Brand Makers
Dil Ka Jod Hai, Tootega Nahin
₹12,000 cr on mute: OpenAI’s Generative music push expose gaps in India’s Copyright Law
Unlicensed music usage in India is already estimated at ₹10,000 crore annually. Original soundtracks produced by ChatGPT or Sora will require transparent licensing frameworks, according to an expert.
OpenAI’s reported move into generative music, with models capable of producing original compositions from text or audio prompts, has reignited debate across India’s music and entertainment industry. While creators and platforms see immense potential in scaling content production, experts caution that unresolved copyright, authorship, and licensing questions could reshape the country’s ₹12,000 crore music ecosystem.
“AI can amplify creativity, not replace it”
Rajeev Raja, Founder and Soundsmith of BrandMusiq, says the innovation in AI-generated music is opening exciting possibilities. “Over the next few years, we’ll see AI play a growing role in accelerating workflows, enabling quick content adaptations, and supporting scalable sound production. However, the real soul of music still lies in human creativity, in emotion, cultural context, and storytelling,” he says. “The risk lies in music becoming formulaic if we rely solely on algorithms. The future will belong to those who use AI to amplify their imagination, not replace it.”
The creative advantage
Akshay Mathur, founder and CEO of Unpromptd says, “Imagine a creative brief coming in at 9 a.m. and by 9:10, you already have five versions of a brand track that capture different moods. That’s the kind of speed AI brings in. It lets teams experiment with sound far earlier in the process, before even stepping into a studio. But while AI can spark ideas and give structure, the soul of a brand’s sound will still need a human ear. Music that sticks in your head usually comes from instinct, not algorithms.”
When asked whether such tools could democratize music production, Mathur adds, “Completely. What used to need a studio, a composer, and a decent budget can now start on a laptop. Smaller agencies, indie creators, even student filmmakers can now create high-quality original scores. It’s like turning every creative into a mini music producer. That’s the real beauty of it. Ideas no longer get limited by access or cost.”
On integrating AI tools into advertising workflows, he says, “Imagine typing out a brand script in ChatGPT and instantly hearing what that emotion sounds like. Teams could build rough cuts with music, VO, and copy, all in one go, before sending it for professional polish. It will make the pre-production phase much faster and give clients a clearer sense of the end vision right from the start.”
Reshaping licensing and revenue models
Gaurav Dagaonkar, Co-founder and CEO at Hoopr, points out that India’s music industry, along with other media and entertainment revenues, has an annual turnover of around ₹12,000 crore, about 6 percent of the overall sector. In this context, OpenAI’s foray could “transform traditional licensing models, redefining how music is created, used, and monetized.”
He adds that rights-holders may soon need to introduce AI-training clauses, ensure dataset transparency, and adopt micro-licensing and API-driven access. “Unlicensed music usage in India is already estimated at ₹10,000 crore annually,” he notes.
Dagaonkar further explains that original soundtracks produced by ChatGPT or Sora will require transparent licensing frameworks. “Users must know whether AI-produced music is completely original or derived from copyrighted works. For brands, agencies, and creators, this distinction is crucial.”
He cautions that AI-generated compositions may not qualify for copyright unless significant human involvement exists. “The Copyright Act of 1957 grants rights only to works authored by natural persons, meaning fully computer-generated tracks currently fall outside legal protection.” With the global AI music market projected to reach USD 2.8 billion by 2030, he says, “we urgently need to define the line between human creativity and algorithmic output.”
The legal tightrope: ownership, data, and liability
Sonam Chandwani, Managing Partner at KS Legal & Associates explains that AI-generated music poses complex challenges to existing copyright frameworks premised on human authorship. “In most jurisdictions, including India and the U.S., copyright subsists only where there is human creativity and authorship; hence, purely machine-generated compositions fall outside protection unless substantial human input is involved,” she says.
“Ownership would typically rest with the user only if their contribution demonstrates creative control; otherwise, neither the user nor the AI developer can claim copyright,” Sonam adds.
She also notes that using copyrighted audio in training datasets could expose model developers like OpenAI to infringement risks unless deemed fair use. “Reproducing or simulating a known artist’s sound or style without consent could implicate both moral and personality rights, especially if it evokes the artist’s identity or reputation.”
Even though OpenAI operates from the U.S., she points out that “Indian rights holders could still pursue infringement claims if the music is accessible or monetized in India, though cross-border enforcement remains challenging.”
Defining authorship and protecting against risk
Prashant Mali, advocate highlights that “if no human authorship exists, current law offers no copyright in India. Pure AI-generated works may fall into the public domain unless human input crosses the originality threshold.”
On ownership, Mali says, “In the absence of legislative clarity, it depends on contracts or platform policies. Usually, the user who provides creative prompts holds usage rights, but OpenAI retains certain licensed interests under its Terms of Use.”
He warns that training AI models on copyrighted compositions without proper licensing could raise infringement issues, especially if identifiable elements are reproduced. “Fair use defenses hinge on whether the use is transformative, non-commercial, and does not harm the market value of the original.”
Echoing Mali’s view, Rajiv Dingra, Founder & CEO - ReBid adds that until the law evolves, “ownership and copyright risk management will largely depend on contracts, indemnities, and ethical AI practices.”
Industry readiness for a hybrid future
According to Shahir Muneer, Founder and CEO of Divo, “OpenAI’s entry will accelerate the conversation around AI-created IP and rights management. The traditional licensing ecosystem is built on clearly defined ownership between artists, composers, lyricists, and rights holders. AI disrupts that by introducing works without a human author.”
He believes the impact will not be about replacement but “coexistence, using AI as a creative collaborator while maintaining human-authored IP as the cornerstone.”
“There are already platforms like Suno generating songs and soundtracks from prompts,” he says. “OpenAI’s tools currently grant usage rights but disclaim authorship. We now need a commercial licensing framework to avoid disputes.”
SPOTLIGHT
"The raucous, almost deafening, cuss words from the heartland that Piyush Pandey used with gay abandon turned things upside down in the old world order."
Read MoreThe new face of the browser: Who’s building AI-first browsers, what they do and how they could upend advertising
From OpenAI’s ChatGPT-powered Atlas to Microsoft’s Copilot-enabled Edge, a new generation of AI-first browsers is transforming how people search, surf and interact online — and reshaping the future of digital advertising.