News Summary

India has introduced a groundbreaking proposal requiring AI companies like OpenAI and Google to pay royalties to content creators whose work is used to train AI models. This mandatory royalty system aims to ensure creators are compensated and to create a balanced framework for AI training. The Indian government panel suggests that AI firms should have automatic access to copyrighted content in exchange for payments to a central collecting body representing copyright holders. The proposal stands out from other jurisdictions like the US and EU, where fair use is often cited by AI companies to avoid such payments. As governments globally develop regulations to address AI-related copyright issues, India’s approach could reshape how AI companies operate in one of their most significant markets. The proposal, which has been opened for public consultation, has faced dissent from industry bodies like Nasscom and the Business Software Alliance, who argue that it could stifle innovation and propose alternatives such as a broad text-and-data-mining exception.