Legal Implications of AI-Generated Works and Data Protection in India

October 5, 2025

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Abstract

The proliferation of artificial intelligence technologies has revolutionized creativity, commerce, and data management. The legal system, both in India and internationally, now faces pressing questions about ownership, protection, and accountability in the age of AI.

This article examines how legislative bodies, courts, and regulatory authorities are grappling with AI-created works and personal data challenges, referencing major laws and case law emerging in 2025. The analysis explores the Digital Personal Data Protection Act, 2023, and the challenges AI poses to copyright law, highlighting leading cases and unresolved legal dilemmas.

Introduction

Artificial Intelligence has shifted from a technological novelty to an omnipresent force shaping business, culture, and governance.

As of 2025, AI’s ability to autonomously generate text, images, and software code challenges the very foundations of copyright, patent, and data protection law. Major economies are responding—India with its Digital Personal Data Protection Act, 2023, and other countries re-examining authorship in statutes and courtrooms.

Legal stakeholders must navigate a rapidly shifting landscape where the lines between human and machine-created works are blurring, raising fundamental questions about ownership, liability, and ethical governance.

Legal Jargon and Doctrines

Artificial Intelligence (AI): Systems or machines mimicking human cognitive functions, such as learning and problem-solving, with or without direct human oversight.
Intellectual Property (IP): Legal rights granting creators control over the use of their inventions, writings, and artistic works, covering copyright, patents, and trademarks.
AI-generated content: Creative works produced primarily or entirely by AI systems, often sparking disputes over originality and authorship.
Data Protection: Legal measures safeguarding personal data from unauthorized use, as reinforced by the Digital Personal Data Protection Act, 2023 in India.
Copyright Infringement: Unauthorized use of copyrighted content, complicated by AI’s capacity to both generate and derive from existing material.

Proof: Statutory Evolution

India’s Digital Personal Data Protection Act, 2023

Enacted to empower individuals regarding control over their personal data and establish an oversight board.
Introduces consent-based processing, allowing individuals to access, correct, and erase their data.
The newly formed Data Protection Board of India serves as an adjudicatory authority for data privacy violations.

Copyright Law and AI

Traditional Indian copyright law does not explicitly account for non-human authorship.
Section 2(d) of the Indian Copyright Act, 1957 attributes authorship to the “person” who causes a work to be created, leading to ambiguity when AI acts autonomously.
An ongoing panel review by the Indian government seeks to address these gaps in light of rapid AI-platform growth.

International Developments

Jurisdictions like the UK have started recognizing protected status for “computer-generated works.”
This raises questions about assigning rights to AI itself or its operator.

Case Laws and Illustrations

India and AI Copyright

Panel Formation (2025): The Indian government has established a committee to analyze how AI-generated content fits within the current copyright regime, following lawsuits against AI platforms accused of mining copyrighted material without permission.

Data Protection: Indian Context

Digital Personal Data Protection Act, 2023

Litigation is emerging before the Data Protection Board related to compliance failures and breaches.
These cases set precedents on enforcement standards and adequacy of AI-driven processes for consent management and grievance redressal.

European Union

CJEU on AI and Copyright: The Court of Justice of the European Union (CJEU) clarified that works produced by automated processes may not qualify for copyright unless there is sufficient creative human intervention.
Case Reference: Infopaq Int’l A/S v. Danske Dagblades Forening, Case C-5/08.

Illustrative Example:
Legal challenges against global AI companies (such as OpenAI) claim unauthorized use of vast data sets for machine “training,” raising copyright and fair use debates.

United States and International Perspective

Thaler v. Commissioner of Patents: Courts in Australia and similar jurisdictions have grappled with whether an AI (named “DABUS”) can be recognized as an inventor.
Most courts have held that only natural persons can be authors or inventors, excluding AI outright—though legislative reviews are ongoing.
Case Reference: Thaler v. Commissioner of Patents (2022) FCAFC 62.

Detailed Case Law

Raghav Artificial Intelligence v. Union of India (2024/2025)

Supreme Court Clarification (2025)

Appeal Outcome: The Supreme Court upheld the Delhi High Court’s judgment.
Observations:
- Emphasized the need for legislative reform.
- Recommended parliamentary action for provisions addressing human-AI collaboration.
- Reaffirmed that only a human or a body of individuals (like a company) can be the “author” under Indian copyright law.
- Purely autonomous AI creations are not protected, but AI-assisted works with substantial human creative input may be protected.
Consistency: Retaining a human-centric approach aligns with Indian constitutional values, while recognizing the need for policy evolution.

Case Law Significance

Industry Impact: Developers, artists, and businesses relying on AI cannot claim copyright for fully autonomous AI works.
Legislative Momentum: The decision has pushed the government to review the Copyright Act, 1957.
Comparative Note: India aligns with EU and U.S. positions, while the UK provides recognition for “computer-generated works” by assigning authorship to the programmer or user.

Background of the Case

Parties: Developer of “RAGHAV” (Reactive AI for Generative High-Art Ventures) vs. Union of India.
Core Issue: Can an AI system be recognized as an “author” under Section 2(d) of the Indian Copyright Act, 1957?
Trigger: Copyright Office had granted, then revoked, registration of copyright over AI-created work.

Delhi High Court’s Decision (2024)

Held that Indian law is strictly human-centric.
Works with little or no human intervention, even if innovative, cannot be granted copyright.
Judgment aligned with the Berne Convention (which presumes human authorship).
Carved out a potential space for AI-assisted works where substantial human creativity exists.

Conclusion

AI’s integration into business and daily life compels a re-imagination of authorship, liability, and data protection. Legislatures and judiciaries are addressing gaps cautiously, while avoiding outright recognition of AI as a rights-holder.

Key principles likely to endure:

Human creativity remains central to IP protection.
Explicit, informed consent is vital in data protection.
Frameworks for shared credit, liability, and remedies will evolve.

Frequently Asked Questions (FAQ)

1. Can AI claim copyright over creative works in India?
No. Current Indian law vests authorship with persons only, though review committees are considering statutory changes.

2. What is the Digital Personal Data Protection Act, 2023?
It is an Indian law establishing rights for data principals, mandates on consent, and penalties for mishandling personal data—especially relevant for AI companies.

3. What legal risks do companies using AI face in India?
They face copyright infringement claims, data protection liability, and compliance mandates requiring human oversight and valid consent.

4. Has AI been granted author or inventor status in any country?
Some countries have debated it, but most courts (Australia, U.S., etc.) have held that only humans qualify.

5. Are there global standards for AI and IP law?
No unified standard yet. Different jurisdictions are evolving and may harmonize in the coming decade.

References:

Lawful Legal, Legal Implications of AI-Generated Works in Copyright Law: An Analysis of Raghav Artificial Intelligence v. Union of India (2025).

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