AI Law in Nepal: Copyright, Policy & The Future (2025)

The Rise of Artificial Intelligence in Nepal

Nepal has officially entered the AI regulation era with the specific approval of the National AI Policy 2082 (2025). While tech companies are celebrating, legal experts are cautious.

1. Is AI Regulation New?

Yes. Before 2025, AI was a “Wild West.” Now, the government has established an AI Regulation Council and a National AI Center.

• The Goal: To classify AI risks and regulate its use in healthcare, education, and finance.
• The Reality: Implementation is in early stages.

2. Copyright: Who Owns AI Art?

The Copyright Act of 2059 (2002) is outdated. It recognizes only “Human Authorship.”

• Scenario: You use Midjourney to generate a logo for your Nepali brand.
• Legal Status: You likely do NOT own the copyright. Since a human didn’t “draw” it, Nepali law (and international precedence) treats it as public domain or software-generated data.
• Advice: Always have a human designer modify AI outputs significantly to claim ownership.

3. Deepfakes & The Electronic Transactions Act (ETA)

The most immediate legal danger of AI in Nepal is Deepfakes.

• The Offense: Using AI to swap faces in videos or clone voices (e.g., of politicians or celebrities).
• The Law: This falls under Section 47 of the Electronic Transactions Act (ETA).
• Penalty: Up to 5 Years in Jail. The police treat deepfakes as “Character Assassination” or fraud.

4. Data Privacy Risks

AI models scrape data. The Privacy Act 2075 says your personal data cannot be used without consent.

• If a Nepali bank uses an AI chatbot, that bot must not leak your financial details. If it does, the bank is liable for heavy compensation.

Conclusion

Nepal is playing catch-up. While the AI Policy 2082 paves the road, the specific AI Act is yet to be passed by Parliament. For now, operate with caution—tech moves faster than the law.

Disclaimer: Tech laws are evolving rapidly. Consult an IP lawyer for specific software advice.