DPIIT Proposes Hybrid AI Copyright Model

DPIIT Proposes Hybrid AI Copyright Model

The alternative proposed is a hybrid model. Under this model AI developers are granted a blanket license for the use of all lawfully accessed content for training purposes.

RMN News Technology Desk
New Delhi | December 9, 2025

The Department of Promotion of Industry and Internal Trade (DPIIT) published Part 1 of its working paper examining the intersection of generative artificial intelligence (AI) and copyright law on December 9 2025. This paper compiles the recommendations of an eight-member Committee. The Committee was constituted on April 28 2025 to assess the adequacy of existing law concerning generative AI and to recommend amendments if necessary.

The working paper evaluates various existing approaches. These approaches include blanket exemptions, text and data-mining exceptions (with or without an opt-out right), voluntary licensing, and extended collective licensing. Due to suitability concerns explained in the paper, the Committee proposes a new policy framework. This framework aims to strike a balance between the rights of content creators and AI innovators.

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The Committee rejected the zero price license model. They argue that adopting such a model would undermine incentives for human creativity. Moreover this approach could lead to the long-term underproduction of human generated content.

The alternative proposed is a hybrid model. Under this model AI developers are granted a blanket license for the use of all lawfully accessed content for training purposes. This approach eliminates the need for individual negotiations. Royalties become payable only upon the commercialization of the AI tools.

A government appointed committee will set these royalty rates. These set rates would remain subject to judicial review. To reduce transaction costs and provide legal certainty, a centralized mechanism is proposed to handle the collection and distribution of royalties. This centralized system is also intended to support equitable access for both large and small AI developers.

In announcing the release, DPIIT has opened the draft for public and stakeholder consultation for 30 days. The department is actively inviting public feedback on the proposed model.