Calcutta High Court declines interim relief against OpenAI; holds ChatGPT cannot be compelled to display or recommend IndiaMART’s platform

The Hon’ble Calcutta High Court considered the extent to which a private business may seek judicial intervention to regulate responses generated by an AI platform. The dispute arose from a petition by Indiamart Inter Mesh Ltd. (IndiaMART), an online B2B marketplace that connects buyers and suppliers and owns registered trademarks associated with its business.

IndiaMART alleged that ChatGPT failed to display or recommend IndiaMART’s listings in response to user queries, while allegedly providing links or references to competing third-party platforms. IndiaMART claimed that this reduced its online visibility and caused commercial loss.

IndiaMART’s principal grievance was not that OpenAI had unlawfully used its trademarks. Rather, it challenged the allegedly discriminatory manner in which ChatGPT generated responses and referred to competing commercial platforms.

IndiaMART argued that ChatGPT performed functions similar to a search engine and should therefore be treated as an “intermediary” under the Information Technology Act, 2000. On that basis, it relied on Section 79 of the Information Technology Act, 2000 and Rule 3(1)(n) of the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 to contend that OpenAI was required to act fairly and without discrimination.

While dismissing the application for interim relief, the Court made the following key observations: 

• No enforceable right to preferential display: The Court held that IndiaMART had not shown any contractual, statutory or other legal right requiring OpenAI to display or recommend IndiaMART on ChatGPT. A private commercial entity could not compel another private entity to modify its services only for the former’s commercial advantage.

• Commercial interest is not enough: The Court observed that IndiaMART may have had an economic interest in appearing in ChatGPT responses, but such commercial interest did not by itself create a legally enforceable right.

• ChatGPT not treated as an intermediary: Rejecting IndiaMART’s submissions under the Information Technology Act, 2000, the Court held that OpenAI did not fall within the definition of an “intermediary” for these purposes. The obligations under Rule 3(1)(n) of the IT Rules, 2021 were therefore inapplicable.

• AI-generated responses: The Court observed that ChatGPT-generated responses were more appropriately treated as content generated by an “originator” within the meaning of Section 2(1)(za) of the Information Technology Act, 2000, rather than as intermediary-hosted third-party content.

• Copyright claim not properly pleaded: Relying on Berger Paints India Ltd. v. JSW Paints (P) Ltd., the Court noted that IndiaMART had not properly pleaded a copyright infringement claim, and had not identified specific copyrighted works or explained how they had been copied or reproduced.

• Commercial unfairness is not necessarily a legal wrong: Referring to Tech Plus Media (P) Ltd. v. Jyoti Janda, the Court held that a business practice may appear commercially unfair without becoming legally actionable. The law does not require one business to operate in the manner most beneficial to another.

• Constitutional claims against a private entity: The Court rejected IndiaMART’s reliance on Articles 14, 19 and 21 of the Constitution of India, observing that these rights are generally enforceable against the State and its instrumentalities, and did not create obligations against OpenAI in the present case. 

Conclusion

The decision is significant for businesses seeking visibility in AI-generated responses. It clarifies that commercial disadvantage, without a specific legal right, will not ordinarily justify an order compelling an AI platform to recommend or display a business in a particular manner. The ruling also indicates that courts may be reluctant to convert general claims of unfairness in AI outputs into enforceable platform-design obligations at the interim stage.