In Indiamart Inter Mesh Limited Vs Open AI Inc. and Ors., decided on 20 May 2026 in IA No. GA-COM/1/2025 in IP-COM/57/2025, the Calcutta High Court, Intellectual Property Rights Division, presided over by Justice Ravi Krishan Kapur, dismissed an interim injunction application filed by IndiaMart against OpenAI concerning alleged discriminatory treatment by ChatGPT Search. The Court examined whether ChatGPT’s refusal to provide active IndiaMart links in response to user queries amounted to trademark dilution, disparagement, unfair trade practice, copyright infringement and violation of the Information Technology Act, 2000. IndiaMart contended that ChatGPT deliberately bypassed its platform and directly displayed sellers’ websites, thereby causing diversion of traffic and economic loss, allegedly relying upon the USTR Notorious Markets List 2024 to exclude IndiaMart. OpenAI argued that there exists no enforceable “right to visibility” on a private AI platform and that ChatGPT’s internal policies and output generation mechanisms could not be judicially controlled at the interim stage. The Court held that no statutory, contractual or constitutional obligation existed requiring ChatGPT to display IndiaMart links in a particular manner and observed that pure economic loss without infringement of a vested legal right is not actionable. Justice Ravi Krishan Kapur further made significant observations on generative AI jurisprudence, prima facie holding that ChatGPT appears to function more as an “originator” than a mere “intermediary” under the IT Act because of its generative and synthesized outputs, while clarifying that the issue requires final adjudication after expert evidence. The Court found no prima facie case of trademark infringement, disparagement, trade libel or copyright infringement and held that compelling ChatGPT to display IndiaMart links would amount to forcing a private entity to conduct business in a particular manner. Accordingly, the interim application was dismissed while directing expeditious hearing of the suit.
Disclaimer: Donot treat this as substitute for legal advise as it may contain subjective errors.
Written By: Advocate Ajay Amitabh Suman, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi
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IndiaMart Inter Mesh Limited v. Open AI Inc. and Ors.: A Landmark Judicial Examination of Generative AI, ChatGPT and Intermediary Liability in India
Introduction
The decision delivered by the Calcutta High Court in Indiamart Inter Mesh Limited Vs Open AI Inc. and Ors. marks one of the earliest detailed judicial discussions in India concerning the legal character of generative artificial intelligence platforms such as ChatGPT. The judgment, rendered by Justice Ravi Krishan Kapur on 20 May 2026, goes beyond a traditional intellectual property dispute and enters the evolving area of AI governance, intermediary liability, platform autonomy, economic rights on digital platforms, and the applicability of the Information Technology Act, 2000 to modern generative AI systems.
The case arose from allegations by IndiaMart that ChatGPT Search deliberately avoided displaying IndiaMart links while showing direct seller websites or competing platforms in response to user prompts. The dispute therefore raised larger questions concerning whether a private AI platform can be compelled to display or promote another business platform in a particular manner and whether generative AI systems should legally be treated as “intermediaries” or “originators” under Indian law.
The judgment is significant because the Court extensively discussed the architecture and functioning of Large Language Models (LLMs), the distinction between traditional search engines and generative AI systems, and the inadequacy of existing Indian technology law frameworks to deal with modern AI tools. Though the dispute was decided at an interim stage, the observations made by the Court are likely to influence future litigation involving artificial intelligence, digital platforms, algorithmic visibility, and AI-generated outputs in India.
Factual and Procedural Background
The petitioner, IndiaMart Inter Mesh Limited, operates one of India’s largest B2B online marketplace platforms. Since 1996, the platform has provided online business listings connecting suppliers and buyers across diverse product categories. The petitioner owns several registered trademarks associated with “IndiaMart” and claimed that a substantial part of its business depends on online visibility through internet searches and digital referrals.
The respondents included OpenAI Inc. and related entities associated with the operation of ChatGPT. The Court recorded that ChatGPT is a conversational AI platform powered through Large Language Models and capable of generating synthesized responses by processing enormous volumes of internet data.
The dispute specifically concerned “ChatGPT Search,” introduced broadly around October 2024. According to the petitioner, when users searched for products or suppliers on ChatGPT, the AI system allegedly bypassed IndiaMart links and directly displayed seller websites, whereas competing platforms allegedly received visible platform links. IndiaMart argued that this amounted to selective exclusion and discrimination against its platform.
The petitioner further alleged that OpenAI was relying upon the United States Trade Representative Review of Notorious Markets List 2024 (USTR List), where IndiaMart’s name appeared, to justify restricting visibility of IndiaMart links. IndiaMart contended that the USTR List had no binding legal force in India and that reliance upon such a foreign document was arbitrary and discriminatory.
An interim application seeking relief was filed before the Intellectual Property Rights Division of the Calcutta High Court. IndiaMart sought directions requiring ChatGPT to display accessible IndiaMart links in its responses and alleged infringement of intellectual property rights, dilution of trademark, disparagement, unfair trade practices, violation of the Information Technology Act, 2000, and violation of Articles 14, 19 and 21 of the Constitution of India.
The Dispute Before the Court
The primary issue before the Court was whether IndiaMart possessed any enforceable legal right requiring ChatGPT to display its platform links in a specific manner.
IndiaMart argued that ChatGPT was intentionally excluding the IndiaMart platform despite displaying links of competing platforms. According to the petitioner, such omission interfered with prospective business opportunities, diverted user traffic, and diluted the commercial value of its trademarks.
The petitioner relied upon Section 2(1)(w) and Section 79 of the Information Technology Act, 2000 along with Rule 3(1)(n) of the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021. IndiaMart contended that ChatGPT functions as an intermediary and therefore cannot discriminate between platforms while disseminating search-related information.
The petitioner further argued that internet users possess a right to access information concerning IndiaMart and that deliberate exclusion of IndiaMart links violated constitutional guarantees under Articles 14, 19 and 21 of the Constitution.
To support its arguments, the petitioner relied upon judgments including Neptune Assurance Co. Ltd. vs. Union of India, (1973) 1 SCC 310, Press Trust of India vs. Union of India, AIR 1974 SC 1044, and Neetu Singh & Anr. v. Telegram FZ LLC & Ors., 2022 SCC OnLine Del 2637.
OpenAI, on the other hand, argued that IndiaMart had no “right to visibility” on a private platform. It was contended that no contract, statute, or constitutional provision obligated ChatGPT to display IndiaMart links. OpenAI argued that forcing such visibility would interfere with private business autonomy and disrupt the functioning of generative AI systems.
The respondents also denied that ChatGPT was a conventional search engine or intermediary. They argued that ChatGPT functions more like an “originator” under Section 2(1)(za) of the IT Act because it generates independent synthesized responses rather than merely hosting or transmitting third-party content.
The respondents relied upon several precedents including Google LLC v. DRS Logistics (P) Ltd., 2023 SCC OnLine Del 4809, Myspace Inc. v. Super Cassettes Industries Ltd., 236 (2017) DLT 478, Tech Plus Media Private Limited v. Jyoti Janda, 2014 SCC OnLine Del 1819, Jasbhai Motibhai Desai v. Roshan Kumar, (1976) 1 SCC 671, and Rohit Pulp and Paper Mills Ltd. v. Collector of Central Excise, (1990) 3 SCC 447.
Reasoning and Analysis of the Court
Justice Ravi Krishan Kapur delivered an elaborate discussion balancing technological innovation, private commercial freedom, intermediary law, and evolving AI regulation.
The Court first observed that no law compels a private business to operate according to terms dictated by another business entity. The Court emphasized principles of free market autonomy and noted that compelling a platform to display another business in a particular manner would seriously interfere with commercial freedom.
The Court referred to the common law principle discussed by Lord Diplock in Home Office vs. Dorset Yacht Co. Ltd., [1970] 2 All ER 294, observing that common law generally does not impose liability for “pure omissions” unless there exists a statutory, contractual, or constitutional duty.
According to the Court, the injury complained of by IndiaMart was essentially “pure economic loss,” namely loss of user traffic and potential profit. The Court held that such economic loss alone does not create a legal cause of action unless some enforceable legal right has been infringed.
A major part of the judgment focused upon whether ChatGPT can legally be considered an “intermediary” under Section 2(1)(w) of the IT Act or an “originator” under Section 2(1)(za).
The Court analyzed the functioning of traditional search engines and contrasted them with generative AI systems. Justice Kapur explained that traditional search engines merely crawl and rank existing internet data. In contrast, Large Language Models synthesize information, generate new responses, and create content dynamically. ChatGPT was described as a system capable of independently generating poems, research material, code, drawings and textual outputs.
The Court observed that such functions go far beyond passive hosting or transmission of third-party content. Therefore, prima facie, ChatGPT possesses characteristics of an “originator” because it creates and generates electronic records rather than merely transmitting them.
The Court observed:
“ChatGPT has an element of newness, uniqueness and originality in its results which ought to bring it within the definition of an ‘originator’ rather than an ‘intermediary’.”
However, the Court clarified that this issue is legally complex and would ultimately require final adjudication based upon technical and expert evidence during trial.
The judgment also contains important policy observations concerning AI regulation in India. Justice Kapur recognized that the Information Technology Act, 2000 was enacted long before the emergence of generative AI technologies and therefore does not adequately address modern AI systems. The Court noted that legislative intervention would eventually become necessary to define liabilities and responsibilities relating to AI platforms.
The Court further referred to Google LLC v. DRS Logistics (P) Ltd., 2023 SCC OnLine Del 4809, where the Delhi High Court observed that no third party can compel a service provider to use its services in a manner benefiting another entity. This precedent significantly influenced the Court’s conclusion.
Regarding trademark dilution and disparagement, the Court held that no actionable case had been made out because there was no deceptive publication, false representation, confusion, or trade use of IndiaMart’s mark. Mere non-display or silence could not constitute disparagement or trademark dilution.
The Court also relied upon Berger Paints India Ltd. v. JSW Paints Pvt. Ltd., 2023 SCC OnLine Cal 4949, observing that trademark dilution under Section 29(4) of the Trade Marks Act, 1999 requires use “in the course of trade,” which was absent in the present case.
On copyright claims, the Court found that IndiaMart failed to identify any specific copyrighted work allegedly infringed by ChatGPT. Reliance was placed upon Tech Plus Media Private Ltd. v. Jyoti Janda, 2014 SCC OnLine Del 1819.
The Court also rejected the argument that reliance upon the USTR List itself created a legal wrong. According to the Court, OpenAI’s decision to rely upon such reports formed part of its internal policy and business decision-making process, which was not ordinarily justiciable.
Another important aspect discussed by the Court concerned the risk of opening “floodgates of litigation.” The Court cited the famous observation of Cardozo CJ in Ultramares Corp. v. Touche, (1931) 255 NY 170, warning against “liability in an indeterminate amount for an indeterminate time to an indeterminate class.”
The Court ultimately concluded that granting interim relief would effectively amount to compelling specific performance requiring continuous judicial supervision over AI outputs and platform functioning.
Final Decision of the Court
The Calcutta High Court dismissed the interim application filed by IndiaMart and refused to direct ChatGPT to display IndiaMart links in a particular manner. The Court held that IndiaMart failed to establish a prima facie case, balance of convenience, or irreparable injury necessary for grant of interim injunction.
The Court clarified that no vested legal right had been shown by the petitioner requiring enforcement against OpenAI or ChatGPT. The suit itself, however, remains pending for final adjudication, and the parties were directed to take steps for expeditious hearing.
Point of Law Settled in the Case
The judgment lays down several important legal principles relating to generative AI and platform liability in India.
The Court prima facie recognized that generative AI systems like ChatGPT may not neatly fit within the conventional definition of “intermediary” under the Information Technology Act, 2000 and may instead function as “originators” because of their ability to generate synthesized and original outputs.
The judgment also establishes that no private business possesses an automatic legal right to algorithmic visibility or preferential display on another private digital platform unless supported by a specific legal, statutory, or contractual right.
Further, the decision reinforces the principle that pure economic loss and loss of internet traffic, without infringement of a substantive legal right, are insufficient to sustain claims of trademark dilution, disparagement, or unfair trade practices.
The judgment is likely to become an important precedent in future Indian litigation involving artificial intelligence, algorithmic governance, digital platform autonomy, intermediary liability, and AI regulation.
Case Details
Title of the Case: IndiaMart Inter Mesh Limited Vs. Open AI Inc. and Ors.
Date of Judgment: 20 May 2026
Case Number: IA No. GA-COM/1/2025 in IP-COM/57/2025
Neutral Citation: 2026 SCC OnLine Cal ___ (Neutral citation not available in uploaded copy)
Court: Intellectual Property Rights Division, Original Side
Name of High Court: Calcutta High Court
Coram: Hon’ble Justice Ravi Krishan Kapur
Headnote
The Calcutta High Court in IndiaMart Inter Mesh Limited v. Open AI Inc. and Ors. refused interim relief against ChatGPT concerning alleged exclusion of IndiaMart links from AI-generated responses. The Court held that no entity possesses a legal “right to visibility” on a private AI platform and prima facie observed that generative AI systems like ChatGPT may function more as “originators” than “intermediaries” under the Information Technology Act, 2000 due to their ability to synthesize and generate new content. The Court further held that mere economic loss arising from reduced digital visibility, without infringement of a substantive legal right, does not constitute actionable trademark dilution, disparagement, or unfair trade practice.
Disclaimer: Readers are advised not to treat this as substitute for legal advise as it may contain errors in perception, interpretation, and presentation]
Written By: Advocate Ajay Amitabh Suman, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi
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