avoidance and responsible innovation.
"A clear licensing and royalty framework could prevent future disputes and give creators real confidence while allowing AI development to continue responsibly," Umarani said. After examining global developments and contrasting stakeholder submissions, the committee rejected a blanket text-and-data mining (TDM) exception, widely supported by technology firms, stating that allowing such an exception "would undermine copyright" and "leave human creators powerless to seek compensation." Hybrid Licensing System Proposed The committee recommended a hybrid system allowing AI developers to train on "all lawfully accessed copyrighted works" as a matter of right, but with mandatory royalty sharing through a government-designated non-profit collective formed by rights holders.
The working paper signals India’s first concrete step toward a royalty regime that could shape how large‑scale models learn from existing content. By recommending a blanket licensing system for training on copyrighted works, the DPIIT‑appointed committee hopes to give creators a clearer path to compensation while keeping AI development on a predictable track. “A clear licensing and royalty framework could prevent future disputes and give creators real confidence while allowing AI development to continue responsibly,” Umarani said, underscoring the intent behind the proposal.
Yet the committee stopped short of endorsing a universal text‑and‑data mandate, rejecting that approach after weighing global trends and stakeholder feedback. What remains uncertain is how the suggested licensing model will be operationalised, what royalty rates might look like, and whether industry players will accept the terms without prolonged negotiation. The next phase will likely involve drafting detailed regulations, but the paper itself stops short of prescribing enforcement mechanisms, leaving the practical impact of the proposal open to further clarification.
Further Reading
- India proposes charging OpenAI, Google for training AI on copyrighted content - TechCrunch
- AI, LLM training: DPIIT mulls govt-fixed royalty rates for content creators - Business Standard
- Plan to make AI developers pay for content - The Times of India
- Govt committee proposes mandatory blanket licence for AI training - The Economic Times
- India's AI Royalty Framework and Its Implications for Global Tech Giants - AInvest
More in Open Source
Google adds Gemini AI tools to Chrome for iPhone and iPad users
Why does this matter for the millions of iOS and iPadOS users who rely on Chrome as their default...
Nous Research's Nomos 1 ranks second on Putnam, trailing DeepSeekMath-V2
Nous Research just dropped Nomos 1, an open‑source model that managed to clinch second place on the...
Mistral AI launches DevStral 2 (123B), DevStral Small 2 (24B) and Vibe CLI
Why does this matter now? Open‑source AI developers have been waiting for a model that can handle...
OpenAI finds 6× productivity gap as USD 40B corporate AI spend yields 95% no return
OpenAI’s latest internal audit shows a six‑fold productivity gap between companies that have fully...
Intel moves to acquire SambaNova at valuation below 2021 USD 5 billion peak
Intel is edging closer to a deal that could reshape its AI‑chip ambitions, but the numbers tell a...
Common Questions Answered
What licensing and royalty approach is India’s tech‑policy panel proposing for AI training pipelines of Google and OpenAI?
The panel is drafting a set of licensing and royalty guidelines specifically targeting the large‑scale training pipelines of Google and OpenAI. Instead of a blanket text‑and‑data mining exception, it recommends a blanket licensing system that would require payment for using copyrighted works in AI model training.
Why did the committee reject a one‑size‑fits‑all text‑and‑data mining (TDM) exception?
The committee argued that a universal TDM exception would undermine copyright protection and leave human creators powerless to seek compensation. It believes that without a clear licensing framework, unchecked data harvesting could lead to costly legal disputes.
How does Umarani describe the expected impact of a clear licensing and royalty framework on creators and AI development?
Umarani says a clear licensing and royalty framework would prevent future disputes and give creators real confidence in their rights. At the same time, it would allow AI development to continue responsibly and predictably.
What role does the DPIIT‑appointed committee play in shaping India’s AI training regulations?
The DPIIT‑appointed committee authored the working paper that marks India’s first concrete step toward a royalty regime for AI training. By recommending a blanket licensing system, the committee aims to provide creators a clearer path to compensation while keeping AI development on a predictable track.