AI Impact on Indian Film Industry: Lessons from the Hollywood negotiations

By Ranjana Adhikari, Srija Ray and Akshita Singh

Remember the time when we laughed our hearts out at the sheer simplicity and unusual wit of a character called ‘Mr. Bean’. Starring Rowan Atkinson, the British sitcom along with its animated spin-off, featured as one of the most relished shows of all times with just minimal dialogues and an epic comedy timing. Now imagine re-watching the iconic character ‘Bean’ only this time you see him as a technologically produced tip-to-toe resemblance of the character.

If asked in the 1990s, when the series was first featured, any individual would have denied the possibility of depriving the series of this legendary actor. But as someone rightfully said: “Times change and so do we.” The time we are living in currently, the audience is raptured by a de-aged Harrison Ford in ‘Indiana Jones and the Dial of Destiny’ and in awe of the pictures that depicted images of Shah Rukh Khan and Deepika Padukone’s characters, Vikram Rathore and Aishwarya, from the 2023 blockbuster, ‘Jawaan’, in a parallel universe.

Hollywood Negotiations

At the very core of these intriguing sights, lies artificial intelligence (AI), a term whose intermingling with the film industry is on the rise. While such prospects may have left the audience spellbound, the creative workforce of the film industry was, however, distressed by its extensive utilisation, leading to a series of strikes pulled off by numerous actors, writers, and directors last year in Hollywood.

Orchestrated by the Screen Actors Guild – American Federation of Television and Radio Artists (SAG-AFTRA) and the Writers Guild of America (WGA), the unions embodied the concerns of today’s film industry particularly against the unfettered use of AI by production houses and studios. While the former led to the release and ratification of the ‘2023 TV/Theatrical Contracts’ (SAG-AFTRA Agreement), the latter paved the way for the ‘WGA Theatrical & Television Basic Agreement’ (WGA Agreement).

The SAG-AFTRA negotiations voiced concerns around two pivotal factors – financial compensation and overall rise in the use of AI and digital replicas (DR) (technologically produced lifelike duplicates for films), among others. In a momentous stride towards protecting the rights of the actors and performers, the SAG-AFTRA Agreement inculcated necessary definitions and protections in regard to DRs by firstly, categorising it as Employment Based Digital Replicas (EBDR) (i.e., replicas created as part of their engagement on a motion picture) and Independently Created Digital Replicas (ICDR) (i.e., replicas created outside of any such engagement) and secondly, by mandating specific consent and compensation related obligations on the production houses for using such replicas. Some of these obligations include prior notification to the performer, procurement of a written consent of the performer for the creation of the DR detailing its intended uses and offering adequate compensation.

Rules for AI Use

Living at a time where technology is no longer limited by the bounds of a nation, drawing lessons from such events to address the issues stemming around AI becomes of utmost importance for our country. While the general practice here in India usually compels a performer to assign their exclusive right over their performance to the producer, there is no specific restriction on producers from exploiting these performances to create new content with the help of AI. Going forward, the performers, talent managers and producers in India would be better equipped at delineating the exact purposes and duration for which replicas may be deployed.

The WGA Agreement, besides acknowledging that AI could not be lent the sole status of a writer, also obligates the producers to disclose to the writers if they share an AI generated written material with the writer. The WGA negotiations may be relevant for India due to the challenges under the Copyright Act, 1957, on acknowledging ownership of AI-generated material. Relying solely on AI for a story or script raises copyright concerns, as Indian law requires human involvement for copyright protection. The negotiations may open avenues for writers in India to seek fair compensation, even when the work involves a combination of AI and human effort.

These guardrails in respect of consent and compensation come at a timely juncture as India too witnesses an upsurge both in the use cases and impact of AI (and deepfakes), necessitating a careful navigation of the considerable benefits of AI, alongside its potential detrimental effects. Finally, in the larger scheme of things, it would be prudent for the lawmakers to take a proactive approach by crafting more consistent, wholesome, and future proof laws with the broader objective of regulating AI at large instead of addressing only its specifics, at the very get go. However, acknowledging that such revisions may take time, incorporating similar measures in relation to specific consent and compensation akin to those being adopted by their counterparts can empower the members of the film industry, in the meantime.

Ranjana Adhikari is Partner, Srija Ray is Associate, and Akshita Singh is Associate, INDUSLAW. Views are personal and do not represent the stand of this publication.