India has entered the global copyright and artificial intelligence (AI) debate with the release of a paper titled Working Paper on Generative AI and Copyright Part 1: One Nation One License One Payment, published by a committee formed by the Department for Promotion of Industry and Internal Trade (DPIIT).
The report proposes a hybrid licensing framework that gives developers automatic access to all lawfully accessed copyrighted content for training. In return, creators receive statutory royalties routed through a single national royalty mechanism, framed in the paper as a ‘One Nation One License One Payment’ approach to AI training rights.
For context, the proposal marks India’s first formal attempt to resolve a fast-growing legal conflict between AI innovation and copyright protection. And it arrives at a moment when lawsuits internationally are challenging developers who train AI systems on copyrighted material without permission, with India also facing similar questions through ANI’s lawsuit against OpenAI in the Delhi High Court (HC).
Notably, the recommendation signals a deliberate policy shift. The government wants to prevent licensing barriers from slowing AI development, while also ensuring that creators gain financial benefit from commercial AI systems trained on their work.
Moreover, by replacing fragmented licensing with a centralised payment and royalty distribution system, the framework attempts to standardise compensation across sectors. By choosing this path, India positions itself between the more permissive frameworks in Japan and Singapore, and the stricter compliance-focused rules emerging in the European Union (EU). Elsewhere, the Indian government is also building domestic AI capability as part of the IndiaAI Mission.
How the Hybrid Model Works?
At the centre of the proposal is a mandatory blanket licence. Once developers obtain lawful access to copyrighted material, they can use it for AI training without negotiating individual permissions or licensing contracts. In effect, creators cannot block the use of their works for model training. Instead, the system compensates them through statutory royalties.
To implement this structure, the committee proposes establishing a centralised entity called the Copyright Royalties Collective for AI Training (CRCAT). This entity would collect payments from developers and distribute royalties to creators. Importantly, developers would contribute based on pre-defined royalty formulas and revenue thresholds.
Furthermore, creators must register their works to receive payouts. Unregistered works can still be used for training, but creators would not be eligible to receive compensation. Notably, registration does not influence dataset access.
The lawful access requirement forms the compliance boundary. Developers must purchase, license, subscribe to, or otherwise legally access content before using it. Notably, the committee explicitly separates…
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