In world first, India moves to compel AI developers to pay creators for model training data

India’s government proposes a mandatory licensing regime for AI developers, establishing a statutory remuneration right for content creators. This "hybrid model" aims to balance technological innovation with the rights of copyright holders by requiring blanket licenses and fixed royalty payments. The framework seeks to provide a clear legal roadmap for accessing protected works during the training phase of machine learning systems, ensuring that creative labor is proportionately compensated as the generative AI ecosystem evolves. The industry strongly opposes this approach, characterizing it as a "tax on innovation" that lacks credible market evidence. Major bodies like Nasscom argue for Text Data Mining (TDM) exemptions, citing global precedents in the EU and US where such compulsory licensing is not favored. Despite this resistance, the government remains aligned with the committee’s recommendations, insisting that the proposed structure meets multifaceted objectives by enabling wide-ranging training access while safeguarding creators' interests through a centralized royalty distribution mechanism. This development is critical for open_data discussions because it directly challenges the assumption that data training requires unrestricted access. By mandating compensation and licensing, India creates a precedent where open usage is conditional upon economic reciprocity. This forces a re-evaluation of open data principles, highlighting the tension between the free flow of information for algorithmic improvement and the legal necessity of protecting intellectual property rights. The outcome will influence how open datasets are managed globally in the face of increasing AI dependency.

Source: thehindubusinessline.com
Published on 2025-12-10

In world first, India moves to compel AI developers to pay creators for model training data

Related news