NEW DELHI, Jan 31 (Reuters) – OpenAI is contesting an Indian court’s jurisdiction over a copyright lawsuit filed by news agency ANI, arguing that legal disputes should be handled in San Francisco. However, legal experts and court-appointed specialists assert that Indian courts have authority over such cases, citing precedents where foreign tech firms like Google, X, and Facebook have faced litigation in India.
OpenAI, which has millions of users in India, is under scrutiny as media groups, including those linked to billionaires Gautam Adani and Mukesh Ambani, oppose its stance. The company maintains that its AI models rely on publicly available information under fair use principles. It faces similar copyright infringement cases in the U.S., Germany, and Canada.
In its legal rebuttal, OpenAI emphasizes that it has no servers or data centers in India, attempting to distance itself from the country’s jurisdiction. However, legal experts argue that the accessibility of OpenAI’s services in India, along with its 18% tax on paid offerings, strengthens the case for local courts to hear the dispute.
If OpenAI successfully argues against jurisdiction, it could avoid facing the copyright lawsuit in India. Otherwise, it will have to respond to ANI’s claims, which include demands for training data deletion and $230,000 in damages. The Delhi court will review the case in February.
Legal experts cite a 2022 Telegram case, where the court ruled that foreign companies cannot evade Indian jurisdiction simply by hosting servers outside the country. While OpenAI references a 2009 precedent supporting its argument, legal professionals believe enforcement challenges could still arise.
The case unfolds as the Indian government continues to push back against foreign tech companies resisting local laws. Prime Minister Narendra Modi’s administration has previously clashed with U.S. tech giants over compliance issues, reinforcing the country’s stance on digital governance.
Despite mounting legal challenges, OpenAI CEO Sam Altman is set to visit India on Feb. 5, accompanied by senior executives James Hairston and Srinivas Narayanan, highlighting the nation’s growing importance for the company.
Source: Swifteradio.com
