Indian Perspective of Intellectual Property for AI-Created Works

Abstract

The frame around every canvas does not restrict the artist but defines the space where creativity can flourish. Without it, the canvas can lose form and the paint may run, rendering the work incomplete. Intellectual property (IP) functions similarly-it protects rather than stifles innovation. However, as the AI era unfolds, this protective frame is weakening. Data used for training AI models doesn’t emerge from nowhere, and not all companies secure valid licenses before using copyrighted content. For instance, Getty Images’ suit against Stability AI, the creator of Stable Diffusion, alleged unauthorized scraping of millions of copyrighted photos. Similar concerns have been raised against Google. These companies often defend their actions as "transformative use," while shifting the burden onto artists to opt out rather than requiring explicit consent. This is especially alarming in a world where intangible assets now constitute 90% of the S&P 500’s total value, compared to just 17% in 1975. AI, contributing much to world economies, especially the £3.7 billion to the UK economy, complicates the matter further. Globally, there is no consensus on AI authorship or liability. In India, laws such as the Copyright Act and Patents and Designs Act provide no clear answers, as illustrated by the recent RAGHAV case. This research begins by situating IP as a structural safeguard for creativity in the digital era. The second section critically examines the legal uncertainty surrounding AI-generated works, focusing on authorship, licensing, and liability under Indian IP law. It draws on Parliamentary Standing Committee Report No. 161, which recommends a separate category for AI-based inventions-an encouraging step. The paper concludes by evaluating international models-particularly New Zealand’s risk-based, light-touch regulatory approach-and argues that India must adopt a similar framework to ensure transparency, provenance tracking, and fair contractual practices between AI developers and users. Only then can we preserve creativity while encouraging responsible technological growth.