Delhi High Court Rules Training LLMs Is Fair Dealing Under The Indian Copyright Act

In a significant verdict for the future of artificial intelligence in India, the High Court of Delhi has dismissed an interim injunction application filed by ANI Media Pvt. Ltd. (ANI) against OpenAI Opco LLC (OpenAI). The court ruled that the storage of copyrighted material for the purpose of training Large Language Models (LLMs) like ChatGPT qualifies as "fair dealing" under Section 52 of the Copyright Act, 1957.

A Technological Collision

The legal battle pitted a prominent news agency against a global leader in generative AI technology. ANI alleged that OpenAI’s unauthorized scraping, storage, and reproduction of its literary works amounted to copyright infringement on two counts: the "training claim"—concerning the storage of data to teach the LLMs—and the "output claim," which asserted that the AI produced near-verbatim copies of their articles.

The Court’s Reasoning

Justice Amit Bansal, delivering the judgment, emphasized that copyright laws must adapt to technological disruptions. The court analyzed the functionality of LLMs, noting that OpenAI’s models are not designed to "memorize and regurgitate" content. Crucially, the court found that the illustrative news articles cited by ANI—published after the training cutoff dates for the models—could not have been part of the training sets, thereby weakening the claim of verbatim memorization.

Regarding the " fair dealing " defense, the court offered a liberal, purposive interpretation of Section 52(1)(a) , which protects "private or personal use, including research." The court applied the " doctrine of updating construction ," ruling that research conducted by AI systems is no less valid than human research if it promotes scientific progress and societal benefit.

Key Observations

"The process of training LLMs underlying ChatGPT can be considered as a form of research for generating new knowledge and advancing artificial intelligence systems."

"Any interim injunction granted at this stage would, in my opinion, be detrimental to the growth of AI and more particularly, to the LLMs being developed in India."

"This Court is not inclined to grant an interim injunction at this stage. Balance of convenience is also against grant of interim injunction . Irreparable injury would be caused not only to Open AI but also to the public at large."

The Impact on Innovation

Justice Bansal also highlighted the public interest factor, noting that the development of AI is essential for India’s competitive edge in the global market. The court observed that forcing LLM developers to negotiate individual licenses for every public data point would make AI development economically unviable. Furthermore, the court noted that ANI had not proven that its market share was negatively impacted by ChatGPT, nor had it exercised its option to "opt-out" by using technological barriers like crawler blockers on its website.

The application for interim injunction was dismissed, with the court stressing that the observational rulings were confined to the interim stage. This decision marks a milestone in Indian jurisprudence, establishing that, at least prima facie, the infrastructure of the AI revolution—data training—is shielded by the principles of fair dealing.