India’s proposed mandatory licensing framework for artificial intelligence (AI) companies — which seeks to impose royalty payments on creators’ copyrighted content used for training AI models — is facing early and significant criticism from policy experts.
According to Rohit Kumar, Founding Partner at The Quantum Hub, the framework is “not sustainable” and “likely to fail strongly in implementation” despite the government’s attempt to balance innovation with creator rights.
The government’s working paper, currently open for public comments for 30 days, proposes a centralised body that will collect royalties from AI companies and distribute them to creators. The royalty rate would be set as a percentage of a model’s global revenue and would apply only once an AI system is commercialised.

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