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.

This proposal emerges as India's significant market for AI tools, with companies like OpenAI noting its rapid growth. The government's committee argues that a portion of the value derived from Indian users and creators' work should benefit those creators. While some industry groups advocate for opt-out options or text-and-data-mining exceptions, India's proposed hybrid model aims for a balanced framework that supports both AI innovation and robust copyright protections.