IndiaMART v. OpenAI: Calcutta HC Rules on AI as Originator

The Calcutta High Court recently ruled on a case involving IndiaMART and OpenAI. The court addressed whether algorithmic systems are covered by existing laws. IndiaMART claimed that ChatGPT's search feature excluded its links and promoted competitors, causing trademark dilution. OpenAI argued that private AI platforms cannot be forced to guarantee visibility. The High Court stated that algorithmic omission is not the same as legal injury. It found that merely failing to feature a brand's URL is not infringement. OpenAI also cited IndiaMART's presence on the US Trade Representative's Notorious Markets List as a reason for exclusion. The court upheld commercial autonomy, saying private tech companies don't have to protect third-party commercial interests. The court also discussed the Information Technology Act. It observed that Large Language Models, which generate new outputs, are more like "originators" than mere intermediaries. However, the court noted that AI content isn't generated without a user's prompt, making the user the originator in that context. Ultimately, the High Court denied an interim injunction to IndiaMART. This ruling highlights a key distinction between passive digital platforms and generative AI models. The case has been referred for a final hearing. This decision could impact how generative AI is regulated.