India is exploring a proposal that would require artificial intelligence companies to pay licensing fees for using copyrighted Indian content to train their AI models. The move is intended to ensure that writers, artists, publishers, and other content creators are compensated when their work is used as training material. As AI adoption accelerates across industries, the government is seeking a structured way to balance innovation with creator rights.
The proposed framework differs from approaches seen in the US and Europe. Instead of relying on fair-use interpretations or opt-out mechanisms, India’s plan suggests a mandatory licensing system tied to an AI company’s overall revenue. A central authority would be responsible for collecting fees and distributing payments to registered rights holders, reducing the need for prolonged legal disputes over data usage.
Industry responses have been divided. Technology groups argue that mandatory fees could raise costs, discourage startups, and slow AI innovation in the country. There are also concerns about practical implementation, such as how to accurately assess the contribution of individual works to AI models and whether smaller creators would truly benefit from pooled compensation systems.
Despite the concerns, the proposal signals India’s intent to assert greater control over its data ecosystem. With its vast population, linguistic diversity, and growing digital content base, India holds valuable training data for global AI firms. If implemented, this policy could set a precedent for other countries seeking stronger leverage over how local data is used in the development of artificial intelligence.
