DPIIT Committee Proposes Royalty Model for AI Content Access in India

The Hindu
The Hindu
3h ago • 2 views
The DPIIT's working paper suggests AI large language models should freely access online content, with royalties managed by a copyright society to balance creators' and developers' interests.
DPIIT Committee Proposes Royalty Model for AI Content Access in India
A What happened
India's DPIIT committee has put forward a significant working paper addressing AI large language models' (LLMs) access to online content amid copyright concerns, releasing the draft in December 2025 and inviting public feedback for 30 days. The committee recommends that LLMs, exemplified by ChatGPT, be allowed free access to content freely available on the internet with no opt-out option for publishers, aiming for a clear legal framework that supports AI innovation while compensating content creators. To that end, the paper proposes creating a non-profit copyright society to collect royalties for the use of such content, encompassing both members and non-members of the society, akin to India’s compulsory licensing framework for radio stations. This model would impose a statutory fee payable to rights holders, reducing ongoing copyright litigation uncertainties exemplified by the Digital News Publishers Association’s lawsuits against OpenAI. Industrial dissent was voiced by Nasscom, which opposed mandatory royalties and favored freedom from paying for content scraping, arguing mandated fees would stifle innovation and that content owners should have an opt-out mechanism. The committee countered that smaller content creators lack the means to enforce opt-outs, underscoring the need for a blanket, enforceable system. The royalty distribution scheme is designed to consider web traffic metrics and publisher credibility, with formal appeal channels through judiciary systems to resolve disputes. The recommendation reflects an effort to balance rights protection and AI development pressures, although it may face challenges from both AI firms, concerned about additional costs when many are currently unprofitable, and from publishers seeking more valuable compensations for their content’s role in AI training.

Key insights

  • 1

    Proposal for Copyright Society: The working paper suggests establishing a copyright society to collect and distribute royalties from AI developers to content creators, including non-members.

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    No Opt-Out for Content Access: The committee recommends that AI models have unrestricted access to freely available online content without publishers being able to opt out.

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    Balancing Stakeholder Interests: The approach tries to balance AI developers' needs for large data sets and content creators' rights by proposing compulsory licensing with statutory fees.

Takeaways

The DPIIT committee's working paper introduces a novel compulsory licensing proposal to govern AI models' access to online content in India, aiming to balance innovation needs with copyright protection through a royalty-collecting body, pending public consultation and potential legislative action.

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