The Ministry of Industry and Internal Trade Promotion (DPIIT) of India has released a 125-page proposed framework, planning to introduce a "mandatory bundle license" system globally. AI companies can automatically use all legally published copyrighted works for model training, but must pay copyright fees to a newly established central collective management organization, which will then distribute the fees to creators.
Core mechanism: One-stop payment + automatic licensing
- Scope of application: All legally published works, including text, music, audiovisual, news, etc.
- Fee model: AI companies pay a unified fee to the "one-stop collective management organization," eliminating the need for individual negotiations; both registered and unregistered authors can share the proceeds
- Regulatory logic: Reduces compliance costs while "ensuring creators receive payment from day one"
Market background: India = Second-largest GenAI market globally
The committee cited Sam Altman, CEO of OpenAI: India is now OpenAI's second-largest market after the US, and "is likely to become the largest market"; therefore, AI companies should not only generate revenue in India but also return value to local creators.
Industry reaction: Google and OpenAI have not responded yet
- Nasscom (representing Google, Microsoft, etc.) submitted an objection: It advocates introducing a "Text and Data Mining (TDM) exception + opt-out" mechanism, warning that mandatory licenses may suppress innovation
- BSA Software Alliance (including Adobe, AWS, Microsoft) urges India to adopt a clear TDM exception, arguing that a "pure licensing model" is impractical and could lead to reduced model performance and increased bias.
Legislative timeline: 30-day public consultation
- Starting today: The government opens a 30-day public opinion collection period
- Q1 2025: The committee consolidates feedback → submits the final text → parliamentary review
- If passed, it can take effect within 2025; non-compliant companies face fines and import bans.
Global ripple effect: First shot of the copyright "hard landing"
- United States & European Union: Still in a tug-of-war between "fair use" and "licensing negotiations," with courts not yet setting clear boundaries
- India's plan: Bypasses lengthy litigation, directly establishing legality through "mandatory payments," providing "minimum guaranteed income" for publishers, music, and film industries
- If successful, Brazil, Indonesia, and other emerging markets may replicate the "India model," reshaping cross-border AI training cost structures.
Next steps to watch
- Rate standards: The committee has not yet published a tariff schedule; excessively high rates may suppress entry of small and medium enterprises
- Exit mechanism: Currently, right holders cannot individually opt out, only vote within the collective management organization to influence the rate
- Model performance: Will a unified payment pool lead to "averaging" of training data, thus affecting the diversity and accuracy of large models? This still needs empirical testing
Editorial conclusion
