Openai faces a tough climb as it believes Indian courts cannot hear lawsuits about its operations in the U.S., where the Telegraph failed in a similar defense, and American tech companies have met the heat of government in compliance .
Viewed India as its second largest market with millions of users, Openai was caught in a fierce court battle triggered by domestic news agency ANI for alleged use of copyrighted content.
In recent weeks, the case has stood out in this case, opposing Openai in this case, with book publishers and media groups including billionaires Gautam Adani and Mukesh Ambani.
Openai faces new challenges in breakthrough cheap AI computing by Chinese startup DeepSeek, which insists that it uses public information to conform to the principle of fair use to build its AI model. The company faces similar copyright infringement lawsuits in the United States, Germany and Canada.
The details of OpenAI’s rebuttal of the law in other markets are not clear, but in New Delhi, it opposes ANI, said in court documents that only the terms of use in San Francisco require the resolution of the dispute, it goes beyond the jurisdiction of the Indian courts, it It does go beyond “actually” the country does not maintain any servers or data centers.
Poovayya & Co. “This is a pre-Internet era argument and will not drive in Indian courts today,” said Dharmendra Chatur, partner of the company.
Chatur added: “Google, X, Facebook all execute services through its foreign companies and is a party for litigation throughout India.”
Openai did not answer Reuters’ inquiry for this article. Its lawyers in India’s Amit Sibal declined to comment, citing on ongoing litigation.
Six other lawyers, as well as two court-appointed experts from the OpenAI lawsuit, filed by Arul George Scaria and Adarsh Ramanujan, said Indian judges could hear the matter.
“It’s obvious that OpenAI is providing interactive services to users in India,” Scaria wrote in a Jan. 25 court filing, which has not been made public, but has been deemed by Reuters.
Openai’s website shows it imposes an 18% Indian tax on paid products and recently said there is “a large amount of Chatgpt intake” in key markets.
In the Openai-Ani case, a complete victory in the jurisdiction would mean that Openai would not have to face copyright lawsuits in India. If this argument is lost, it will have to propose the ANI’s need to delete training data and pay a loss of US$230,000 (approximately Rs 2 crore).
The Delhi court will hear the case in February in jurisdictions and other arguments.
When asked about the lawsuit, Reuters, which holds a 26% interest in ANI, said it was not involved in its business practices or operations.
Foreign defendant
Indian courts, lawyers and court-appointed expert Scaria has the power to the 2022 ruling involving telegraph as a legal precedent.
An Indian author has sued Telegraph for her leaked copyrighted work appears on Telegraph Group, but the company refused to share details, saying it is governed by Dubai’s laws, which are governed by Dubai’s laws and in India Have servers outside.
The Telegram revealed details of the Delhi judge’s ruling: “The traditional concept of territoriality that no longer exists… (Choose Telegram) Don’t find its servers in India, which cannot be deprived of Indian courts that are not suitable for copyright disputes.”
The court imposed no fine.
However, Openai believes that India has a 2009 court precedent just because it has access to apps or web pages, which does not mean that judges can gain jurisdiction “with foreign defendants”.
Even though Openai’s arguments about jurisdiction failed to prevent litigation initially, Indian intellectual property lawyers said it could help the company later point out that the court orders need to be enforced abroad. Because of the sensitivity of the matter, the lawyer refused to name it.
Although Prime Minister Narendra Modi’s government is not a party to OpenAI lawsuit, it has a love-hate relationship with Big Tech.
India’s IT Minister mentioned American technology companies in 2021 and said that the position of “I can only be governed by American laws”…is obviously unacceptable. ”
In the most intense public face-to-face meeting of the same year, Twitter (now X) refused to comply with the order to remove certain content, and the government issued a press release titled “Twitter needs to comply with land laws.”
The company later applied but sued New Delhi. The case is underway.
Even before India’s legal challenge was reached, Openai Chief Sam Altman planned to make an Indian visit on February 5. Two other senior executives, James Hairston and Srinivas Narayanan, also planned to be in India, an email showed.
“India is really important…we’ve seen a lot of Chatgpt absorption,” Openai Indian executive Pragya Misra said last year.
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