The Department for Promotion of Industry and Internal Trade (DPIIT) has issued Part I of its Working Paper on Generative Artificial Intelligence and Copyright, marking the first detailed policy examination of copyright issues arising from generative AI systems in India. Prepared by an eight-member committee constituted in April 2025, the Working Paper considers whether the Copyright Act, 1957 sufficiently addresses the use of copyrighted works for training AI models and the consequent impact on creators, performers, and other rights holders.
The Working Paper records that generative AI systems depend on large datasets, often comprising copyrighted works, raising concerns relating to unauthorised reproduction, potential economic displacement of creative labour, and the erosion of both moral and economic rights. After reviewing international approaches including fair use-type exceptions, text and data mining exceptions, and voluntary licensing frameworks, the Committee observed that no single model adequately balances the interests of creators with the requirements of AI innovation.
To address the issue, the Working Paper proposes a hybrid licensing model under which AI developers would receive a statutory blanket licence to use lawfully accessible copyrighted works for training purposes, with royalty obligations arising only upon commercial deployment of AI models. A government-appointed body would administer royalty collection, subject to regulatory oversight and judicial review.
The Working Paper is open for public consultation, and Part II, expected to address authorship and copyrightability of AI-generated works, will follow.
Source: DPIIT Working Paper on Generative AI and Copyright