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OpenAI is contesting a copyright lawsuit in India, arguing that local courts lack jurisdiction over its U.S.-based operations. The case, filed by Indian news agency ANI, accuses OpenAI of using copyrighted content without permission. Major Indian media groups, including those linked to billionaires Gautam Adani and Mukesh Ambani, have also opposed OpenAI.
The AI company, which considers India its second-largest market, asserts that its AI models rely on publicly available data under fair use principles. However, Indian courts have previously ruled against similar jurisdictional defenses, as seen in a 2022 case involving Telegram. OpenAI maintains it has no servers or data centers in India and that disputes should be settled in San Francisco, as stated in its terms of use.
Legal experts believe Indian courts will likely reject OpenAI’s jurisdictional argument, citing its services’ accessibility in the country. Court-appointed experts Arul George Scaria and Adarsh Ramanujan argue that OpenAI engages with Indian users, charging an 18% tax on paid services. If OpenAI loses the jurisdiction claim, it may face ANI’s demands for data deletion and $230,000 in damages.
This lawsuit comes as OpenAI competes with emerging rivals like China's DeepSeek. The Indian government has historically challenged foreign tech firms on compliance, with Twitter facing similar disputes. Despite mounting legal challenges, OpenAI CEO Sam Altman and senior executives are scheduled to visit India on February 5, potentially addressing concerns amid the ongoing court battle.
