In a bid to support technological advancements in artificial intelligence (AI), a government committee has proposed allowing AI developers to easily access copyright-protected content by way of a blanket license that also ensures copyright owners receive royalties.
The panel’s working paper, which contains these recommendations, was released by the Department for Promotion of Industry and Internal Trade (DPIIT) in the public domain on December 8. The department also sought feedback and views of all concerned stakeholders within 30 days.
“With a majority view, the committee decided to recommend a mandatory blanket licence in favour of AI developers for the use of all lawfully-accessed, copyright-protected works in the training of AI Systems, accompanied by a statutory remuneration right for the copyright holders,” the paper said.
While the framework would take away the rights holders’ option of withholding their works from use in the training of AI systems, it would ensure they receive royalties while cutting down the need for long negotiations and high transaction costs that can hold back innovation, particularly for startups and MSMEs, it said.
“By preserving the right of the copyright owners to receive royalties and administering it through a single umbrella organisation made by the rights holders and designated by the government, the model aims to provide an easy access to content for AI Developers for AI Training, simplify licensing procedures, reduce transaction costs, ensure fair compensation for rights holders,” the paper added.
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According to the paper, Generative AI has immense potential to transform the world for better, underscoring the need for a regulatory environment that supports its development.
This hybrid model offers a single window for AI developers to gain access to copyrighted works for AI training, it said.
The DPIIT had formed a committee on April 28, 2025, to deliberate upon emerging issues pertaining to AI systems and copyright. The eight-member panel created was headed by additional secretary, Himani Pande, as well as legal experts, representatives from the industry, and academia.
It was tasked with identifying the issues raised by AI systems, examine the existing regulatory framework, assess its adequacy, and recommend changes if necessary, besides preparing a working paper for consultation with stakeholders.
The committee said its main challenge was to find out how to protect the copyright in the underlying human-created works without stifling technological advancement, since the use of copyrighted materials to train AI systems for training has sparked an important debate around copyright law.
“To address this, a balanced regulatory architecture is required to preserve the integrity of the creative ecosystem in the country while encouraging AI innovation,” it said.
Recognising the need for access to large volumes of high-quality data for AI development, the panel decided to adopt a hybrid approach which ensures availability of all lawfully-accessed, copyrighted content for AI training as a matter of right, without the need for individual negotiations; thereby reducing transaction costs for the developers; and reduced compliance burden for them.
It also suggested fair compensation to copyright holders; judicial review over royalty rates established; easy and straightforward process of payment to rightsholders; and level playing field for start-ups and small players.
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