Why Anthropic's expansion in India might take a hit
What's the story
Anthropic, a leading artificial intelligence (AI) company, is facing a legal challenge in India over its brand name. The lawsuit has been filed by Anthropic Software, a Karnataka-based tech firm that has been operating under the same name since 2017. The Indian company alleges that it has suffered due to customer confusion caused by the US-based firm's entry into the Indian market.
Demands
Not looking for confrontation
The Indian firm is seeking recognition of its prior use of the name and relief to prevent further confusion. It has also demanded damages worth ₹1 crore. Mohammad Ayyaz Mulla, Founder and Director of Anthropic Software, told TechCrunch that they are not looking for a confrontation but clarity and recognition of their prior use in India.
Market significance
India is a key market for AI companies
India, the world's most populous country and one of the fastest-growing internet markets, has become a major battleground for AI companies. Anthropic's rival OpenAI is also eyeing this lucrative market. The country will host an AI Impact Summit in New Delhi next week, with industry leaders such as Sam Altman, Jensen Huang and Sundar Pichai in attendance.
Legal proceedings
Indian company alleges loss of online visibility
The Karnataka commercial court has issued a notice and suit summons to Anthropic. However, it did not grant an interim injunction and scheduled the matter for February 16. This comes as the Indian company alleges that its online visibility has been displaced by search and AI-based platforms prioritizing the global entity's name over theirs.
Online impact
Confusion among users, institutions, and government stakeholders
The Indian firm claims that the displacement of its online visibility has led to confusion among users, institutions, and government stakeholders. They have been associated with the "Anthropic" name for long. Mulla said they are a product-based IT company with patents and are pursuing cross-border expansion. However, due to this issue, people searching for them end up on the US company's website instead of theirs.
Legal strategy
Indian firm has sought multiple remedies in court
The Indian company is tackling this issue via legal channels, relying on corporate law principles that recognize prior use over later registration. It has also approached the trademark office seeking reconciliation and is contesting the matter there. The company has sought multiple remedies including a permanent injunction restraining Anthropic from using its name in India, a withdrawal of India-facing services under that name, accounts for revenues earned in India, and also damages.