Section 21 - Intellectual Property Protections

(1) In recognition of the unique challenges and opportunities presented by the development and use of artificial intelligence systems, AI systems must be protected through a combination of existing intellectual property (IP) rights, such as copyright, patents, and design rights, as well as new and evolving IP concepts specifically tailored to address the spatial aspects of AI systems.

(2) For the purposes of this Section, “spatial aspects of AI systems” shall refer to the unique capabilities of AI technologies, including but not limited to:

(i) Dynamically adapting and generating novel outputs based on changing inputs, environments, and interactions;

(ii) Operating with varying levels of autonomy in decision-making, task execution, and self-learning;

(iii) Integrating and analysing data from multiple spatial, temporal, and contextual sources;

(iv) Enabling novel applications, services, and experiences leveraging spatial computing technologies.

(3) The objectives of providing a combination of existing intellectual property rights are to:

(i) Encourage innovation by securing enforceable rights for AI developers over their creations, inventions, and generated outputs;

(ii) Enhance interoperability by ensuring contractual arrangements are not unduly hindered by restrictive IP terms;

(iii) Promote fair competition by preventing unauthorized exploitation of AI-related IP assets developed in India;

(iv) Protect individual privacy and data rights by aligning IP protections with provisions under the Digital Personal Data Protection Act, 2023 and other data protection frameworks.

(4) The IAIC shall establish consultative mechanisms, in cooperation with relevant IP authorities and stakeholders, to develop a comprehensive framework for the identification, protection, and enforcement of intellectual property rights related to AI systems, including:

(i) Defining the scope and limitations of combined IP protections for AI systems and their spatial aspects;

(ii) Assessing the compatibility of such protections with existing IP laws and international treaties;

(iii) Addressing interoperability considerations to enable seamless integration and data exchange among AI systems;

(iv) Examining IP implications of AI systems’ ability to process, learn from, and generate content based on copyrighted works or patented inventions;

(v) Developing guidelines for determining authorship, inventorship, and ownership of AI-generated content and innovations;

(vi) Establishing protocols for rights management, licensing, and commercialisation of AI-related IP assets.

(5) The use of open-source software in AI systems shall be subject to the terms and conditions of the respective open-source licenses, with the IAIC providing guidance on compatibility between such licenses and the IP protections framework for AI systems.

(6) The IAIC shall periodically review and update the IP protections framework to accommodate advancements in AI technologies, evolving legal and regulatory landscapes, and emerging best practices in the field of AI and spatial computing.