India Plans to Make AI Firms Pay for the Content They Train On

India is moving toward a major shift in how AI companies use copyrighted content. They are proposing a system that requires tech firms to pay creators for the material their models learn from. The government has released a working paper outlining a mandatory licensing framework. It would require AI companies to pay royalties—collected and distributed by a central body—to creators whose work is used for training. Public comments are open for 30 days.

The proposal suggests that a committee will set a royalty rate based on a percentage of an AI company’s global revenue. Payments will kick in only once an AI model is commercialised. Importantly, the framework also proposes retroactive payments. It requires companies to compensate creators for past use of their content.

This move comes amid an ongoing copyright infringement case filed by news agencies, publishers, and digital creators against OpenAI in the Delhi High Court.

According to sources, the government may amend the Copyright Act after reviewing public feedback to enable this royalty system. Once companies pay the prescribed royalty, they would be free to use any publicly available copyrighted content without seeking individual permissions. This is a key demand from the AI industry. Meanwhile, it ensures creators get compensated.

Creators, however, would need to register their work with the central authority to receive payments. The proposed royalty rates would remain open to judicial review.

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