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The Indian government has granted stakeholders additional time to weigh in on the emerging policy framework exploring generative AI and copyright law. The Department for Promotion of Industry and Internal Trade (DPIIT) announced that the deadline for public consultation on the “Generative AI & Copyright – Part I” working paper has been extended by 30 days, now closing on February 6, 2026. This move underscores the government’s intent to solicit comprehensive feedback from industry experts, legal scholars, and the public on the complex intersection of AI innovation and intellectual property rights.
Extended Consultation and Policy Context
The DPIIT released the first part of its working paper on December 9, 2025, aiming to evaluate how current copyright law applies to the training, development, and commercial use of generative AI models. A central proposal involves forming a committee to prescribe royalty rates based on a percentage of an AI company’s global revenue. This approach would create a structured pathway for AI companies to legally utilize publicly available copyrighted material, provided the royalty obligations are fulfilled.
The working paper emphasizes that royalty obligations would be triggered only upon the commercialisation of AI models. Once paid, AI developers would be free to incorporate copyrighted content without seeking prior consent, potentially reducing legal ambiguities while ensuring creators are compensated. DPIIT’s public notice accompanying the extension reinforced the department’s commitment to gathering thorough stakeholder insights. The official announcement highlighted the government’s goal of enabling “comprehensive analysis” before finalising the regulatory framework.
The consultation seeks feedback from all relevant stakeholders, including AI developers, content creators, legal experts, and industry associations. By allowing more time, the government intends to address concerns around copyright infringement, fair compensation, and the broader economic impact of AI-driven content creation. This is especially relevant as generative AI models increasingly shape media, art, and commercial content worldwide.
Key Takeaways from the Working Paper
The royalty mechanism is global revenue-linked and only applies to commercial use.
Copyrighted material can be legally incorporated after royalty payments, reducing the risk of infringement litigation.
The government is exploring a structured committee approach to set royalty rates transparently.
The extended consultation period reflects sensitivity to stakeholder concerns and the complexity of AI copyright law.
This extension signals a cautious and inclusive approach by Indian regulators toward generative AI governance. By explicitly inviting stakeholder input, the government is acknowledging the evolving nature of AI technologies and the need for adaptable legal frameworks.
What Undercode Say:
The DPIIT’s move to extend the feedback period highlights an important shift in how emerging technologies are regulated: consultation-driven policy design. AI development, particularly generative AI, thrives on rapid iteration and access to vast datasets. Traditional copyright law was never designed with machine learning models in mind, and without thoughtful adaptation, strict enforcement could stifle innovation. By linking royalty obligations to commercialisation rather than development, the proposed framework balances creator rights with innovation incentives, allowing experimental AI research to continue while ensuring content creators are compensated when AI-derived products generate revenue.
Furthermore, the proposed royalty model—based on a percentage of global revenue—could become a global precedent. If implemented effectively, it might influence international norms for AI content monetisation, particularly in jurisdictions exploring similar policy frameworks. However, operationalising such royalties presents challenges. Tracking AI models’ use of copyrighted material and attributing value proportionally requires robust reporting mechanisms and possibly independent audits.
The extended timeline also reflects the government’s awareness of the nuanced debates surrounding fair use, transformative content, and the ethics of AI training on copyrighted works. Stakeholders now have a window to present detailed technical, legal, and economic analyses, which could significantly shape the final framework. Public engagement at this stage is crucial: it is likely to influence not just domestic AI policy but also India’s position in global discussions on AI ethics, copyright reform, and digital content monetisation.
Finally, the DPIIT’s approach indicates a strategic balancing act. Regulators are attempting to foster innovation, protect intellectual property, and ensure that commercial gains are equitably shared. Such multi-stakeholder policy design is increasingly vital as AI systems grow more sophisticated and pervasive in industries from entertainment to software development, making India’s framework a potential model for other nations.
Fact Checker Results:
✅ The DPIIT officially announced the extension of the public consultation deadline to February 6, 2026.
✅ The royalty obligation applies only upon commercialisation of AI models, not development or training.
❌ No indication that royalty rates have been finalised; a committee is still being considered for this purpose.
Prediction:
📊 The extended consultation period will likely lead to more detailed stakeholder feedback, including proposals for fair royalty structures, technical reporting standards, and exceptions for educational or research uses. By mid-2026, India may introduce a clear, globally scrutinized policy framework that could set a benchmark for AI copyright governance worldwide, potentially influencing policies in Europe, the US, and other emerging markets.
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References:
Reported By: timesofindia.indiatimes.com
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