One Nation One Licence One Payment

• A DPIIT-led committee released a working paper titled ‘One Nation, One License, One Payment’ proposing a new copyright framework for AI training.

• The paper proposes that AI Large Language Models (LLMs) like ChatGPT should have default access to freely available online content, with creators compensated through a central royalty-collecting body.
• India would become the first to adopt a statutory licensing model with retrospective royalty obligations if the proposal is implemented.

About One Nation One Licence One Payment

• Mandatory Blanket Licence: AI developers would be allowed to use all lawfully accessed copyright-protected material for training.
  • Removes the need for individual licensing negotiations, which often disadvantage small creators and smaller AI firms.
• Statutory Remuneration Right: Creators must be paid royalties for the use of their works.
  • Copyright holders cannot opt out of allowing their content to be used for AI training.
• Centralised Royalty Collection: Establish a non-profit Copyright Royalties Collective for AI Training (CRCAT) designated by the government.
  • Membership open to copyright societies and CMOs; one representative per class of work (text, music, images, etc.).
  • Royalty distribution available to members and non-members registered under the system.
• Royalty Determination and Payment: Rates to be fixed by a government-appointed committee of legal, technical, economic, and government experts.
  • AI developers to pay a percentage of their AI-generated revenues. It ensures predictable, uniform royalty payments rather than ad-hoc private contracts.
• Single-Window Access: Provides seamless licensing for all copyrighted works covered under the blanket licence.
  • It reduces transaction costs and ensures non-discriminatory access.

Need for AI Regulatory Framework in India

• Policy Gap: Under existing law, AI training datasets frequently include copyrighted works without permission, thereby violating Section 51 of the Copyright Act (1957).
  • The Delhi High Court is examining cases like ANI vs OpenAI, reflecting rising tensions over unlicensed use.
• Policy Challenge: The government must protect creators’ financial rights without stifling AI innovation.
  • Need for a system where creators earn fairly while AI firms gain reliable, lawful access to training datasets.

• Level Playing Field:Prevents dominance of large players in licensing; E.g. top AI firms raised $50+ billion globally in 2024, widening the bargaining gap with small Indian creators/startups.
• Digital Sovereignty:Establishes India as a rule-setter in AI governance; E.g., India is home to 3 million registered creators, giving global weight to a statutory model.
• Reduced Litigation:Reduces infringement under Section 51 of the Copyright Act, 1957, lowering disputes; E.g. DNPA publishers (48 major Indian news outlets) have filed cases against unlicensed AI training.

Challenges in Implementation

• AI firms may resist mandatory payments due to high development costs and low profitability.
• Content creators may oppose a flat fee, arguing their content is not equally valuable for AI training.
• Royalty distribution may become contentious due to differing traffic levels and variations in content type and impact.
• Diverse content sectors complicate pricing; E.g. India has over 20 copyright categories with varying economic values, making uniform rates difficult.
• Royalty and retroactive payments may impact scalability; for example, India’s AI startup ecosystem raised $1.5 billion in 2024, but margins remain thin for early-stage players.
• Rate challenges may clog courts (22,000+ IP-related pending cases in 2023).

Popular Courses

Way Forward

• Adaptive Regulation: Begin with flexible royalty tiers and revise based on market outcomes; E.g. similar to phased tariff adjustments used in India’s telecom sector.
• Tech–Creator Dialogue: Build continuous consultation channels between AI firms and creative sectors to reduce conflicts; E.g., similar to Australia’s bargaining code consultations.
• Support For Startups: Offer concessional royalty slabs or credits; E.g., modelled on MSME support frameworks like Startup India Seed Fund and Digital India Innovation Fund to ease early-stage costs.
• Strengthen CRCAT: Build automated audit engines, royalty calculators, and metadata verification systems for efficient distribution.

“Innovation without fairness leads to exploitation; fairness without innovation results in stagnation”.
India’s One Nation, One Licence, One Payment model could serve as a global blueprint for equitable AI progress, safeguarding creators, supporting startups, and fostering genuine digital sovereignty.

Reference: The Indian Express

PMF IAS Pathfinder for Mains – Question 457

Q. India’s proposed AI copyright regime under ‘One Nation, One License, One Payment’ seeks to harmonise creator rights with the needs of an innovation-driven startup ecosystem. Examine its key implementation challenges and assess how it can enhance India’s global competitiveness in the AI economy. (250 Words) (15 Marks)

Approach

• Introduction: Write a brief introduction about the ‘One Nation, One Licence, One Payment’ initiative and include the current status of the AI startup ecosystem.
• Body: Examine key implementation challenges for the proposed AI copyright regime under ‘One Nation, One License, One Payment’, assess its potential and way forward.
• Conclusion: Emphasis on an integrative and inclusive Digital India to strengthen the AI economy.