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India’s IT Ministry Backs Statutory Royalties for AI Training as Tech Industry Presses Lawful Access

The plan shifts copyright from control to remuneration via a new regulator, with valuation and distribution rules still unresolved.

Overview

  • MeitY backs statutory licensing that permits training on copyrighted works without prior consent in exchange for revenue-linked royalties.
  • The framework would be run by a proposed Copyright Regulatory and Compensation Authority for Training (CRCAT) to set revenue floors, allocate royalties, and resolve disputes.
  • The government told Parliament the DPIIT committee has finalized Part 1 of its paper proposing a mandatory blanket license for AI training instead of TDM exceptions or consent-based models.
  • Industry groups led by the BSA advocate a lawful access TDM exception, argue training analyzes non-expressive patterns, and warn licensing burdens could slow innovation and disadvantage smaller developers.
  • Major implementation questions persist, including valuation methods, royalty distribution, CRCAT’s authority and checks, and the extent to which India will diverge from Japan and Singapore’s lawful TDM approach.