Both parties acknowledged that OpenAI used ANI content in training, but OpenAI argued that the material constituted a negligible portion of the overall dataset and that the model only extracted non-expressive elements (e.g., grammar, syntax, and language patterns).
The judge relied on the 'private or personal use, including research' provision in Indian copyright law, broadly interpreting 'research' to encompass AI training. This is the first time a court has explicitly included AI training under the private use exception. However, the exception is conditional: training copies must come from lawful sources (not shadow libraries or paywalled sites), and OpenAI never publicly disclosed training copies, only processing them internally.
The court applied a three-factor fairness test, all favoring OpenAI: OpenAI's use of ANI works was limited to training (no proven memorization or reproduction); ANI failed to prove economic loss (the parties operate in different industries); even when ChatGPT was asked about ANI headlines, the model only returned themes and at most a few article titles.
The judge cited U.S. cases (e.g., Bartz v. Anthropic, Kadrey v. Meta) and the Google Books case, finding that language model outputs are transformative.