The Delhi high court on Monday directed Microsoft-backed OpenAI, a San Francisco-based artificial intelligence (AI) research organization, to respond to a petition from the Indian Music Industry (IMI), which seeks to join a copyright infringement lawsuit filed by Asian News International (ANI).
The ANI lawsuit accuses OpenAI of using its content without permission to train its ChatGPT model. IMI, representing major Bollywood labels like T-Series, Saregama, and Sony Music, is concerned about the unauthorized use of their sound recordings in AI training, arguing it constitutes copyright infringement.
The music labels claim that OpenAI, the maker of ChatGPT, and other AI systems can extract lyrics, music compositions, and sound recordings from the internet, potentially violating their copyrights. This mirrors a lawsuit filed by Germany's GEMA in November, which also accused OpenAI of using song lyrics without a licence to train its AI model.
Previously, the Federation of Indian Publishers and the Digital News Publishers Association (DNPA), both of which represent major publishing houses and media outlets, filed pleas to intervene in the case and sought to be made parties to the lawsuit. HT Media Ltd, which publishes Mint, is a member of DNPA.
During Monday's hearing, justice Amit Bansal, overseeing the case, said that affected parties must file their individual suits, noting that the current lawsuit filed by ANI could not continue expanding.
The court will hear the entire case on 21 February.
This case represents the first copyright dispute involving OpenAI in India, with ANI accusing the company of using copyrighted content to train its large language models (LLMs), including ChatGPT. It also raises important legal questions around generative artificial intelligence (GenAI) and how India plans to regulate AI technologies in the context of copyright infringement.
To help navigate the case, the court has appointed two amici curiae: Arul George Scaria, Professor of Law at NLSIU Bengaluru, and advocate Adarsh Ramanujan.
This lawsuit follows a global wave of similar challenges against OpenAI, including by major media organizations like The New York Times, which is seeking billions in damages for the alleged illegal use of its archives to train AI models.
The outcome of this case could have significant implications for OpenAI’s operations in India, where the company has roughly 9.5% of its 300 million weekly active ChatGPT users, or around 28.5 million users. OpenAI also faces new competition from Chinese startup DeepSeek, which has made breakthroughs in cost-effective AI computing.
In its defence, OpenAI has denied any wrongdoing, arguing that copyright law protects the expression of ideas, not the ideas themselves. The company also contends that ANI has not provided specific examples of its copyrighted material being reproduced by ChatGPT and notes that it blocklisted ANI’s domain in October to prevent further use of its material in AI training.
Additionally, OpenAI argues that the lawsuit lacks jurisdictional grounds because its servers are located outside India, pointing out that none of the lawsuits it has faced globally—including those in the US, Canada, and Germany—have resulted in injunctions or rulings of copyright infringement.
India is emerging as a key player in the global AI landscape, with its AI sector expected to grow significantly in the coming years. According to a Nasscom-EY report, India’s AI market is projected to grow at a compound annual growth rate (CAGR) of 25-35%, reaching $22 billion by 2027, up from its current value of $7-10 billion.
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