AI, LLM training: DPIIT proposes govt-fixed royalty rates for content creators

The government has proposed that technology companies using content creators’ data to train their artificial intelligence (AI) and large language models (LLMs) pay royalties to these creators at a rate set by the government or at court.

- AASHISH ARYAN

The new framework, proposed by the Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, observes that payment for this blanket license should be collected by a unified industry body, which would then be responsible for distributing the proceeds among content creators.

DPIIT released these guidelines as part of a working paper late Monday night, giving stakeholders 30 days to submit their views. In its draft report, the DPIIT rejected a voluntary licensing mechanism, arguing that such a framework would impose a “significant compliance burden on those seeking licences, due to the complexity of negotiations and the associated uncertainty”.