GenAI firms may have to pay creators

In turn, the developers must pay royalties through a single, government-designated collecting body managed by rights holders.

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“The entity will function as a centralized body for licensing and royalty distribution under the compulsory blanket licensing model,” it said.

The proposal also suggested that companies may be charged fees retroactively.

The paper said the new model would lower compliance costs for startups, reduce litigation risk, and create a level playing field between large and small players, besides opening revenue stream for creators.

The draft, which will be open to feedback for 30 days, is the government's first formal policy outline in an area that has sparked intense global debate on the future of intellectual property. The plan, described as a “one nation, one licence, one payment” hybrid model, comes in the wake of soaring AI adoption, mushrooming AI startups and conflicts over use of copyrighted content.

Crucially, the policy paper rejects the tech industry's push for abroad “text-and-data-mining” (TDM) exception that would permit Al training without payment, a stance the committee argues would “undermine copyright” and leave smaller artists powerless to seek compensation. The paper also discards opt-out models.