OpenAI ChatGPT Wins Delhi High Court Ruling on AI Copyright Law

• OpenAI, developers of ChatGPT, are involved in a landmark AI copyright dispute before the Delhi High Court, which recently issued an interim ruling in their favor.
• Khaitan & Co. is representing OpenAI in this case.
• The Delhi High Court has, in an interim ruling, provided the first judicial interpretation of how copyright law and fair dealing exceptions under the Copyright Act 1957 apply to AI-generated content, with the main suit still ongoing.

The outcome of this case will have far-reaching consequences for the use of AI-generated content in India.

A landmark case has been filed before the Delhi High Court, marking India's first judicial consideration of copyright law and fair dealing exceptions in relation to artificial intelligence systems. The case involves OpenAI, the developers of ChatGPT, which is a large language model (LLM). Khaitan & Co. is representing OpenAI in this dispute. The Delhi High Court recently issued an interim ruling on July 24, 2026, dismissing an application for an interim injunction against OpenAI, holding *prima facie* that the use of copyrighted material for training LLMs constitutes fair dealing under the Copyright Act, 1957. The main suit, however, remains pending, and the court will continue to examine how copyright law applies to AI-generated content, specifically in the context of training and operation of LLMs.

The Copyright Act 1957 provides a fair dealing exception, which allows for limited use of copyrighted material without permission. The Delhi High Court, in its interim ruling on July 24, 2026, has provided the first judicial interpretation of this exception in relation to AI-generated content, holding *prima facie* that the use of copyrighted material for training LLMs falls under fair dealing. While the main suit is still ongoing, this interim decision has already begun to set a precedent for how copyright law interacts with artificial intelligence systems. This development has significant implications for businesses that utilize AI-generated content, as they may need to reassess their compliance policies.

The outcome of this case will have far-reaching consequences for the use of AI-generated content in India. Lawyers representing clients who utilize AI-generated content should closely monitor the continued development of this case and consider updating their compliance policies to reflect the evolving landscape of AI copyright law, particularly in light of the recent interim ruling. The court's eventual final ruling will provide further clarity on how copyright law applies to AI systems, ensuring that businesses can operate within the bounds of the law.

Lawyers should watch for the potential implications of this ruling on the use of AI-generated content in their clients' businesses, and consider updating their compliance policies to reflect the evolving landscape of AI copyright law.

Source: Original reporting via SCC Times