Context: A DPIIT-led committee has released a working paper titled “One Nation, One License, One Payment”, proposing a statutory licensing framework to govern the use of copyrighted content for Artificial Intelligence (AI) training. If implemented, India would become the first country to adopt a nationwide compulsory licensing system with retrospective royalty obligations for AI developers.
What is the Proposal?
The proposal seeks to address growing conflicts between AI developers and content creators by introducing a blanket compulsory licence. This would allow AI developers to train models on all lawfully accessed copyrighted works without negotiating individual licences, in return for statutory royalty payments.
A key institutional innovation is the creation of a Copyright Royalties Collective for AI Training (CRCAT)—a non-profit body that would collect royalties from AI companies and distribute them to authors, publishers, musicians, artists and other rights holders.
Royalty rates would be fixed through a revenue-linked, government-appointed expert committee, ensuring uniformity across India.
Notably, the proposal also recommends retroactive royalty payments from AI systems that are already commercially successful.
Why India Needs an AI Royalty Framework
India’s Copyright Act, 1957 does not explicitly provide exceptions for text-and-data mining or AI training, creating legal uncertainty.
At the same time, creative sectors such as publishing, news media, music and cinema—worth thousands of crores annually—receive no compensation despite extensive use of their content in AI datasets.
A statutory model would ensure fair compensation, prevent exploitative licensing practices, and create a level playing field between global AI giants and India’s vast base of creators. With over 1.3 million registered creators, India has the scale to shape global norms in AI governance.
Additionally, a clear licensing regime could reduce copyright litigation under Section 51 of the Act, where multiple cases are already pending against unlicensed AI training.
Key Challenges
The proposal faces several hurdles. No major economy currently uses government-mandated royalty rates for AI training, raising concerns about global compatibility.
Fixing fair rates across more than 20 copyright categories—books, music, films, photographs, software—will be complex.
CRCAT will require advanced technical capacity to audit datasets and revenues. There are also concerns that retroactive payments may strain early-stage Indian AI startups operating on thin margins. Judicial scrutiny of royalty rates could further delay implementation.
Way Forward
A phased and adaptive approach can mitigate risks. Flexible royalty tiers, periodic rate revisions, and concessional slabs for startups can balance innovation with creator rights.
Continuous dialogue between AI firms and creative industries, along with strong digital infrastructure within CRCAT, will be critical for effective rollout.
Conclusion
The “One Nation, One Licence, One Payment” proposal represents a bold attempt to reconcile AI innovation with copyright justice.
If carefully implemented, it could position India as a global rule-setter in AI-copyright governance.