Court Recognizes Prima Facie Case but Defers Relief, Urges Open AI to Present Defense Against Allegations of Selective Exclusion
In a significant ruling, the Calcutta High Court, presided over by Justice Ravi Krishan Kapur, has addressed the dispute involving India Mart Inter Mesh Limited and Open AI Inc., among others. India Mart, a prominent player in the business-to-business e-commerce sector, alleged that Open AI's ChatGPT unfairly excluded its listings based on a report by the United States Trade Representatives (USTR). The petition claimed this exclusion amounted to trade libel, dilution of its trademark, and unfair competition.
India Mart, recognized for its extensive network and the well-known "IndiaMART" trademark, argued that its exclusion from ChatGPT results was arbitrary and based on non-binding USTR reviews. The company contended that other entities named in similar USTR reports were not excluded, citing an inconsistency in Open AI's application of the USTR findings.
The court acknowledged India Mart's strong prima facie case, noting the lack of prior notice or opportunity for the petitioner to defend itself against the USTR findings. Despite recognizing potential commercial injury and loss of goodwill to India Mart, Justice Kapur refrained from granting any interim relief. The court emphasized the need for Open AI to respond to the allegations before any decisive orders are made, thus deferring the matter to a future hearing scheduled for January 13, 2026.
Justice Kapur instructed India Mart to ensure fresh service of notice to the respondents through multiple channels, urging Open AI to present its case in the upcoming hearing. The judgment underscores the intricate balance between protecting business interests and ensuring fair legal processes in cases involving international entities and digital platforms.
Bottom Line:
Trademark and Unfair Competition - Prima facie case established by the petitioner (India Mart Inter Mesh Limited) alleging selective discrimination and trade libel by respondents (Open AI Inc. and others) - Relief sought for exclusion from ChatGPT search results based on USTR reviews deferred to allow respondents an opportunity to be heard.
Statutory provision(s): Trade Marks Act, 1999, Information Technology Act
India Mart Inter Mesh Limited v. Open AI Inc., (Calcutta) : Law Finder Doc Id # 2828310
