The rapid proliferation of Artificial Intelligence (AI) in India is creating a surge in demand for Intellectual Property (IP) and copyright insurance. This increase is fueled by the growing legal ambiguities surrounding AI-generated content and the use of copyrighted material in AI training. As AI becomes more integrated into various sectors, businesses and creators are seeking ways to protect their IP rights and mitigate potential risks of infringement.

Driving Factors

Several factors contribute to the rising demand for IP and copyright insurance in the age of AI:

• Legal Uncertainty: Existing IP laws, like the Indian Patents Act and the Copyright Act of 1957, face challenges in addressing AI-generated content, inventorship, and ownership. The lack of clarity on these issues creates uncertainty and potential legal risks for businesses utilizing AI.
• Copyright Infringement Risks: AI models often require vast amounts of data for training, which may include copyrighted material. Using copyrighted works without permission can lead to infringement claims, making IP insurance a crucial safeguard.
• Increased Litigation: Lawsuits involving AI development and deployment are becoming more frequent. These lawsuits often involve allegations of copyright infringement, further highlighting the need for IP insurance.
• AI's Impact on Creative Content: With AI technologies increasingly contributing to creative content, there's a growing concern that traditional copyright protections may become obsolete or insufficient. Industries reliant on digital creativity, such as music, literature, and visual arts, are particularly vulnerable.

Addressing the Challenges

To address these challenges, the Indian government has taken steps to evaluate and modernize existing legal frameworks. In May 2025, the Ministry of Commerce & Industry formed an expert panel to assess the Copyright Act, 1957, and determine whether it adequately addresses the unique challenges presented by generative AI. The panel's mandate includes analyzing gaps in the Act related to AI training, authorship, and ownership, as well as recommending amendments to ensure clarity and legal certainty.

IP Insurance as a Solution

IP insurance offers protection for businesses and creators against claims of copyright or trademark infringement. It can cover legal fees, settlements, and adverse judgments incurred in the course of pursuing or defending against IP claims. As the risk of IP infringement claims becomes increasingly common with the rise of AI, IP insurance provides a valuable safety net for companies engaged in the use of copyrighted material.

The Future of IP Protection in the AI Era

The AI revolution presents both opportunities and challenges for IP protection in India. While AI can be leveraged to enhance IP protection strategies, it also creates new avenues for infringement. As AI technologies continue to evolve, it is crucial for legal frameworks and insurance solutions to adapt accordingly. This includes clarifying ownership of AI-generated works, addressing copyright infringement risks, and providing effective mechanisms for resolving IP disputes. By embracing innovation and proactively addressing the legal and ethical considerations surrounding AI, India can foster a thriving environment for creativity and technological advancement.