Govt panel proposes blanket licence for AI firms to use copyrighted works; seeks public views

New Delhi: Seeking public views, a government committee has proposed giving a mandatory blanket licence to artificial intelligence developers for using all legally accessed copyright-protected works to train AI systems.

However, the licence should be accompanied by a statutory remuneration right for the copyright holders, according to the committee's recommendation.

These suggestions are part of a working paper prepared by the committee and released by the Department for Promotion of Industry and Internal Trade (DPIIT) seeking stakeholders' views.

Recognising the growing need for deliberations on emerging issues pertaining to AI (artificial intelligence) systems and copyright, the DPIIT formed a committee on April 28, 2025.

The eight-member panel was headed by additional secretary Himani Pande. It also consists of legal experts, and representatives from industry, and academia.

It was tasked to identify the issues raised by AI systems, examine the existing regulatory framework, assess its adequacy, and recommend changes if necessary, besides preparing a working paper for consultation with stakeholders.

The committee has prepared the working paper -- part 1, which was released by the department in public domain on December 8. It has sought feedback and views of all concerned stakeholders within 30 days.

"With a majority view, the committee decided to recommend a mandatory blanket licence in favour of AI developers for the use of all lawfully accessed copyright-protected works in the training of AI Systems, accompanied by a statutory remuneration right for the copyright holders," the paper said.

Under this framework, it said, the rights holders will not have the option to withhold their works from use in the training of AI Systems.

"By preserving the right of the copyright owners to receive royalties and administering it through a single umbrella organisation made by the rights holders and designated by the government, the model aims to provide an easy access to content for AI Developers for AI Training, simplify licensing procedures, reduce transaction costs, ensure fair compensation for rightsholders," it added.

This hybrid model also offers a single window for AI developers to gain access to copyrighted works for AI training, it said.

According to the paper. Generative AI has immense potential to transform the world for better, underscoring the need for a regulatory environment that supports its development.

However, the processes by which the AI systems are trained, often using copyrighted materials without authorisation from copyright holders and the nature of the outputs that they generate, have sparked an important debate around copyright law.

It said that the central challenge lies in how to protect the copyright in the underlying human-created works, without stifling technological advancement.

"To address this, a balanced regulatory architecture is required to preserve the integrity of the creative ecosystem in the country while encouraging AI innovation," it said.

Further, it said that the committee recognised that access to large volumes of data and high-quality data is crucial for AI development.

Long negotiations and high transaction costs can hold back innovation, particularly for startups and MSMEs, it said.

It added that the panel has decided to adopt a hybrid approach which ensures availability of all lawfully accessed copyrighted content for AI Training as a matter of right, without the need for individual negotiations; reduced transaction costs for the developers; and reduced compliance burden for them.

It has suggested fair compensation to copyright holders; judicial review over royalty rates established; easy and straightforward process of payment to rightsholders; and level playing field for start-ups and small players.