India: Department for Promotion of Industry and Internal Trade closes consultation on working paper on generative AI and copyright, focusing on remuneration rights

On 7 January 2026, the Department for Promotion of Industry and Internal Trade closes the consultation on Part 1 of the working paper on generative Artificial Intelligence (AI) and copyright. The paper applies to AI system developers using copyrighted materials for training generative AI models in India. The paper recommended a hybrid model based on a mandatory blanket licence allowing AI developers to use lawfully accessed copyrighted works for training, combined with a statutory remuneration right for rightsholders. It also stated that royalties would be collected by a government-designated non-profit entity and distributed through copyright societies, with rates set by a government-appointed committee and subject to judicial review. The paper also states that AI developers must obtain licences to use copyrighted content for training. A new entity called Copyright Royalties Collective for AI Training (CRCAT) would be established as a non-profit organisation under the Copyright Act, 1957. CRCAT would collect revenue-based royalties from AI developers, and the royalties would be distributed to copyright holders through member organisations. The framework aims to balance AI innovation with fair compensation for creators.