As United States-based artificial intelligence major Anthropic sharpens its India strategy, it has found itself in an unexpected legal tussle — not with a rival AI lab, but with a Karnataka-based technology company that claims it has been using the same name since 2017.
The dispute is now before a commercial court in Karnataka.
How did two companies end up with the same name?
The Indian entity at the centre of the dispute is Anthropic Softwares Private Limited, headquartered in Belagavi (formerly Belgaum), Karnataka. Incorporated on April 6, 2017, the firm predates US-based Anthropic PBC, which was established in 2021 in San Francisco.
Founded and led by Mohammad Ayyaz Mulla, the Indian company has operated under the “Anthropic” name for nearly a decade.
According to its court filings, the US company’s recent move into India has created widespread brand confusion among customers, institutions and government stakeholders.
In January, Anthropic Software filed a suit in the Commercial Division of the District Court at Belagavi, Karnataka, reported TechCrunch. The complaint alleges passing off, misrepresentation and dilution of brand identity following the American AI firm’s India expansion.
The Karnataka-based firm is seeking recognition of its prior use of the name in India, a permanent injunction preventing the US firm from using “Anthropic” within the country, withdrawal of India-facing services under that brand name, and damages of Rs 1 crore (approximately $110,000-$120,000).
Explaining his stance, founder Mohammad Ayyaz Mulla said, “As of now, I am exercising my legal right as it’s causing huge confusion to my customers,” he said.
He has also clarified that the legal route is not meant to escalate tensions unnecessarily but to secure formal acknowledgement of prior usage.
“It is not only about the size of the companies but what is fair. Indian startups build credibility by delivering products, earning trust, and showing up year after year,” Mulla said in a statement.
Highlighting the impact of online displacement, he added, “When that hard-earned identity is suddenly drowned out online, the damage is real and immediate. Founders who play by the rules should not have to disappear simply because someone larger enters the space later.”
What does Anthropic Software (India) actually do?
Despite the name similarity, the two companies operate in very different segments of the AI ecosystem. Anthropic Softwares Private Limited is primarily a product-focused technology firm catering to institutions, government bodies and educational ecosystems across India — particularly in rural and underserved regions.
Its offerings include:
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AI-powered university ERP platforms such as TrueGuide and campus automation systems
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A competitive examination ecosystem
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Wi-Fi monetisation platforms for institutions and public networks
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Smart City technology solutions
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Public safety innovations, including systems like Quick Tunes aimed at driving safety and employee productivity
The company describes its AI work as “Context-Aware” and “Profile-Based,” designed for institutional automation and real-world operational datasets rather than general-purpose large language models (LLMs).
In its petition, the firm argues that the US company’s India entry has led to diverted enquiries, lost business opportunities and erosion of goodwill.
It also claims that search engines and AI-based discovery platforms now prioritise the global AI firm’s name, pushing the domestic entity down in visibility.
What is the status of the Karnataka court case?
A court order dated January 20, 2026, shows that the Belagavi commercial court has issued notice and suit summons to the US-based Anthropic.
However, the court declined to grant an interim injunction at this stage.
“At this stage, I have not found any such imminent threat in order to grant an ex-parte order of temporary injunction, without issuing notice to the defendant and without hearing the defendant,” the order said.
The matter has been listed for further hearing on February 16, 2026. Legal proceedings remain ongoing.
Why is India so important to the US-based Anthropic?
The legal dispute comes at a time when India has become a key growth market for global AI companies competing for international expansion beyond the United States and Europe.
Anthropic PBC — the San Francisco-based AI research firm
best known for its Claude large language model — announced plans in October 2025 to open its first India office in Bengaluru, India’s technology hub.
The firm has stated that its India team will focus on building AI solutions tailored to local needs, strengthening developer engagement, collaborating with policymakers and academic institutions, and forming partnerships with enterprises using AI to address country-specific challenges.
In January, Anthropic appointed former Microsoft India managing director Irina Ghose as India managing director, signalling the seriousness of its South Asia strategy.
India is described as the company’s largest market outside the United States. The expansion also unfolds amid intensifying competition from OpenAI, Google, Microsoft and Meta.
The global AI firm is reportedly in advanced discussions to raise $20 billion in new funding at a valuation of $350 billion. Its previous funding round in September 2025 raised $13 billion at a valuation of $183 billion, led by investment firm Iconiq.
Anthropic co-founder and CEO Dario Amodei is also expected
to visit India for the upcoming AI Impact Summit in New Delhi, where he will appear alongside other global technology leaders including Sam Altman, Jensen Huang and Sundar Pichai.
With inputs from agencies
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