An Indian software firm has filed a lawsuit against the US-based AI company, Anthropic. The allegation is quite serious since it involves trademark infringement as the AI startup expands its footprint in India. This legal challenge comes at a time when global AI firms are looking at India as a key market for growth, talent, and enterprise adoption. The dispute highlights rising tensions around branding and intellectual property in the fast-growing AI field.
Anthropic Software Private Ltd., a Belagavi-based technology company founded in 2017, has filed a case in the Commercial Division of the District Court at Belagavi against the San Francisco-based AI giant Anthropic PBC. The India-based firm has alleged misrepresentation and erosion of its brand identity.
The Indian software company has been using the name ‘Anthropic’ in India for years, and the AI firm’s recent expansion into the country is confusing customers. The complaint was filed in January in a commercial court in Karnataka. Anthropic Software is asking the court to recognize its earlier use of the name in India. It is also seeking steps to prevent further confusion and has asked for Rs 10 million in damages.
The Indian company develops and deploys digital platforms across education, connectivity, and safety domains. It provides an AI-enabled education ERP and competitive examination ecosystem, a Wi-Fi monetization platform for institutions and public networks, and a patented driving safety solution.
“We are not heavily funded like Anthropic. We are an angel-funded company. Our products are patented and designed for the Indian market, and we have received awards from the government of India. The government of Karnataka funded us when we were operating as Anthropic, and now, there is confusion even within government offices,” the founder, Mohammad Ayyaz Mulla, said.
He also added: “As of now, I am exercising my legal right as it’s causing huge confusion to my customers.”
The company also approached the trademark office seeking reconciliation and is contesting the matter there, with the law supporting its position.
Incorporated under the Companies Act, 2013, and recognised as a start-up by both the Karnataka and the Central governments, it states that it has operated under the name ‘Anthropic’ since its inception. The US-based entity was formed in 2021.
According to advocate Alhan Kayser, “A trademark traditionally protects distinctive signs used in trade to identify goods or services. Indian law under Section 29 of the Trade Marks Act, 1999, recognises dilution through blurring or tarnishment. Platforms often rely on safe harbour defences under the Information Technology Act 2000. However, active involvement in promotion, monetisation or curation weakens such defences. Courts examine whether platforms exercise control or knowledge of infringing activity.”
“The core principles of goodwill consumer protection and fair competition remain unchanged. Application within virtual spaces requires nuanced interpretation rather than legislative overhaul,” added Kayser.
The court did not grant an immediate temporary ban on Anthropic’s use of the name. The case is scheduled to be heard again on February 16, as per the report.
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AI giant Anthropic announced plans to open an office in the country last October. It has also appointed Irina Ghose, the former managing director of Microsoft India, to lead its operations in the country. It shows the importance of India to global AI companies to grow beyond the US and Europe.
This legal challenge against Anthropic underscores the growing importance of brand protection. Both startups and multinational firms should prioritize compliance, due diligence, and trademark clarity in any fastest-growing tech markets. Judicial precedent, coupled with strategic registration enforcement and platform accountability, will shape the evolving trademark landscape.