The Federation of Indian Publishers (FIP), representing over 80% of India’s publishing industry, has filed a copyright infringement lawsuit against OpenAI in the Delhi High Court.
The lawsuit accuses OpenAI of training its ChatGPT model on copyrighted literary works without authorization, a move the publishers claim undermines intellectual property rights and disrupts book sales.
Pranav Gupta, General Secretary of the FIP, emphasized the potential consequences of OpenAI’s practices. “If free tools provide detailed book summaries and extracts, why would readers buy books? This directly impacts sales and threatens creativity,” Gupta stated in a December 2024 announcement.
The case seeks a court order to compel OpenAI to delete datasets containing unauthorized material and negotiate licensing agreements with publishers.
Related: OpenAI Misses Key Deadline for Promised Content Copyright Tool
The lawsuit highlights ChatGPT’s ability to generate detailed summaries of copyrighted books. For example, when asked to summarize the first volume of Harry Potter, ChatGPT provided chapter-by-chapter breakdowns and key events.
While the AI avoided reproducing verbatim text, publishers argue this functionality discourages readers from purchasing books.
A Growing Global Challenge for Generative AI
The FIP lawsuit mirrors a broader trend of legal actions targeting generative AI tools like ChatGPT, which rely on large language models (LLMs).
LLMs are trained on vast datasets, including publicly available text, to generate human-like responses. Critics argue that the use of copyrighted material in these training datasets violates intellectual property laws.
Similar legal challenges have emerged worldwide. In November 2024, Indian news agency ANI filed a lawsuit against OpenAI, alleging unauthorized use of its news content and citing reputational harm caused by fabricated quotes attributed to ANI.
Globally, entities like The New York Times have taken legal action against AI companies for similar reasons.
Related: Microsoft, OpenAI Push to Dismiss Publisher Copyright Claims about AI Scraping in NYT Case
Mumbai-based lawyer Siddharth Chandrashekhar commented on the broader implications of these cases. “The judgments will test the balance between safeguarding IP and encouraging technological progress.” he said in an interview with local media.
Responses from Publishers and OpenAI
OpenAI has consistently denied allegations of copyright infringement, asserting that its models rely on publicly available data and operate within fair use principles.
In response to ANI’s lawsuit, the company argued that Indian courts lack jurisdiction since its servers are located outside India. However, the FIP counters that OpenAI’s active services in India place it under the country’s legal framework.
In a statement addressing similar accusations, OpenAI stated, “We build our AI models using publicly available data, in a manner protected by fair use and related principles, and supported by long-standing and widely accepted legal precedents.”
The FIP claims it has credible evidence that OpenAI used its members’ works to train ChatGPT. This aligns with concerns raised by other global publishers.
In October 2024, Penguin Random House updated its copyright policies to explicitly prohibit the use of its books for AI training. The company’s copyright clause states: “No part of this book may be used or reproduced in any manner for the purpose of training artificial intelligence technologies or systems.”
By contrast, HarperCollins proposed a licensing agreement allowing AI firms to use nonfiction books for a flat fee of $2,500 per title and already signed such a deal with Microsoft on their behalf. This sparked backlash from authors, who criticized the undervaluation of intellectual property and the lack of long-term compensation.
The Delhi High Court has instructed OpenAI to respond by January 10, with a full hearing scheduled for January 28. The outcomes of this and similar cases could establish key precedents for intellectual property protections in India, a rapidly growing market for AI technologies.