Can India’s IP Law Handle the AI Explosion?

Artificial Intelligence (AI) is no longer a futuristic concept—it’s reshaping industries, automating complex decisions, and even creating art, music, and code. While the AI explosion unlocks incredible innovation potential, it simultaneously poses critical challenges to India’s intellectual property (IP) framework. From data ownership and algorithmic creativity to patentability and liability, the existing IP regime faces a daunting test. The big question is: Can India’s IP law keep pace with the breakneck evolution of AI technology?

AI systems today are capable of generating original outputs, such as paintings, software, and business strategies, often without direct human intervention. This raises fundamental legal questions:

• Who owns the copyright to AI-generated content?

• Can an AI be considered an inventor under Indian patent law?

• How should data sets, which fuel AI algorithms, be protected or regulated?

These issues illustrate the growing friction between fostering innovation and guarding against infringement. While innovators demand stronger protection for AI-generated assets, traditional legal frameworks remain anchored in human authorship, originality, and intent.

India’s current IP laws—largely influenced by international conventions like TRIPS and the Berne Convention—lack specific provisions for AI. Let’s explore how this plays out across various domains:

India’s Copyright Act of 1957 attributes ownership to human authors. However, when an AI generates a book summary, a song, or a piece of code, the law does not state who owns the copyright—the user, the AI developer, or no one. The absence of recognition for non-human creators creates ambiguity in ownership and enforcement.

India’s Patent Act requires a patent to have novelty, inventive step, and industrial applicability. More importantly, it mandates that only a natural person can be named as an inventor. So even if an AI develops a unique pharmaceutical formula or an engineering solution, current regulations do not allow for its protection unless a human claims inventorship. This creates ethical and legal grey zones, especially when human contribution is minimal.

Data is the fuel of AI. Most AI models are trained on vast datasets—often sourced from users, companies, or public domains. India currently lacks a comprehensive data protection law. Until the Digital Personal Data Protection Act, 2023 is fully implemented and integrated into broader legal structures, ownership and consent around AI training data remain murky.

As India grapples with these challenges, law firms in Mumbai are emerging as key players in advising tech companies, startups, and developers on navigating the legal landscape around AI and IP. Mumbai, being the financial and innovation hub of India, houses some of the most experienced IP firms in Mumbai, who are actively participating in consultations, policy recommendations, and litigation strategies involving AI and intellectual property.

Legal professionals are currently addressing:

• Licensing models for AI-generated content

• Drafting AI-focused IP clauses in contracts

• IP due diligence in AI startup investments

• Representation in IP infringement cases involving machine learning tools.

Other jurisdictions are taking proactive steps. The UK has begun public consultations on AI and copyright. The EU’s proposed AI Act includes mechanisms to ensure transparency and accountability in AI development. Meanwhile, the U.S. Patent and Trademark Office is examining the eligibility of AI-generated inventions.

India cannot afford to lag. As an emerging tech powerhouse, it must revise its IP laws to remain globally competitive. Reform priorities include:

• Recognizing AI-assisted or AI-generated works and attributing ownership

• Allowing limited patent rights for inventions with minimal human intervention

• Clarifying liability for AI-driven infringement

• Protecting training data while balancing fair use and innovation

The Indian judiciary has started acknowledging the role of AI in shaping future legal norms. Courts have occasionally admitted AI-generated evidence or relied on AI-driven tools for case management. However, there’s little precedent concerning AI and IP rights. Legislative bodies and policymakers must lead the charge in crafting nuanced regulations that promote responsible innovation while guarding creators’ rights.

The challenge lies in striking a balance: being flexible enough to accommodate fast-paced technological growth, yet robust enough to prevent misuse and infringement.

In this uncertain yet transformative landscape, Royzz&Co. stands out as is a strategic legal partner. As one of the most forward-thinking IP firms in Mumbai, Royzz&Co has been actively involved in addressing AI-related legal complexities. The firm offers end-to-end solutions—from helping startups draft AI IP policies to representing corporations in infringement litigation involving AI-generated assets.

With a team that combines deep technical understanding with sharp legal acumen, Royzz&Co is uniquely positioned to guide clients through the evolving intersection of AI and intellectual property. Their proactive approach to AI compliance, data governance, and IP protection places them among the top law firms in Mumbai ,catering to the future of innovation.