One of India's largest news agencies, Asian News International, has sued OpenAI in a case that could set a precedent for how AI companies use copyrighted news content in the world's most populous nation.

Asian News International has filed a 287-page complaint against AI company OpenAI in the Delhi High Court on Monday, alleging that the artificial intelligence company unlawfully used its content to train its AI models and generated false information that was attributed to the news agency. It is the first case an Indian media entity has filed against OpenAI over copyright claims.

During Tuesday’s hearing, Justice Amit Bansal issued a summons to OpenAI after the company confirmed it had already ensured that ChatGPT wasn’t accessing ANI’s website. The bench said that it was not inclined to grant an injunction order on Tuesday, as the case required a detailed hearing for being a “complex issue.”

The next hearing is scheduled to be held in January.

We take great care in our products and design process to support news organizations," an OpenAI spokesperson told TechCrunch in a statement. "We are actively engaged in constructive partnerships and conversations with many news organizations around the world, including India, to explore opportunities, listen to feedback, and work collaboratively.

The lawsuit adds to mounting global pressure on AI companies over their use of copyrighted material. OpenAI currently faces over a dozen similar lawsuits in the US, two in Canada and one in Germany, according to statements made in court.

Amit Sibal, counsel for OpenAI, defended the company's practices, suggesting that copyright laws do not protect facts and that ChatGPT allows websites to opt out of data collection. The Microsoft-backed firm maintains it has no servers in India and lacks jurisdiction in the suit, he added.

ANI’s lawyer, Sidhant Kumar of law firm UNUM Law, countered that public availability doesn’t grant rights to exploit content. The agency expressed particular concern about ChatGPT attributing fabricated interviews to ANI, including a non-existent conversation with Rahul Gandhi, who leads the opposing party to the current party in power.

In its lawsuit, ANI has maintained that such "hallucinations" are indeed a serious threat to the news agency's reputation and that fake news sprouting up can lead to public disorder.
The court intends to designate an independent expert who will guide the court on the copyright implications of such AI models that make use of publicly available content. In future hearings, the judge will consider other technical features and how news content spreads across several platforms.