{"id":61231,"date":"2025-12-10T19:03:12","date_gmt":"2025-12-10T13:33:12","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=61231"},"modified":"2025-12-13T17:32:46","modified_gmt":"2025-12-13T12:02:46","slug":"ai-copyright-one-nation-one-licence","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/10-12-2025\/ai-copyright-one-nation-one-licence","title":{"rendered":"AI\u2013copyright Overhaul with \u2018One Nation, One Licence, One Payment\u2019 Model"},"content":{"rendered":"\n<p><strong>Syllabus: GS2\/Governance; GS3\/Artificial Intelligence<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The DPIIT-led committee has released a working paper titled <strong>\u2018One Nation, One License, One Payment: Balancing AI Innovation and Copyright\u2019.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The DPIIT-led committee has recommended a <strong>\u201chybrid model\u201d<\/strong> of <strong>compensation for use of copyrighted content in AI training.<\/strong><\/li>\n\n\n\n<li>If implemented, India would become the <strong>only country to prescribe a statutory licensing regime for AI developers, <\/strong>with royalty rates prescribed by a government-appointed committee.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Its Key Features<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Aim: <\/strong>To protect the rights of IP holders (by having a compensatory model) and at the same time ensuring mandatory licensed access to quality datasets for AI developers.<\/li>\n\n\n\n<li><strong>Mandatory Blanket Licence: <\/strong>All AI developers will be required to obtain a statutory blanket licence to use all lawfully accessed copyright-protected works for training AI systems.<\/li>\n\n\n\n<li><strong>Statutory Remuneration Right for Creators:<\/strong> Creators and copyright holders will receive royalties mandated by law, instead of individually negotiated licensing deals.<\/li>\n\n\n\n<li><strong>Creation of CRCAT (Copyright Royalties Collective for AI Training): <\/strong>A new umbrella body designated under the Copyright Act, 1957 will:\n<ul class=\"wp-block-list\">\n<li>Collect royalties from AI developers.<\/li>\n\n\n\n<li>Distribute them among classes of copyright holders.<\/li>\n\n\n\n<li>Act as a centralised facilitator for the blanket licence.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>The Centre will constitute a committee to determine the royalty rate.&nbsp;<\/strong>\n<ul class=\"wp-block-list\">\n<li>It will consist of senior government officers, senior legal experts, financial or economic experts, and technical experts with expertise in emerging technologies.&nbsp;<\/li>\n\n\n\n<li>A CRCAT member from and AI developers\u2019 representative will also be part of the committee.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Royalty Rates: <\/strong>The panel will set royalty rates, while ensuring that they are fair, predictable, and transparent.\n<ul class=\"wp-block-list\">\n<li>It will also review and adjust rates every 3 years, to reflect technological and market developments.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Legal Relief: <\/strong>The rates set by the rate setting committee may be challenged before the court and would be subject to judicial review.<\/li>\n\n\n\n<li><strong>Rejection of Voluntary Licensing: <\/strong>The committee rejects private, voluntary licensing agreements (e.g., OpenAI\u2013AP deal) due to:\n<ul class=\"wp-block-list\">\n<li>High transaction costs,<\/li>\n\n\n\n<li>Unequal bargaining power,<\/li>\n\n\n\n<li>Risk of big companies monopolising licensing,<\/li>\n\n\n\n<li>Inadequate access to diverse training data.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Prerequisite of Lawful Access: <\/strong>AI companies cannot bypass paywalls or technological protection measures using the mandatory licence. They must have lawful access to data.<\/li>\n\n\n\n<li><strong>Retroactive Payments: <\/strong>It suggests retroactive payment of royalties in cases where copyrighted data has already been ingested into AI systems and also lays a framework for establishing burden of proof in related lawsuits.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Need for Such Model<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Infringement of Copyright Act:<\/strong> The AI training involves multiple acts of reproduction from downloading and storing works to generating temporary copies that raise clear infringement questions under India\u2019s Copyright Act.<\/li>\n\n\n\n<li><strong>Compensation to Copyright Holders:<\/strong> AI companies have non-discriminatory access to copyrighted work, there is a need that all copyright holders are compensated in an equitable way.&nbsp;<\/li>\n\n\n\n<li><strong>Growing Scepticism: <\/strong>It comes amid growing scepticism of news publishers in several jurisdictions over concerns of copyrighted material being used for training foundational models, without permission or payment.&nbsp;<\/li>\n\n\n\n<li><strong>Court Cases: <\/strong>Infringement has led to court cases where publishers have mounted a legal challenge against OpenAI over the unlawful utilisation of copyrighted material.<\/li>\n\n\n\n<li><strong>Commercialised Use by AI Developers: <\/strong>Many AI Developers have built AI Systems which are commercially successful and generate huge revenues.\n<ul class=\"wp-block-list\">\n<li>In order to ensure fairness and accountability, such AI Developers must be required to pay royalties to copyright owners for past usage of their works.&nbsp;<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Concerns Raised by Industry<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Concerns are being raised over the royalty rates fixed by a government-appointed panel.\n<ul class=\"wp-block-list\">\n<li>Companies argue that they should be allowed to discuss mutually beneficial licensing rates among themselves.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>It could lead to slowdown in AI development which ultimately harms India\u2019s ambitions to build and scale indigenous AI capabilities.<\/li>\n\n\n\n<li>The implementation must be fair and scale-dependent; otherwise, it risks becoming an entry barrier for startups and further strengthening incumbents.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It comes in the wake of soaring AI adoption, mushrooming AI startups and conflicts over the use of copyrighted content by AI developers.<\/li>\n\n\n\n<li>The government argues that a licensing framework allows domestic AI firms access to rich, copyright-protected datasets, reduces barriers to innovation and aligns with India\u2019s broader goal of building sovereign AI capabilities.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/indianexpress.com\/article\/business\/india-recommends-ai-firms-to-pay-creator-royalties-at-govt-panel-set-rates-10410785\/\" target=\"_blank\" rel=\"noopener\"><strong>IE<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>Context<\/strong><\/p>\n<li class=\"ms-5\">The DPIIT-led committee has released a working paper titled \u2018One Nation, One License, One Payment: Balancing AI Innovation and Copyright\u2019.<\/li>\n<p><\/p>\n<p><strong>About<\/strong><\/p>\n<li class=\"ms-5\">The DPIIT-led committee has recommended a \u201chybrid model\u201d of compensation for use of copyrighted content in AI training.<\/li>\n<li class=\"ms-5\">If implemented, India would become the only country to prescribe a statutory licensing regime for AI developers, with royalty rates prescribed by a government-appointed committee.<\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/10-12-2025\/ai-copyright-one-nation-one-licence\" class=\"btn btn-primary btn-sm float-end\">Read More<\/a><\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-61231","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/61231","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=61231"}],"version-history":[{"count":3,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/61231\/revisions"}],"predecessor-version":[{"id":61550,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/61231\/revisions\/61550"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=61231"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=61231"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=61231"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}