OpenAI's latest move into generative music is creating a stir across India's vibrant music and entertainment industry. Experts warn that the advanced artificial intelligence (AI) tools, capable of producing original compositions from simple text or audio prompts, are exposing critical gaps in India's existing copyright laws. This technological leap challenges the country's ₹12,000 crore music ecosystem, raising urgent questions about authorship, ownership, and fair compensation in the digital age. ##^{[1][2][3][4][5]}# AI's Creative Leap Meets Old Laws OpenAI, known for its AI models like ChatGPT and Sora, is reportedly developing a new music generation tool. This tool aims to rival existing AI music platforms such as Suno and Udio. The company is reportedly working with students from New York's Juilliard School to annotate musical scores, helping to train the AI to create realistic and emotionally nuanced music. Ope^{[2][6][7][3][4]}nAI has a history in AI music, having previously released MuseNet in 2019 and Jukebox in 2020. Ho^[6][7][3]wever, India's Copyright Act of 1957 does not directly address AI-generated content. Leg^{[8][9][10][11][12]}al experts emphasize that copyright protection in India, as in many other countries, is based on human creativity and authorship. Purely machine-generated compositions often fall outside this protection unless a human provides substantial creative input. Son^[1][5]am Chandwani, Managing Partner at KS Legal & Associates, explained that "copyright subsists only where there is human creativity and authorship." She^[1][5] added that "purely machine-generated compositions fall outside protection unless substantial human input is involved." Ad^[1][5]vocate Prashant Mali echoed this view, stating that "if no human authorship exists, current law offers no copyright in India." He ^[1][5]warned that "pure AI-generated works may fall into the public domain unless human input crosses the originality threshold." Thi^[1][5]s means that music created solely by AI might not receive legal protection, leaving its ownership unclear. ##^[1][5]# The ₹12,000 Crore Ecosystem at Risk The Indian music industry, encompassing various aspects of media and entertainment revenues, has an estimated annual turnover of around ₹12,000 crore. This si^[1][5]gnificant market is now facing potential disruption from generative AI. While the overall Indian music industry was valued at about ₹5,300 crore in 2024 and is projected to reach ₹7,800 crore by 2026, the music streaming market alone generated approximately ₹12,475 crore in 2024. Music royalty^[13][14] collections also saw a boost, crossing ₹700 crore in 2024, driven by streaming platforms. The rapid adva^[15]ncements in AI music technology could reshape how music is created, used, and monetized. Gaurav Dagaonkar, Co-founder and CEO at Hoopr, pointed out that OpenAI's entry could "transform traditional licensing models." While AI offers^[5] immense potential for scaling content production and speeding up workflows, it also presents risks. Akshay Mathur, founder and CEO of Unpromptd, highlighted AI's speed, saying, "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." However, Rajeev^[1] Raja, Founder and Soundsmith of BrandMusiq, cautioned that "the risk lies in music becoming formulaic if we rely solely on algorithms." He emphasized t^[5]hat "the real soul of music still lies in human creativity." ### Legal Batt^[1]les and Future Pathways The legal challenges are already surfacing. The Indian Music Industry (IMI), which represents major labels like T-Series and Saregama, has intervened in a lawsuit against OpenAI. These music com^[8][16]panies allege that OpenAI's AI models infringe on copyrights by using their music and lyrics to train AI without proper authorization. News agency Asi^[8][16][17]an News International (ANI) also sued OpenAI in November 2024, accusing the company of using its copyrighted content to train AI models without permission. A key issue in^[8][16][17] these disputes is whether using copyrighted material for AI training falls under "fair use" or "fair dealing." OpenAI often ar^[8][17]gues that its models synthesize data to create new content, rather than simply reproducing copyrighted material. However, Kartik^[17][18] Dey, an advocate and patent attorney, noted that "Indian copyright allows fair use under certain conditions only, such as criticism, review, or research." He suggested th^[17]at OpenAI's defense might be problematic given the limitations of Indian copyright law and the potential for AI-generated works to compete with original human creations. Legal experts ^[17]also warn that training AI models on copyrighted compositions without proper licensing could lead to infringement claims. Furthermore, if^[1][5] AI generates music that reproduces or simulates a known artist's style without consent, it could impact their moral and personality rights. Even though Ope^[1][5]nAI operates from the U.S., Indian rights holders could still pursue infringement claims if AI-generated music is accessible or monetized in India, though cross-border enforcement remains challenging. The current le^[1][5]gal framework's focus on human authorship creates a significant void for AI-generated works. Without clear g^[8][9][10]uidelines, the ownership of AI-created music could rest on complex factors, including contracts, platform policies, and the degree of human creative control in the prompting process. Until the law e^[1][5]volves, experts like Rajiv Dingra, Founder & CEO - ReBid, believe that "ownership and copyright risk management will largely depend on contracts, indemnities, and ethical AI practices." The ongoing le^[5]gal battles highlight the urgent need for legislative clarity to balance fostering AI innovation with protecting the rights of human creators in India's dynamic music industry.