India Proposes Landmark AI Law: Royalties for Training Content

• India proposes a landmark AI law mandating royalty payments from Generative AI developers for using copyrighted content to train their models.
• A DPIIT working paper rejects "zero-price" and blanket exceptions, stating unrestricted use would harm the creative ecosystem.
• The proposed "Hybrid Statutory Licensing Model" offers a mandatory blanket license for AI developers, with royalties triggered upon commercialization at government-set rates.
• This model aims to ensure fair compensation for all creators via a centralized system, balancing legal certainty for AI startups with revenue for the creative industry.
• The Ministry of Electronics & IT supports the approach, but industry body Nasscom dissents, advocating for a full Text and Data Mining (TDM) allowance with opt-out mechanisms.

Why It Matters: India's proposed AI law will make developers pay for content, reshaping AI and creator rights.