India proposes royalty system requiring AI companies to pay creators for training data
India’s new plan could make AI firms pay for the books, music, art, and media their models learn from, reshaping how creators are compensated.
If you have ever posted your work online, streamed a song, or read an article, there's a chance that an AI model has learned from it. Big AI systems have been trained using massive collections of public content from news sites, books, music, and art. This helped AI improve very fast, but most creators were never paid for their work.
India wants to change that. A panel from the Department for Promotion of Industry and Internal Trade (DPIIT) has proposed a new system that allows AI companies to train on copyrighted material only if they pay royalties to the original creators. The goal is fair compensation without slowing down innovation.
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What the proposed AI rule says, and how it would work
The plan recommends what’s called a “blanket licence.” That means any AI company, big or small, could train on any lawfully accessed Indian content (books, music, films, art, news) without needing permission from each creator. Instead, they’d pay a fee to a centralized body. That body would collect royalties and pass them to the rights holders, even if they are small or independent creators.
Royalty rates would be set by a government-appointed committee. The fee would apply only once the AI product is commercial, meaning that if a tool uses a model for free or hobby use, royalties may not apply.
This proposal, a “one national licence, one payment” model, aims to reduce red tape for AI builders while giving creators a fair share. It’s meant to avoid the mess of negotiating with every single writer, artist, or musician whose work is used.
Emmanuel Oyedeji
If you use AI tools made by global companies, you might see changes soon. For AI developers, royalties might increase the cost of building models, and those costs could be passed on to users. If you are a creator in India, a writer, musician, or artist, this could open a new income stream: each time an AI model uses your work, you could be compensated via the royalty system.
For users, the systems behind AI services could become more transparent: there might be clearer records of what content was used, and more respect for copyright and creator rights.
India’s proposal doesn’t kill AI; it reshapes its rules. The goal is to keep AI moving and powerful, while making sure creators don’t get left out. If adopted, it could set a new global standard for ethical AI development, one where creators get paid, and AI firms build responsibility. However, it's not guaranteed.
The next few weeks, when India collects feedback on the plan, will matter a lot. Whatever happens, for the first time, many voices in AI will get heard: not just tech leaders, but artists, writers, and everyday creators too.
Oyinebiladou Omemu
