Microsoft-backed artificial intelligence company OpenAI has told the Delhi High Court that Indian courts have no jurisdiction in a copyright case filed by news agency Asian News International, reported Reuters on Thursday.

This is because OpenAI does not have a physical presence or servers in India, said the company in an 86-page court filing on January 10, according to the news agency.

ANI filed the lawsuit in November, accusing OpenAI of using its content without permission to train its ChatGPT service. The agency is seeking damages of Rs 2 crore and the deletion of its material from OpenAI’s systems.

In its filing, OpenAI also said it could not comply with the request to remove training data sourced from ANI for ChatGPT as doing so would breach the company’s legal obligations in the United States.

The company told the High Court that it was defending similar lawsuits in the United States, where it is legally required to preserve training data during ongoing proceedings. OpenAI stated it “is therefore under a legal obligation, under the laws of the United States to preserve, and not delete, the said training data”, reported Reuters.

The lawsuit is among the most closely watched cases on artificial intelligence and copyright in India, where legal experts say the outcome could set important precedents for how AI platforms operate in the country. India is the second-largest national market for ChatGPT after the US, with 11.1% of its 20 crore weekly active users from the country.

ANI has claimed ChatGPT reproduces its content verbatim and falsely attributes information to the agency.

OpenAI told the court in November that it had blocklisted ANI’s content from being used in training data after receiving a legal notice in September. ANI, however, argued that its published works were still stored in ChatGPT’s systems and should be deleted.

In the submission, OpenAI said that “the relief being claimed by ANI was not subject to the processes of Indian courts and was beyond their jurisdiction”.

ANI, which Reuters holds a 26% stake in, stated it believes the Delhi High Court has jurisdiction and plans to file a detailed response. A Reuters spokesperson declined to comment but previously stated the agency is not involved in ANI’s business practices.

Globally, OpenAI is defending multiple copyright lawsuits, including one from The New York Times. It has repeatedly denied allegations of copyright infringement, asserting that its use of publicly available data qualifies as fair use.

The Delhi High Court is scheduled to hear the case next on January 28.

Also read: ANI v ChatGPT: How a lawsuit could shape artificial intelligence in India