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New Delhi: The Department for Promotion of Industry and Internal Trade (DPIIT) has released the first part of its working paper on how India should address copyright challenges arising from generative artificial intelligence, the Ministry of Commerce & Industry said on Tuesday. The paper is based on recommendations from an eight-member committee set up on April 28, to study whether current copyright laws are adequate and to suggest changes if needed.

The working paper reviews several global approaches, including blanket exemptions for AI training, text-and-data-mining exceptions with or without opt-out options, voluntary licensing systems, and extended collective licensing. After evaluating these models, the committee concluded that none of them fully meet India’s needs in terms of protecting creators while also supporting innovation in AI.

The committee also rejected the idea of ​​a “zero-price license” that would allow AI developers to freely use all content without compensation. It warned that such a system would hurt incentives for human creativity and could eventually lead to a decline in the production of high-quality human-generated work.

Instead, the working paper proposes a hybrid policy model. Under this model, AI developers would get a blanket license to use any lawfully accessed content for training their systems, without needing individual permissions or negotiations. Royalties would be paid only when these AI tools are commercially launched. The royalty rates would be decided by a government-appointed committee and remain open to judicial review.

A centralized system would be created to collect and distribute these royalties. The committee believes this would reduce legal and administrative complexities, ensure fairness for creators, and make it easier for both large and small AI developers to comply with the rules.

With the release of Part 1 of the working paper, DPIIT has now opened the proposals for public consultation. Stakeholders and members of the public can submit their feedback over the next 30 days, helping shape India’s approach to AI and copyright in the years to come.