Source: BABL AI

BABL AI details a landmark proposal by the Indian government to regulate the intersection of generative artificial intelligence and copyright law. The Department for Promotion of Industry and Internal Trade (DPIIT) unveiled the "Working Paper on Generative AI and Copyright – Part 1" in New Delhi on December 10, 2025. This document proposes a mandatory blanket licensing framework that would grant AI developers the right to use copyrighted material for training models, provided they compensate creators through a centralized system. The committee explicitly rejected broad "fair use" or text-and-data mining exceptions often seen in other jurisdictions, arguing that such exceptions would disproportionately harm human creators.

Under the proposed hybrid model, royalties would be collected and distributed by a new non-profit entity dubbed the Copyright Royalties Collective for AI Training (CRCAT). The government would set royalty rates subject to judicial review, ensuring that even creators who are not members of copyright societies can register to receive payments . The proposal argues that this statutory licensing approach reduces transaction costs for startups while preserving the economic incentives for artists, musicians, and writers. The working paper is currently open for a 30-day stakeholder consultation period to refine the framework before it informs India's broader AI governance agenda.