India's AI Royalty Plan: Creators Get Paid!

India has introduced a groundbreaking proposal for a mandatory royalty system for AI companies that utilize copyrighted content for model training. This initiative aims to establish a "mandatory blanket license," granting AI developers access to all copyrighted works in return for royalty payments. These collected royalties would be managed by a newly formed body representing rights holders, ensuring compensation flows back to creators like writers, musicians, and artists.

The proposed framework seeks to address global concerns over AI training data and provide a clear regulatory path, unlike the ongoing legal debates in the U.S. and Europe. By offering automatic access coupled with mandatory payments, India's approach is more interventionist, aiming to prevent prolonged legal uncertainties and ensure fair compensation from the outset. The system is designed to reduce transaction costs for AI firms and establish a single point of collection for royalties.