India proposes charging OpenAI, Google for AI training; lobbying group protests (techcrunch.com)

India has proposed a groundbreaking framework that would require AI companies, including OpenAI and Google, to pay royalties when using copyrighted content for training their models. This "mandatory blanket license" would grant AI firms access to all copyrighted works in exchange for contributions to a centralized body that compensates creators, such as writers and artists. The initiative aims to clarify the legal landscape for AI training, addressing ongoing global concerns over copyright violations while supporting artists who want compensation for the use of their work. The significance of this move lies in its potential to reshape the operational dynamics of AI companies in one of their fastest-growing markets. Unlike legislative approaches in the U.S. and Europe, which are still debating issues of fair use, India's proposal offers a proactive solution to streamline access to content while ensuring creator rights are respected. However, this plan has faced criticism from industry bodies like Nasscom and the Business Software Alliance, which argue that a licensing regime could stifle innovation. They advocate for a broader text-and-data-mining exception that allows for lawful training on copyrighted material without mandatory payments. The Indian government is currently accepting public feedback on the proposal before finalizing its recommendations.