OpenAI Faces Legal Battles in India Over Copyright Concerns From Top Music companies

OpenAI, the Microsoft-backed artificial intelligence company known for its popular chatbot ChatGPT, is facing mounting legal challenges in India, its second-largest user base. Top music labels, including T-Series, Saregama, and Sony, are reportedly seeking to join a copyright lawsuit against OpenAI, alleging unauthorized use of their sound recordings to train AI models, according to a report by Reuters.

The music giants are attempting to participate in an ongoing lawsuit filed by news agency ANI against OpenAI for copyright infringement. On Thursday, T-Series, Saregama India, and the Indian Music Industry (IMI) organization urged a Delhi court to consider their concerns about the "unauthorized use of sound recordings" for AI training. In their submission, they emphasized that the issue is "crucial for the entire music industry in India, and even worldwide."

Background of the Lawsuit

ANI initiated the lawsuit in 2024, alleging that OpenAI was exploiting its news content to train AI models without proper authorization. The case is being heard by a single-judge panel at the Delhi High Court, presided over by Justice Amit Bansal. In November last year, the court appointed scholar Arul George Scaria and attorney Adarsh Ramanajun as amicus curiae to support ANI's copyright claims.

The legal dispute has gained further momentum as the Digital News Publishers Association (DNPA), which includes prominent news outlets such as Network18, The Indian Express, Hindustan Times, and NDTV, accused OpenAI of using their content without permission and republishing it on ChatGPT.

Music Industry’s Concerns

Following the news agencies, the music labels expressed their apprehensions. According to an industry insider, they are worried that "OpenAI and other AI systems can extract lyrics, music compositions, and sound recordings from the internet," potentially impacting their intellectual property rights.

OpenAI’s Response

OpenAI has firmly denied the allegations, maintaining that it adheres to fair-use guidelines when using publicly accessible data. In a court filing, the company argued that it has not trained its AI models using any content from the media groups involved in the lawsuit. OpenAI also asserted that it is legally entitled to utilize publicly available information without entering into collaboration agreements with Indian media companies.

Moreover, OpenAI challenged the jurisdiction of the Indian courts, stating that ANI is a U.S.-based organization with servers located abroad, thus arguing that the dispute should not be adjudicated under Indian law.

What’s Next?

The Delhi High Court is set to evaluate the case against the provisions of the Copyright Act of 1957. Legal experts believe that the outcome of this lawsuit could set a significant precedent, influencing how AI companies use copyrighted content in India and beyond.

The case underscores the growing tension between AI innovation and copyright protection, as industries worldwide grapple with the implications of generative AI technologies.