OpenAI is facing legal resistance in India as it argues that Indian courts lack jurisdiction over lawsuits concerning its US-based business. The AI firm&rsquo;s stance echoes unsuccessful arguments made by Telegram in similar cases and comes amid increasing regulatory scrutiny on foreign tech companies operating in the country. &nbsp;
The legal battle stems from a lawsuit filed by Indian news agency ANI, accusing OpenAI of copyright infringement. The case has gained traction in recent weeks, with major Indian media groups, including those linked to billionaires Gautam Adani and Mukesh Ambani, rallying against OpenAI. &nbsp;
OpenAI, which counts India as its second-largest market, has maintained that it builds AI models using publicly available information under fair use principles. The company faces similar copyright lawsuits in the United States, Germany, and Canada. &nbsp;
In its filings before the Delhi High Court, OpenAI contends that disputes should be resolved in San Francisco, as per its terms of service, and argues that it does not operate data centers or servers in India. However, legal experts believe this argument is unlikely to hold. &nbsp;
&ldquo;It&rsquo;s a pre-Internet era argument which will not fly in Indian courts today,&rdquo; said Dharmendra Chatur, a partner at Poovayya &amp; Co., which advises foreign tech firms. He noted that companies like Google, X (formerly Twitter), and Facebook have faced litigation in India despite being based overseas. &nbsp;
Six other lawyers, as well as two court-appointed experts, Arul George Scaria and Adarsh Ramanujan, have stated that Indian courts can hear the case. OpenAI did not respond to requests for comment, and its lawyer in India, Amit Sibal, declined to speak on the matter, citing ongoing proceedings. &nbsp;

An Indian news agency has accused OpenAI of copyright infringement

'Pre-Internet era argument will not fly today,' experts warn as AI giant argues jurisdiction

Can OpenAI Use US Roots as a Shield?

'Pre-Internet era argument will not fly today,' experts warn as AI giant argues jurisdiction

January 31, 2025 | 16:56 IST