DPIIT Releases Draft Policy on AI and Copyright, Proposes Hybrid Licensing Model

The Department for Promotion of Industry and Internal Trade (DPIIT) has released the first part of its working paper outlining how India should tackle copyright challenges posed by generative artificial intelligence, the Ministry of Commerce & Industry said on Tuesday.

The document is based on recommendations from an eight-member committee formed on April 28 to examine whether India’s existing copyright framework is sufficient and to propose amendments where necessary.

The working paper analyses several international models — such as blanket exemptions for AI training, text-and-data-mining exceptions with opt-out options, voluntary licensing, and extended collective licensing. After reviewing these approaches, the committee found that none adequately balance the need to protect creators with the need to promote AI innovation in India.

The committee also dismissed the concept of a “zero-price licence,” which would let AI developers use all content for free. It warned that such a system would undermine incentives for human creativity and eventually reduce the production of high-quality creative works.

Instead, the paper recommends a hybrid policy model. Under this system, AI developers would receive a blanket licence to use any legally accessed content for training, eliminating the need for individual permissions or negotiations. Royalties would only be charged once the AI systems are commercially deployed. A government-appointed committee would set royalty rates, which would remain subject to judicial review.

A centralised mechanism would handle the collection and distribution of royalty payments. According to the committee, this would simplify compliance, ensure fairness for creators, and reduce legal and administrative burdens for AI companies of all sizes.

The paper also acknowledges the key contributions of Dr. Raghavendra Rao, along with support from D. Sripriya, Kushal Wadhawan, and Priyanka Arora in preparing the draft.

With the release of Part 1, DPIIT has opened the draft for public consultation. Stakeholders and the general public have 30 days to submit feedback, helping shape India’s long-term policy on AI and copyright.

—With inputs from IANS