“Hollywood and Bollywood Unite to Demand Tougher Copyright Rules as AI Threatens Creative Rights in India”
A major copyright showdown is brewing in India as Hollywood and Bollywood production houses unite to push for tougher protections against artificial intelligence (AI) companies using their creative works for training algorithms.
Letters and submissions reviewed by Reuters reveal that film industry associations on both sides of the globe are lobbying an Indian government panel to impose strict restrictions on AI developers, fearing the unchecked use of copyrighted content could devastate the creative economy.
As AI continues to revolutionize industries worldwide, governments are scrambling to establish legal frameworks to manage its explosive growth.
While Japan has opted for broad exemptions allowing AI firms to use copyrighted material for model training, the European Union has introduced stringent rules that give creators the right to opt out of such use.
India, however, finds itself in a grey zone — its copyright laws, drafted long before the AI era, do not yet account for such complex scenarios.
Growing Anxiety in the Film Industry
Film studios in India and abroad are deeply alarmed by the possibility that AI tools might scrape copyrighted videos, images, and sound clips — from trailers to promotional material — and even ingest pirated content floating online.
To address these emerging challenges, the Indian government set up a special committee this year comprising lawyers, bureaucrats, and industry representatives to determine whether current copyright laws can handle disputes arising from AI use.
The panel has been tasked with recommending reforms to balance innovation with intellectual property protection.
Industry Voices Call for Licensing, Not Exemptions
The Motion Picture Association (MPA) — representing global entertainment giants such as Warner Bros., Paramount, and Netflix — and India’s own Producers Guild of India are pressing the government to avoid blanket exemptions for AI developers.
Instead, they advocate for a licensing-based model that would require AI companies to obtain formal permission to use creative works for model training.
In a letter dated August 2, MPA India Managing Director Uday Singh warned that any policy allowing unrestricted use of copyrighted material for AI training would “undermine the incentive to create new works and erode copyright protection in India.”
Echoing this concern, Producers Guild CEO Nitin Tej Ahuja wrote that licensing copyrighted content is vital to ensure the sustainability of creators’ livelihoods and the long-term health of the entertainment business.
Neither the MPA nor the Guild commented on the letters, which have not been made public. The panel’s chairperson, Himani Pande from the Ministry of Commerce, also did not respond to Reuters queries.
According to an official source, the panel is expected to submit its recommendations to senior government officials in the coming weeks.
India’s Expanding Media Economy
India’s entertainment landscape is one of the most dynamic in the world. A Deloitte–MPA report released in May estimated that the nation’s film, television, and online content industry generated $13.1 billion in 2023, growing at an annual rate of 18% since 2019.
The timing of this debate is especially sensitive, as a Bollywood celebrity couple recently approached the courts to challenge YouTube’s AI content policies, after manipulated videos featuring them went viral — highlighting the urgent need for digital safeguards.
Clash of Interests: AI Firms Push Back
The position of film studios contrasts sharply with that of the Business Software Alliance (BSA), which represents major AI developers, including OpenAI.
In its public submission to the panel in July, the BSA urged the Indian government to permit exceptions that would allow AI companies to lawfully use copyrighted material for research and model training.
However, the MPA remains firmly opposed. The association argues that “opt-out” systems, like those considered in the EU, would place an unfair burden on content owners, forcing them to constantly monitor and block unauthorized use of their work across countless AI platforms.
Such a move, the MPA warned, could discourage future investments and undermine the creation of quality local content.
Legal Battles on the Horizon
The global tension between creators and AI developers is already spilling into courtrooms. In September, Warner Bros. filed a lawsuit against AI image generator Midjourney in Los Angeles, accusing the company of illegally using copyrighted images and characters — including Batman, Superman, and Bugs Bunny — to train its AI model. Midjourney, on the other hand, maintains that its practices fall under “fair use”, a defense that continues to divide legal experts.
As India prepares to finalize its stance, the outcome of this debate will shape not just domestic copyright policy, but also the future relationship between AI innovation and artistic creativity in one of the world’s largest media markets.
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