Openai faces a difficult climb as it argues that Indian courts cannot hear cases about their US-based business in the country, where telegram has failed with similar defense and American technology firms Has faced government heat on compliance.
Openai, which is counted as India as its second largest market with millions of users, is closed in a intensive court battle triggered by the domestic news agency ANI for the alleged use of copyright materials.
The case gained prominence in recent weeks as book publishers and media groups, including billionaires Gautam Adani and Mukesh Ambani, banding together to oppose Openai in the case.
Openai, which is facing new challenges from the Chinese Startup Deepsek’s success cheap AI computing, has maintained that it produces its AI model using public information according to proper use principles. The company faces cases of similar copyright violations in the US, Germany and Canada.
The details of the legal denial by Openai in other markets are not known, but in New Delhi it is opposing ANI, saying in court saying that call your use conditions for dispute resolution in San Francisco, it is the jurisdiction of Indian courts Do not maintain any server or data centers in the country and it “does”.
“This is a argument of a pre-internet era that will not fly in Indian courts today,” said Dharmendra Chatur, a partner of Puvay & Company, who advises foreign technical companies.
Chata said, “Google, X, Facebook all serve through their foreign companies and party for litigation across India,” Chatur said, stating that the courts usually assess whether anyone does The website is accessible and provides services to customers in India in deciding the point.
Openai did not respond to the Reuters Quarries for this article. Its lawyer in India, Amit Sibal refused to comment, citing the ongoing proceedings.
Six other lawyers, and presentations of experts appointed by two courts in the OpenEE case, Arul George Scaria and Adarsh ​​Ramanujan said the Indian judges could hear the matter.
Scaria wrote in its court submission on 25 January, “It is clear that OpenaiI is providing its interactive services to users in India.”
Openai’s website shows that it charges 18% Indian tax on the offered offerings and said that there was a “big uplift of chat” in the recent important market.
In the case of Openai-Ari, a clear victory over the argument of jurisdiction would mean that Openai would not need to face copyright trial in India. If it loses that argument, it will have to compete with ANI to remove training data and pay $ 230,000 (about 2 crore rupees) in loss.
The Delhi court is set to listen to the case on the next jurisdiction and other arguments in February.
Asked about the trial, Reuters, who have 26 percent interest in ANI, have said that it is not involved in its business practices or operations.
Foreign defendant
Batting for the power of Indian courts, lawyers and court -appointed expert Scaria cited a 2022 decision in which Telegram was included as a legal example.
An Indian writer had sued Telegram for its leaked copyright tasks appearing on telegram groups, but the company refused to share the details saying that it is ruled by laws in Dubai, where it is based, And there were servers outside India.
Telegram revealed the details after the decision of a Delhi judge: “The traditional concepts of regionalism are no longer exist … (Choosing Telegram) To detect their servers in India and not to deal with copyright disputes to Indian courts not to deal with copyright disputes Can not divide. “
The court did not impose a fine.
Openai, however, argues that there is an example of a 2009 court in India that only says that an app or webpage is accessible, it does not mean that judges can “get jurisd by a foreign defendant.”
Even if Openai’s argument on jurisdiction fails to stop the lawsuit initially, an Indian intellectual property advocate said that it can later help the company to create the fact that the court order to make the court order Enforcement will be required abroad. The lawyer refused to be nominated due to the sensitivity of the case.
Although Prime Minister Narendra Modi’s government is not a party for the open trial, it has a love-lower relationship with Big Tech.
In 2021, the IT minister of India referred to the US tech firms and said that his position “I would only be ruled by the laws of America ‘… is not clearly acceptable.”
In the same year in the most bitter public faceoffs, Twitter, now X, refused to follow orders to remove some materials and the government issued a press release, titled “to follow Twitter to follow the land laws. “.
The company later complied but filed a case against New Delhi. The matter continues.
Even before the Indian legal challenges campaigned, OpenaiI chief Sam Altman planned to visit India for 5 February. Two other senior officers, James Hourstone and Srinivas Narayanan are also planned to live in India in an email.
Pragya Mishra, executive of Openi India, said last year, “India is really important … we have seen a large scale.”
© Thomson Reuters 2025
