DAILY NEWS ANALYSIS
27 January, 2026
4 Min Read
The Indian government is undertaking a major reform of the Copyright Act, 1957 to address the challenges posed by Artificial Intelligence (AI) in the creation and use of copyrighted works. This reform is based on a hybrid model, balancing the needs of AI innovation with the rights of creators.
Hybrid Model Overview:
Introduces a mandatory blanket license allowing AI developers to use copyrighted works for training AI systems.
Grants creators a statutory right to remuneration for the use of their works.
Aims to balance innovation and creator rights, positioning India differently from the European Union, which emphasizes transparency, and the United Kingdom, which provides limited recognition to computer-generated works.
Proposed Changes to the Copyright Act, 1957
1. Blanket License for AI Developers
AI developers will receive a non-negotiable, universal license to use all lawfully accessed copyrighted works for AI training.
Rights holders cannot withhold their works from being used in AI training.
Eliminates the need for individual permissions currently required under Section 14, which grants the owner exclusive rights to reproduce, adapt, or communicate their works.
2. Statutory Remuneration Rights
Copyright holders will be entitled to royalties even without providing explicit consent.
Royalties will be calculated as a fixed percentage of revenue generated from AI systems trained on copyrighted content.
AI firms pay royalties only after commercialization, not during data collection or training.
3. Centralized Collection and Distribution Mechanism
The government will establish a centralized non-profit entity to collect royalty payments from AI developers.
This entity will include Copyright Societies and Collective Management Organizations (CMOs) as members.
4. Protection for Startups and MSMEs
The proposed reforms may include concessional provisions or differential royalty structures to support startups and MSMEs, ensuring a level playing field.
Need for Amendments
1. Absence of AI-Specific Definitions
The current Copyright Act does not define terms such as Artificial Intelligence, Generative AI, machine learning, or training data.
This creates legal uncertainty about how AI systems and text-and-data mining (TDM) activities fit under the existing law.
2. Ambiguity on AI Training as Copyright Use
It is unclear whether AI training constitutes reproduction, adaptation, or infringement under Section 14.
There is uncertainty about whether AI training qualifies as fair dealing under Section 52.
3. Unauthorized Use of Copyrighted Materials
AI systems currently rely on mass-scale scraping of copyrighted content without consent, bypassing the permission-based framework of the Act.
4. Copyrightability of AI-Generated Works
Section 2(d)(vi) defines an author as a human, leaving AI-generated content without clear ownership or copyright protection.
Section 2(ffc) treats computers as tools, adding further ambiguity over AI-created works.
5. Cross-Border and Jurisdictional Issues
Section 40 protects foreign works territorially but does not address AI systems trained abroad on Indian works or cloud-based AI models, creating enforcement challenges.
Key Sections of the Copyright Act, 1957
Section 2: Defines types of works covered, e.g., literary works (2(o)) and dramatic works (2(h)).
Section 13: Extends copyright protection to literary, musical, dramatic works, films, and sound recordings.
Section 14: Grants exclusive rights to reproduce, adapt, publish, translate, or communicate works, which cannot be exercised without the owner’s permission.
Judicial Interpretations
Mr. Dattatray Bapu Dighe v. State of Maharashtra (2024): Copyright exists automatically upon creation; registration is not mandatory.
Star India Pvt. Ltd v. Magicwin.Games (2024): Digital piracy websites hosting copyrighted content were permanently blocked.
India TV v. Yashraj Films (2012): Small usage of songs does not constitute copyright infringement.
Oxford v. Rameshwari Photocopy Services (2016): Photocopying book excerpts for educational purposes is fair dealing, promoting public access to knowledge.
Global Approaches to AI-Generated Content
|
Country |
Approach |
|
USA |
Requires substantial human creativity; purely AI-generated works are not protected (Thaler v. Perlmutter, 2023). |
|
European Union |
AI Act (2024) mandates training data transparency; sui generis rights for AI outputs are under discussion. |
|
China |
AI-generated images are protected if human originality contributes. |
|
UK |
Section 9(3) of the Copyright, Designs and Patents Act, 1988 grants copyright to the person arranging computer-generated works; moral rights are excluded. |
Conclusion
The proposed amendments to the Copyright Act, 1957 aim to:
Introduce a mandatory blanket license for AI training.
Ensure statutory royalties for creators.
Address gaps in AI-related definitions, training, and authorship.
Establish a centralized royalty collection mechanism, ensuring fair compensation while promoting AI innovation in India.
Source: THE HINDU
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