ChatGPT maker OpenAI to Delhi HC: No legal obligation in India, as no office or permanent establishment here; servers too located outside India

ChatGPT-maker OpenAI has challenged Delhi High Court’s (HC) jurisdiction in a copyright lawsuit filed against the tech giant in November brought by news agency ANI. The Microsoft-backed company has argued that the court lacks jurisdiction as OpenAI had no presence in the country.
In its filing, OpenAI stated that complying with ANI’s request to remove its data from ChatGPT’s training would violate its legal obligations in the United States, news agency Reuters said in a report.
OpenAI “is therefore under a legal obligation, under the laws of the United States to preserve, and not delete, the said training data”, it said.
The company added that it has “no office or permanent establishment in India … the servers on which (ChatGPT) stores its training data are similarly situated outside of India”.
ANI has countered OpenAI’s arguments, asserting that the Delhi High Court has the jurisdiction to hear the case.

What is the ANI-OpenAI case all about

ANI alleged that OpenAI used its content without permission to train ChatGPT. OpenAI maintains that its use of publicly available data for training its AI models falls within the scope of fair use.
During a November hearing, OpenAI told the Delhi court it would not use ANI’s content anymore but the news agency argued its published works were stored in ChatGPT’s memory and should be deleted.
This lawsuit follows a wave of similar legal challenges faced by OpenAI and other AI companies, including the prominent case brought by The New York Times.
Furthermore, OpenAI has entered into content licensing agreements with several major news organizations, including Time magazine, the Financial Times, and Axel Springer. This has raised concerns for ANI, who argue that these partnerships create an unfair competitive advantage for OpenAI.
ANI has also accused OpenAI of reproducing verbatim or substantially similar extracts of their work within ChatGPT’s outputs.

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