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Month: August 2026
ANI Media v. OpenAI: Reconciling Copyright Protection with AI Innovation
This note analyzes the Delhi High Court’s decision to dismiss the interim application filed by ANI Media Private Limited against OpenAI OPCO LLC on copyright infringement arising from both the training of large language models and their output generation.
The decision carries important implications for content owners (who should consider implementing technological barriers, strengthening contractual protections and entering into licensing arrangements with AI developers), AI developers (who should ensure training practices are structured around internal use and implement safeguards against verbatim reproduction) and companies deploying third-party AI tools (who should secure appropriate vendor representations and indemnification for IP-related claims). While the decision provides an indicative framework and a level of business certainty, it was rendered at the interim stage and is unlikely to be the final word, with several important issues awaiting determination at trial.
RBI’s Draft Guidance on Regulatory Principles for Model Risk Management
On June 24, 2026, the Reserve Bank of India (“RBI”) released its Draft Guidance on Regulatory Principles for Model Risk Management (“Draft Guidance”), which may reshape how financial institutions govern quantitative models, AI systems and algorithmic decision-making across the Indian financial sector.
This note examines certain key dimensions of the Draft Guidance, such as (i) its expansive definition of a ‘model’, (ii) the comprehensive governance architecture proposed, including board-level accountability, independent validation functions, and ‘kill-switch’ mechanisms, along with (iii) rigorous lifecycle management requirements spanning development through decommissioning. The framework applies to all eleven categories of RBI-regulated entities and extends to third-party and AI models, signaling an intent to close governance gaps that have widened as model adoption has accelerated.
The Draft Guidance introduces obligations around risk-based tiering, perpetual model inventories, enhanced documentation and consumer protection safeguards that will require significant operational investment. Its treatment of AI-specific risks – including explainability thresholds, bias mitigation, ‘red-teaming’ requirements and human oversight mandates – may position India closer to, and in some respects ahead of, regulatory expectations in mature jurisdictions such as the European Union, the United Kingdom and the United States.
Artificial Intelligence and Competition Law in India
The use of Artificial Intelligence has grown exponentially across industries in India in recent times, and such growth naturally comes with additional regulatory considerations. This note sets out a framework for analysis of AI from a competition law perspective, based on the Competition Commission of India’s ‘Market Study on Artificial Intelligence and Competition’ (2025). An important and often overlooked aspect is the CCI’s guidance on self-audits, which is essential for all businesses now using AI-powered tools.
Time to Revisit Secondment Structures: Delhi High Court’s FIS Ruling
Cross-border secondment arrangements have once again come under tax scrutiny following a recent Delhi High Court ruling, which held that reimbursement of salary costs of seconded employees (even without any markup) constituted “Fees for Included Services” under the India-USA tax treaty. The decision of this Court differs from earlier significant rulings by treating the foreign entity as the real and economic employer of the secondees and concluding that the secondment arrangement satisfied the “make available” condition under the tax treaty. The ruling has significant implications for multinational groups operating cross-border secondment arrangements, as it may increase their tax exposure and associated costs. This note analyzes the decision, draws contrast from the existing jurisprudence and highlights key considerations for structuring and implementing cross-border secondment arrangements.