Core Viewpoint - India is proposing a mandatory copyright usage fee system for AI companies, requiring them to pay for the use of copyrighted content in model training, which may reshape the operations of companies like OpenAI and Google in one of the world's most important and fastest-growing markets [1][3]. Group 1: Proposed Framework - The Indian Department for Promotion of Industry and Internal Trade (DPIIT) has released a proposed framework allowing AI companies to use all copyrighted works for model training, provided they pay a copyright usage fee to a new collective management organization composed of rights holders [3][4]. - This "mandatory blanket license" mechanism aims to reduce compliance costs for AI companies while ensuring fair compensation for creators such as writers, musicians, and artists when their works are used for commercial model training [3][4]. Group 2: Legal Context and Global Concerns - The proposal comes amid growing global concerns regarding AI companies' use of copyrighted materials for training, with lawsuits emerging in the US and Europe from authors, news agencies, and artists [3][5]. - Unlike the ongoing policy debates in the US and EU regarding transparency obligations and the boundaries of fair use, India's proposal is one of the most interventionist measures to date, automatically granting AI companies the right to use copyrighted content under the condition of payment [3][4]. Group 3: Industry Reactions - Industry associations representing companies like Google and Microsoft, such as Nasscom, have formally opposed the proposed model, advocating for a broader "Text and Data Mining" (TDM) exception that would allow AI developers to use copyrighted content under legal acquisition [5][6]. - The Business Software Alliance (BSA), representing global tech companies, has also urged the Indian government to avoid a purely licensing approach, suggesting that relying solely on direct or statutory licensing may not yield the best outcomes [5][6]. Group 4: Government's Position and Next Steps - The Indian government committee has rejected the broad TDM exception and opt-out model, arguing that such mechanisms could weaken copyright protection or be difficult to enforce [6]. - Instead, the committee proposed a "hybrid model" where AI companies can automatically access all legally available copyrighted works but must pay royalties to a central collective management organization, which will distribute the earnings to creators [6]. - The Indian government has initiated a public consultation process, allowing companies and stakeholders 30 days to submit feedback before final recommendations are made [6].