As global artificial intelligence firms rapidly expand their reach, potential conflicts with existing local businesses can arise, a phenomenon underscored by a recent legal complaint in India. AI giant Anthropic, which is deepening its focus on the Indian market, has found itself embroiled in a trademark dispute with a local software company, Anthropic Software, over the use of its name.

Anthropic's strategic interest in India has been evident, with the company announcing an India office last October and subsequently appointing former Microsoft India managing director Irina Ghose to spearhead its operations in the country. This move highlights India's burgeoning importance as a key market for global AI companies looking to expand beyond their traditional bases in the U.S. and Europe.

The contention stems from a complaint filed in a commercial court in Karnataka in January, reviewed by TechCrunch. The Indian firm, Anthropic Software, asserts that it has been utilizing the name since 2017. It claims that the recent entry of the AI company Anthropic into the Indian market has caused significant customer confusion. To address this, the local company is seeking legal recognition of its prior use of the name and relief to prevent further confusion, alongside a demand for ₹10 million (approximately $110,000) in damages.

Mohammad Ayyaz Mulla, founder and director of Anthropic Software, conveyed to TechCrunch that his company's primary objective is not confrontation, but rather to achieve clarity and secure recognition for its established use of the name in India. He clarified that litigation is considered a last resort, to be pursued only if a clean and amicable coexistence cannot be established. Mulla emphasized the pressing nature of the issue, stating, "As of now, I am exercising my legal right as it’s causing huge confusion to my customers."

India, with its status as the world's most populous nation and one of the fastest-growing internet markets, has become a crucial battleground for leading AI companies, including Anthropic and its main competitor, OpenAI. The country is also preparing to host an AI Impact Summit in New Delhi in the coming week, an event slated to feature prominent industry leaders such as Anthropic co-founder and chief executive Dario Amodei, along with Sam Altman, Jensen Huang, and Sundar Pichai.

Regarding the legal proceedings, a court order dated January 20, also reviewed by TechCrunch, indicates that the court has issued a notice and suit summons to Anthropic. However, the court opted against granting an interim injunction and has scheduled the matter to return for further hearing on February 16. When contacted for comment on the matter, Anthropic did not provide a response.