In a significant legal hurdle for the U.S. based AI giant, a Karnataka-based software firm named Anthropic Software Private Ltd. has filed a lawsuit against Anthropic PBC (the makers of Claude AI) over trademark infringement.
The dispute comes at a critical time as the American unicorn accelerates its expansion into India, having recently appointed former Microsoft India MD Irina Ghose to lead its local operations.
The Case: Anthropic vs. Anthropic
The lawsuit was filed in the Commercial Division of the District Court at Belagavi, Karnataka, in January 2026. The Indian firm alleges that the entry of the global AI giant has caused “massive confusion” among its stakeholders and customers.
Key Arguments by the Indian Firm
- Prior Use: Anthropic Software claims it has been operating under the name since 2017—four years before the U.S. entity was even formed in 2021.
- Loss of Visibility: The company argues that search engines and AI platforms are now prioritizing the global giant, effectively “burying” the Indian firm’s online presence.
- Reputational Impact: Founder Mohammad Ayyaz Mulla noted that even government offices, which previously funded their projects, are now confused by the dual branding.
- The “Passing Off” Claim: The suit alleges that the U.S. firm is “passing off” its services under a name that already carries goodwill in India.
What the Indian Company is Demanding
- Recognition of Prior Use: Formal legal status as the first user of the name in India.
- Permanent Injunction: Restraining the U.S. firm from using the “Anthropic” name for its India-facing services.
- Damages: ₹1 crore (10 million rupees) in compensation for economic losses and brand erosion.
Legal Status & Timeline
| Date | Event |
| January 20, 2026 | Court issued notices and summons to Anthropic PBC (USA). |
| February 9, 2026 | Public reports emerge of the legal battle as the AI giant prepares for the Delhi Summit. |
| February 16, 2026 | Next Scheduled Hearing; the court will revisit the plea for an injunction. |
Current Court Stance
The Karnataka court has declined to grant an interim injunction (a temporary ban) for now. This means Anthropic PBC can continue to operate under its current name in India until the next hearing on February 16.
Strategic Context: The Battle for India
This trademark clash is part of a broader trend where global AI giants face local friction during rapid expansion.
- India’s Trademark Law: Unlike some Western jurisdictions, Indian law (under the Trade Marks Act, 1999) heavily favors the “prior user.” Even if a global brand is more famous, a local company that used the name first in the domestic market often holds the legal advantage.
- The AI Summit: Despite the legal heat, Anthropic CEO Dario Amodei is still expected to attend the AI Impact Summit in New Delhi next week alongside Sam Altman and Sundar Pichai.
