Zoho’s founder and Chief Scientist, Sridhar Vembu, has called on foreign artificial intelligence companies and Global Capability Centres (GCCs) operating in India to register their intellectual property within the country. He expressed concern that India’s top talent is creating immense value for global firms while the economic benefits largely flow abroad.
“Why are Indian citizens working in India, generating valuable intellectual property, and why should that IP be registered only in America and not in India? And why should Indian taxes not be paid on the profits from that IP? Our brains are being harvested for it. Why shouldn’t we get paid for it?” Vembu said in an interview with a common news platform.
He urged the government to make it mandatory for companies developing technology or AI models in India to register the resulting IP locally or license it to their parent entity overseas.
“If something is based in India, make sure that they comply with Indian law and make sure those laws include, for example, that the IP has to be registered in India or licensed to the parent. I think that should be an easy change,” he added.
Vembu stated that while India’s software professionals are driving global innovation, the country must not continue to operate under “asymmetrical terms” that allow ownership and profits to leave India. “We must ensure that we can trade on equal terms, not these asymmetrical terms we are forced to live with today,” Vembu said.
Zoho, one of India’s largest software-as-a-service companies, has been a strong advocate for local technology independence. The company continues to build its products in-house from rural India and has avoided foreign capital to preserve its autonomy.
Vembu’s comments come as India experiences rapid growth in GCCs, which serve as technology and R&D hubs for multinational companies. These GCCs employ more than 1.6 million professionals and contribute billions in exports. The sector is expected to contribute 3.5 per cent to India’s GDP by 2030 and employ over 21 lakh professionals across around 1,800 GCC units by 2025, up from 15 lakh in 2020.
However, most of the intellectual property created in these GCCs is registered abroad, limiting India’s potential tax gains and ownership rights. Vembu’s remarks also align with India’s broader push to develop its own AI models and reduce reliance on foreign AI ecosystems dominated by US-based technology firms.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream formerly known as CIO News LinkedIn Account | The Mainstream formerly known as CIO News Facebook | The Mainstream formerly known as CIO News Youtube | The Mainstream formerly known as CIO News Twitter |The Mainstream formerly known as CIO News Whatsapp Channel | The Mainstream formerly known as CIO News Instagram
About us:
The Mainstream formerly known as CIO News is a premier platform dedicated to delivering latest news, updates, and insights from the tech industry. With its strong foundation of intellectual property and thought leadership, the platform is well-positioned to stay ahead of the curve and lead conversations about how technology shapes our world. From its early days as CIO News to its rebranding as The Mainstream on November 28, 2024, it has been expanding its global reach, targeting key markets in the Middle East & Africa, ASEAN, the USA, and the UK. The Mainstream is a vision to put technology at the center of every conversation, inspiring professionals and organizations to embrace the future of tech.
