AI content boom hits India's copyright wall

Indian entertainment companies are spending heavily on artificial intelligence for scriptwriting, visuals, and dubbing. The legal framework for owning that output has not kept pace, lawyers said.

Studios are using large language models to generate screenplays and marketing copy. Production houses are deploying AI for visual effects and voice dubbing. One major film studio recently announced a partnership with an AI startup to produce a feature-length animated movie using generative tools.

The problem sits inside India's Copyright Act, last substantially updated in 2012. The law ties protection to human creativity. It requires "originality" and "authorship" by a person. Works generated entirely by AI – or substantially assisted by it – may not qualify, legal experts said. That creates a chain of ownership risk.

If a studio pays an AI vendor to produce a script, who holds the copyright? The studio, the vendor, or neither? The same question applies to visuals, music, and even actor likenesses. Without clear title, studios cannot license the content to streaming platforms or syndication partners. Monetization becomes uncertain.

Top Indian film studios, television networks, and streaming services are all moving into AI tools. Reliance-backed Viacom18 and Disney's Star India have experimented with AI-generated content. Zee Entertainment has discussed AI-driven production workflows. The sector's exposure is broad.

Lawyers said the risk is not just legal but commercial. A studio that invests heavily in AI-generated content today may find its library unprotectable tomorrow. Competitors could replicate AI outputs without recourse. Investors are starting to ask about this exposure in earnings calls, two analysts said.

A counterargument exists. Some legal experts believe existing fair-use and licensing frameworks could cover AI-assisted content if the human input is "substantive." The boundary is untested in Indian courts. No major AI copyright case has reached a verdict.

The next catalyst for sector sentiment will be either a court ruling on an AI copyright case or the government's draft AI policy. The Ministry of Electronics and IT has indicated it is working on a regulatory framework. No timeline has been set. A parliamentary panel on AI is expected to take up the issue later this year.

For now, companies are proceeding. The potential reward – faster production cycles, lower costs – is too large to ignore. The legal foundation remains the 2012 Copyright Act, written long before generative AI existed. That gap is the uncertainty investors need to track.