Foreign AI companies and GCCs need to register IP here, they are harvesting Indian brains: Zoho’s Sridhar Vembu

Sridhar Vembu

Zoho’s founder and Chief Scientist, Sridhar Vembu, has called for foreign artificial intelligence (AI) companies and Global Capability Centres (GCCs) operating in India to register their intellectual property (IP) in the country, saying that India’s top talent is being used to generate immense value overseas without commensurate benefits flowing back to the Indian economy.

“Why are Indian citizens working in India, generating valuable intellectual property, and why should that IP be registered only in America and not in India? And why should Indian taxes not be paid on the profits from that IP? Our brains are being harvested for it. Why shouldn’t we get paid for it?” Vembu said in an interview with Moneycontrol.

He urged the government to make it mandatory for companies developing technology or AI models in India to register the resulting IP locally or license it to the parent entity abroad.

“If something is based in India, make sure that they comply with Indian law and make sure those laws include, for example, that the IP has to be registered in India or licensed to the parent. I think that should be an easy change,” he added.

Watch the full interview here

Vembu argued that while India’s software talent continues to contribute to global innovation, the country should not settle for “asymmetrical terms” that allow profits and IP ownership to flow out of India.

“We must ensure that we can trade on equal terms, not these asymmetrical terms we are forced to live with today,” he said.

Zoho, one of India’s largest SaaS (software-as-a-service) firms, has long advocated for local technology sovereignty and the need for India to develop its own deep-tech and AI infrastructure rather than relying solely on global giants.

The company has consistently built its products in-house in rural India and has resisted foreign capital to maintain independence.

Vembu’s remarks come at a time when India has seen an explosion of Global Capability Centres, captive technology and R&D hubs set up by multinational firms, which employ over 1.6 million professionals and contribute billions in exports.

GCCs have seen massive growth in India, and the sector is poised to contribute 3.5 per cent to India’s GDP by 2030. GCCs are set to employ over 21 lakh professionals, in around 1800 GCC units, by the end of 2025, from 15 lakhs in 2020.

Also Read: Indian GCC leadership roles up 30% to 6,500; returning NRI professionals taking on key positions

However, most IP generated in these centres is registered overseas, depriving India of potential tax revenues and ownership rights.

The comments also coincide with India’s growing push to build indigenous AI models and reduce dependence on foreign AI ecosystems dominated by US tech firms.