India Proposes Mandatory Royalty System for AI Companies Using Copyrighted Content

Dec 11, 2025
TechCrunch
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Summary

India proposes groundbreaking mandatory royalty system forcing AI giants like OpenAI and Google to pay creators for using copyrighted content in training models, marking one of the world's most aggressive regulatory approaches as tech industry groups strongly oppose the intervention.

Key Points

  • India proposes a mandatory royalty system requiring AI companies like OpenAI and Google to pay creators when training models on copyrighted content through a central collecting body
  • The framework would grant AI firms automatic access to all copyrighted works in exchange for mandatory payments, positioning India as taking one of the most interventionist regulatory approaches globally
  • Tech industry groups including Nasscom and the Business Software Alliance oppose the proposal, arguing for text-and-data-mining exceptions instead of mandatory licensing requirements

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