Development

The Department for Promotion of Industry and Internal Trade established a committee in April 2025 to examine the legality of using copyrighted works in the training and development of generative AI models, the copyrightability of AI-generated outputs, and international practice. The committee's report recommends a hybrid approach that balances AI innovation with creator compensation.

Key Recommendations

The committee recommends that AI companies be granted statutory blanket access to publicly available copyrighted works for training purposes, subject to a minimum legal compensation mechanism for copyright holders. This departs from the existing fair-dealing exception under Section 52 of the Copyright Act, 1957, which the committee found too narrow to cover the scale and commercial character of AI training. The committee reviewed international models including the EU's text-and-data mining exceptions, Japan's permissive training-use provisions, and voluntary licensing frameworks, and concluded that no existing approach adequately balanced creator rights with AI development needs.

On AI-Generated Outputs

The committee also examined whether works produced by generative AI systems are eligible for copyright protection. Under current Indian law, copyright vests in works created by human authors; the copyrightability of autonomously generated outputs remains unresolved. The committee's recommendations on this question will inform any future legislative amendment.

Significance

The DPIIT report is the most consequential policy intervention on the AI-copyright intersection in India to date. Its recommendation of a statutory compensation framework positions India between the EU's opt-out model and Japan's permissive approach. The report's reception and any resulting Copyright Act amendments will materially affect the operating environment for AI developers, publishers, and content creators in India.

This update is provided for general information and does not constitute legal advice.