MeitY backs DPIIT’s AI copyright licensing model, calls for revenue sharing

In the coming two months, DPIIT will release its second working paper on the AI-copyright issue

The ministry of electronics and information technology (MeitY) has endorsed the DPIIT committee’s proposed framework for the use of copyright content in training artificial intelligence systems.

Across the world, several publications and individual authors among others have taken firms such as OpenAI, Microsoft and Meta to court over copyright infringement for using their content for training large language models without permission or payment.

In its remarks, annexed to the government’s working paper on AI and copyright, MeitY said the proposed model, which combines a mandatory blanket licence for AI training with a statutory right to remuneration for copyright holders, strikes a balance between enabling large-scale AI development and recognising creative labour.

"After careful examination of the hybrid model of statutory licensing with revenue-based compensation proposed by the committee, the ministry is of the opinion that the proposed model has the potential to equitably meet its multifaceted objectives across the domains of technological innovation and creative labour," MeitY's said.

Also read: India’s proposed AI copyright overhaul: What the draft licensing model really means

Wide-ranging access to datasets is essential to build accurate and inclusive AI systems but it must be accompanied by "proportionate compensation" to rights holders, it said.

"The model enables wide-ranging training access for AI developers while ensuring proportionate compensation for copyright holders," the ministry added.

MeitY recommended that the proposed Copyright Royalties Collective for AI Training (CRCAT) — the central body envisioned to collect and distribute royalties — should prescribe a minimum revenue threshold, beyond which AI developers would be required to share revenues with copyright holders.

This would ensure that early-stage developers and startups are not burdened prematurely, while still capturing value once AI systems are commercialised, it said.

"While operationalising this framework, the ministry is of the view that CRCAT should prescribe a minimum revenue threshold above which royalty sharing will take effect," it added.

Also read: Major tech firms flag “market harm” in India’s AI copyright proposal

The ministry also emphasised the need for a "robust" and transparent revenue-sharing mechanism, warning that ambiguity around allocation could trigger disputes. It urged CRCAT to adopt a proactive approach in addressing questions around how royalties are calculated and distributed, arguing that participatory and communicative leadership could help "preclude disputes and litigation".

Industry body Nasscom, however, has dissented, arguing that a text and data mining exception with opt-out rights for copyright holders would better support India’s AI ecosystem — a position noted separately in the working paper.