As the global discourse on artificial intelligence (AI) grapples with the contentious issue of crediting content used to train large language models (LLMs), India has proposed a solution aimed at addressing these concerns. The Indian government’s recent white paper outlines a hybrid statutory licensing system that will allow AI developers to use copyrighted material, which is deemed “lawfully accessible,” for training under a mandatory blanket license.
The proposal, which has been welcomed as a timely attempt to align with international AI policy, has sparked criticism, particularly from within industry circles. Media firms, research organizations, and content creators have expressed concerns that they are being sidelined as major technology companies leverage their work to enhance AI tools without adequate compensation.
This situation echoes a historical precedent where search engines profited from aggregated content while content creators received little to no reward. A notable example is the ongoing legal battle involving The New York Times, which has accused OpenAI, the parent company of ChatGPT, and Microsoft of using its copyrighted content without permission to train AI models.
India’s proposal seeks to streamline data usage for AI development by establishing a Copyright Remuneration Collective for AI Training (CRCAT). This entity would collect payments from AI firms and distribute them to existing copyright societies or collective management organizations (CMOs) that creators could join. Notably, the proposed rules stipulate that payment would only be necessary when the AI tool is commercialized, with retroactive obligations to compensate for prior use of training materials.
Proponents, such as Neelima Vobugari, co-founder and COO of the AI firm AiEnsured, argue that the framework encourages better record-keeping and enhances the quality of licensed datasets. “This can reduce AI mistakes like hallucinations and make bias checks more accurate,” she noted.
However, the response from global tech companies has been predominantly negative. Critics argue that the proposed model is overly complex and could hinder the growth of India’s AI sector. Concerns have been raised that the new norms might threaten the viability of India’s startup ecosystem. Pawan Prabhat, co-founder of the AI startup Shortfalls AI, highlighted the potential regulatory burden, stating, “The regulatory load will be enormous, and expecting a central agency to manage filings, verify claims, set royalties, and act as the middleman between creators and AI companies feels unmanageable.”
Prabhat further emphasized the complications arising from judicial oversight, questioning who would be willing to navigate such a risky environment. He noted that as AI is a global industry, India operating under a distinct set of regulations could create more friction than clarity. The government’s role as a mediator for royalty payments raises additional questions about how it would oversee the distribution process and manage disputes.
Public consultations on the proposal will remain open until January 7, after which the committee responsible for drafting the white paper is expected to release a revised version. The broader implications of this proposal are significant, as they could shape the future of AI development and copyright management in a rapidly evolving technological landscape.
As nations worldwide continue to grapple with the ethical and legal complexities posed by generative AI, India’s move may set a precedent that other countries could follow, potentially redefining the relationship between AI developers and content creators.
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