India has proposed a mandatory royalty system for AI companies that train their models on copyrighted content — a move that could reshape how OpenAI and Google operate in what has already become one of their most important and fastest-growing markets globally.
On Tuesday, India’s Department for Promotion of Industry and Internal Trade released a proposed framework that would give AI companies access to all copyrighted works for training in exchange for paying royalties to a new collecting body composed of rights-holding organizations, with payments then distributed to creators. The proposal argues that this “mandatory blanket license” would lower compliance costs for AI firms while ensuring that writers, musicians, artists, and other rights holders are compensated when their work is scraped to train commercial models.
India’s proposal comes amid mounting concerns in global markets over how AI companies train their models on copyrighted material, a
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