Centre suggests obligatory AI licence, creative rights protected by royalty payments
India intends to apply for a universal licence for AI training which will allow the developers to use copyrighted content and, at the same time, the creators would be entitled to payment. The new DPIIT policy is to set a standard of signing and strong intellectual property rights protection along with the foundation of the AI innovation.
image for illustrative purpose
With the rise of AI in India, the government has brought forth a plan to entirely transform the copyright and intellectual property regulations of the country. The Department for Promotion of Industry and Internal Trade (DPIIT) has put forward an idea that would be a great change in the manner AI companies are allowed to train their models and how creators would be rewarded.
The Centre has put forward the idea of a mandatory universal licence which would enable AI companies to use any copyright-protected content that is legally accessed as input to their training of systems. Creators, i.e., artists, musicians, writers and news publishers, would, however, be the ones to get the legal compensation for the everyday use of their work.
This proposal comes as an answer to the mounting worries of global content authors that AI systems have been using copyrighted material without the owners’ consent for the training process.
The three-page paper with the title titled, "One Nation, One Licence, One Payment: Balancing AI Innovation and Copyright," proposes to weigh the scales between the two extremes of technology and creation. The government invites remarks from the sector stakeholders, publishers, copyright societies and AI companies prior to the policy declaration.
Why this change is crucial
The DPIIT says that while generative AI may have “astounding capacity to change the world,” the way these systems acquire knowledge—most often by getting rid of huge amounts of copyrighted text, music, and images—has stirred a worldwide debate on copyright violation.
Presently, Indian law does not clearly state that AI can use copyrighted works without a licence. This has resulted in legal battles, one of which is notable, where ANI has sued OpenAI for allegedly using its copyrighted news content while training ChatGPT.
Main suggestions from DPIIT's committee
An eight-member working group analyzed the respective Indian and international copyright norms and proposed the following actions:
A universal, non-negotiable licence for AI developers allowing them to use all copyrighted texts which they have legally gained access to for training purposes.
A legal right of payment which guarantees that authors will get compensation for the particular use of their works.
The owners of copyright cannot refuse to let AI work on their creations.
A major non-profitable organisation, fully supported by the government and completely managed by the copyright holders, should be set up for the purpose of collecting and distributing royalties.
Copyright societies and CMOs will be among members, with each representing one specific category of copyrighted works.
The fees charged will be determined by a government-appointed panel of experts.
AI developers are to pay a certain percentage of the income generated by the AI as royalties.
A single-window system for AI developers to get access to the copyright-protected material that they need for training.
Non-members will also be able to receive royalties if they register their works.
The empty legal space
Right now, the usage of copyright-protected material for AI training without the owner's consent is called infringement under Section 51 of the Copyright Act, 1957. Nevertheless, the law does not cover any specific AI scenario so there is a vast area of grey.
Many publishers and media companies have approached the courts to protect their rights to intellectual property. With Prime Minister Modi's upcoming visit to the US and the ongoing worldwide discussions about AI governance, the government, through its new IPR policy, is seeking to be "in sync" with the global standards for AI.
A very careful balancing act
DPIIT stresses that the makers of policy have to offer creators the support they need and at the same time, facilitate the process of innovation. India wants to be the global leader in AI development - but not at a cost to the rights of the creators and the equitable remuneration.
The intended universal concession system is an attempt to fill this void, it guarantees that the AI companies can create new things and at the same time the creators will be paid for their contribution.
