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Exhs.4 & 14 Spl. Civil Suit (Coml.)no.17/2017 Page 1 of 12
C O M M O N O R D E R (below Exhs.4 and 14)
(Delivered on this the 12th day of the month of December of the year
2018).
1. As these two applications are filed by the plaintiff and the
defendant respectively seeking an order of temporary injunction
against each other, they are heard together.
2. Ld. Adv. Shri N.Pai has submitted that the case of the plaintiff
that it has been assigned the copyrights by M/s Zee Entertainment
Enterprises Ltd. (ZEE), M/s Eros International Media Ltd. (EROS)
and M/s Shemaroo Entertainment Ltd. (SHEMAROO) and were the
authorised agents of M/s Yash Raj Films Pvt. Ltd. (YRF) is supported
by the agreements with the said companies and therefore, the
plaintiff had a locus of filing this suit.
3. Taking me through the affidavit filed by Dhananjay Dadhich,
Ld. Adv. Shri N.Pai submits that it proves the cause of action. Ld.
Adv. Shri N.Pai submits that it is not the case of the plaintiff that
they have a licence to play the music for which the said companies
have a copyright but it is the case of the defendants that the
plaintiff is not entitled to issue a licence, in terms of Section 33.
4. Taking me through Sections 30, 54 and 55 of the Copyright
Act and the judgments of the Hon'ble Apex Court, in Midas
Hygiene Industries (P) Ltd. v/s Sudhir Bhatia and others
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{(2004) 3 SCC 90} and M/s Leopold Café & Stores & Anr. V/s
Novex Communications Pvt. Ltd. {AIR 2014 SCC Online Bom
1342}, of the Lahore High Court in the case of Kartar Singh
Gayani and others V/s Ladha Singh {AIR 1931 Lah. 624}, of
the Hon'ble Delhi High Court, in the case of M/s Event and
Entertainment Management Association v/s Union of India &
Ors. {2016 SCC on line Delhi 6567} and of the Hon'ble Bombay
High Court, in the case of Asian Paints (i) Ltd., V/s M/s
Jaikishan Paints & Allied Products {2002(4) M.L.J. 536}, Ld.
Adv. Shri N.Pai submits that the application be granted.
5. As against this, Ld. Adv. Shri C. A. Coutinho has submitted
that the defendants had very clearly pleaded that they do not use
the Sound Recordings for which the plaintiff is claiming a copyright
and, taking me through Section 14(a)(iii) of the Act, Ld. Adv. Shri
C. A. Coutinho submits that the performance of the work has to be
in public. The learned advocate has submitted that though the
plaintiff has produced a CD of the recording, allegedly made by
Dhananjay Dadhich, it does not show that it was a public
performance and therefore, there is no question of granting an
injunction.
6. Taking me through Sections 33, 44 and 48 of the Act, Ld. Adv.
Shri C. A. Coutinho has submitted that the plaintiff cannot do
business in copyright unless it is a registered society. Ld. Adv. Shri
C.A.Coutinho has placed reliance on the judgment of the Delhi High
Court, in the case of M/s Event and Entertainment Management
Association V/s Union of India & Ors. Writ Petition
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no.12076/2016, passed on 12.10.2017, in support of his
arguments. Ld. Adv. Shri C. A. Coutinho submits that the application
for injunction filed by the plaintiff is liable to be dismissed while the
one filed by the defendant has to be granted.
7. Ld. Adv. Shri N.Pai, in rejoinder, has submitted that in the
judgment of the Delhi High Court M/s Event and Entertainment
Management Association dated 12.10.2017 (supra), no relief
was granted and, taking me through the provisions of Section 60,
Ld. Adv. Shri N.Pai submits that the counter claim and the
application for temporary injunction filed by the defendants does not
lie.
8. I have perused the two applications, the replies thereto, the
pleadings of the parties, the records and considered the arguments
advanced by Ld. Adv. Shri N. Pai on behalf of the plaintiffs and Ld.
Adv. Shri C. A. Coutinho on behalf of the defendants.
9. It is the case of the plaintiff that it was assigned the On
Ground Performance Rights in the Sound Recording of the Songs
contained in the Films which are part of the repertoire of ZEE, the
repertoire of Audio Songs/ Sound Recordings EROS and SHEMAROO
and was appointed authorised agent by YRF.
10. Alleging that the defendant, without obtaining the requisite
license from the plaintiff, was committing infringement of its
copyrights, the plaintiff has filed the suit and this application seeking
to restrain the defendant from publicly performing or in any manner
communicating the sound recording works which are assigned and
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authorised to the plaintiffs or to allow its premises or any premises
under its control to be used for the said purposes, without licence
from the plaintiff or from otherwise infringing the copyright in the
work owned and protected by the plaintiff.
11. As against this, it is the case of the defendant that it does not
use the sound recordings of the songs of which the plaintiff claims a
copyright. Claiming that the plaintiff is not entitled to carry on the
business and issue license after collecting amounts in respect of any
copyrighted works of the said companies, the defendant has filed a
counterclaim and the application at Exh.14 praying that the plaintiff
be restrained from (i) in any manner carrying the business of issuing
and granting licences and collecting licence fees in respect of any
copyrighted works, in their own name; and (ii) from making any
demands on the defendants to obtain a license from and pay any
licence fee to the plaintiff in its own name in respect of any
copyrighted works.
12. Section 55 (1) lays down that where copyright in any work
has been infringed, the owner of the copyright shall, except as
otherwise provided by this Act, be entitled to all such remedies by
way of injunction, damages, accounts and otherwise as are or may
be conferred by law for the infringement of a right.
13. Section 18(1) of the Act lays down that the owner of the
copyright in an existing work or the prospective owner of the
copyright in a future work may assign to any person the copyright
either wholly or partially and either generally or subject to
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limitations and either for the whole of the copyright or any part
thereof. Sub section (2) then lays down that where the assignee of a
copyright becomes entitled to any right comprised in the copyright,
the assignee as respects the rights so assigned, and the assignor as
respects the rights not assigned, shall be treated for the purposes of
this Act as the owner of copyright and the provisions of this Act shall
have effect accordingly.
14. The plaintiff that has produced on record, the copies of the
agreements entered with the ZEE, EROS and SHEMAROO, which
prima facie proves that the said companies had assigned their
copyrights to the plaintiff. It therefore requires to be concluded that
the plaintiffs is required to be treated, for the purposes of the Act,
as the owner of copyright.
15. Section 30 of the Act lays down that the owner of the
copyright in any existing work of the prospective owner of the
copyright in any future work may grant any interest in the right by
licence in writing by him or by his duly authorised agent. The
plaintiff has also produced the Agency Agreement dated 27.04.2016
executed between it and YRF.
16. The plaintiff has placed on record the affidavit of Dhananjay
Dadhich, who has stated on oath that he is the Senior Sales
Executive of the plaintiff and that on 20.03.2017, had visited
“Caravela Beach Resort Goa” situated at Varca, Goa while there was
a Bollywood Night organized in Saturday Disco, which is situated
within the premises of the said Resort and that he found and heard
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Bollywood songs wherein the plaintiff has On Ground Public
Performance Rights of Sound Recordings, which were played for
commercial exploitation without the express or implied consent of
the copyright owners. He has further stated on oath that in order to
substantiate his findings, he recorded the songs “Ude Dil Befikree”
from the film “Befikree”, which is the copyright of YRF, on his mobile
handset while it was played at the Saturday Disco, which he later
saved on his laptop and converted the same into a VCD/DVD.
17. The defendant has denied that Dhannajay Dadhich visited
their property or that Bollywood songs referred to by the plaintiff
were communicated/sung to the public and that Dhannajay Dadhich
had filed a false affidavit. The defendant has pleaded that the CD/
DVD was not recorded in the premises of the defendant and even
otherwise, it does not show presence of any public.
18. In my considered view, the positive facts asserted by
Dhannajay Dadhich, on oath, in his affidavit will have to be prima
facie accepted. As submitted by Ld. Adv. N. Pai, it is not the case of
the defendant that they have the licence to play the said songs. I
am therefore of the view that the plaintiffs have prima facie proved
the infringement of its copyright.
19. The Hon'ble Apex Court, in the case of Midas Hygiene
Industries (P) Ltd. (supra), has observed that the law on the
subject is well settled that in cases of infringement either of trade
mark or of copyright, normally an injunction must follow and the
grant of injunction also becomes necessary if it prima facie appears
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that the adoption of the mark was itself dishonest.
20. In the case of Kartar Singh Gayani (supra), the Hon'ble
Court observed that it will be obvious that the plaintiff cannot
protect himself from the consequence of such an injury except by an
injunction which is one of the remedies open to him under the
Copyright Act.
21. Section 33(1) of the Act lays down that no person or
association of persons shall, after coming into force of the Copyright
(Amendment) Act. 1994 commence or, carry on me business of
issuing or granting licences in respect of any work in which copyright
subsists or in respect of any other rights conferred by this Act
except under or in accordance with the registration granted under
sub-section (3). The first proviso lays down that provided that an
owner of copyright shall, in his individual capacity, continue to have
the right to grant licences in respect of his own works consistent
with his obligations as a member of the registered copyright society.
The second proviso further provides that the business of issuing or
granting license in respect of literary, dramatic, musical and artistic
works incorporated in a cinematograph films or sound recordings
shall be carried out only through a copyright society duly registered
under this Act. The third proviso then provides that a performing
rights society functioning in accordance with the provisions of
section 33 on the date immediately before the coming into force of
the Copyright (Amendment) Act, 1994 shall be deemed to be a
copyright society for the purposes of this Chapter and every such
society shall get itself registered within a period of one year from
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the date of commencement of the Copyright (Amendment) Act,
1994.
22. In the case of M/s Event and Entertainment
management (supra) the Hon'ble High Court of Delhi observed that
since PPL, IPRS and Novex were not registered as copyright
societies, they are by virtue of Section 33(1) of the Act proscribed
from carrying on the business of issuing or granting licences. It was
also observed that there is no obligation on any entity to register
itself as a copyright society; however, if they fail to do so, it cannot
carry on the basis as indicated in Section 33(1) of the Act without
being so registered.
23. However, in the case of Asian Paints (supra), the Hon'ble
Bombay High Court observed that registration under the Copyright
Act merely raises a prima facie presumption in respect of the
particulars entered in the Register of the Copyright and even if the
plaintiff's work was not registered, the plaintiff having established
that it had created the same prior to the defendant mere
registration by the defendant of its work cannot defeat the plaintiff's
claim.
24. Further, the Hon’ble Bombay High Court, in the case of
Leopold Cafe & Stores (supra) observed:
“It is not, I believe, the mere "carrying on of business"
that is interdicted by Section 33. It is the carrying on of
the business of issuing or granting licenses in its own
name, but in which others hold copyright. Every agent also
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"carries on business", but that is the business of agency,
with the agent functioning as such, i.e., clearly indicating
that it is acting on behalf of another, one who holds the
copyright. This is the only manner in which both Section
33 and Section 30 can be harmonized. An absolute bar
even on an agency, invoking Section 33, would
undoubtedly run afoul of the plain language of Section 30
and render the words "or by his duly authorised agent"
entirely otiose. I very much doubt it could have been the
legislative intent of Section 33 to compel every copyright
owner to set up a separate division to monitor the use of
its works. Entities like YRF and Shemaroo typically hold
copyright in a very large number of works. It is perhaps
more efficient for them to appoint an agency to ensure
that those who use their works have valid licenses and
have paid the license fees. These licenses are, however, to
be issued in the name of the copyright owner and license
fees to be collected for and on behalf of the copyright
owner. A society like PPL, on the other hand, can issue
license fees in its own name. It need not disclose the
names of the original holders of the copyright. The
distinction Mr. Bhatt draws is, I think, material; one
without which Sections 33 and 30 cannot both co-exist.
14. There is also the seemingly nice distinction between
"issuing" and "granting" a license. Both words must be
read together with their conjunctive. "Issuing" speaks
possibly to the physical act of generating a license.
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"Granting" is the legal effect of that issuance. What
Section 33 forbids is an engagement in the "business of
issuing and granting" licenses in works in which copyright
subsists. This cannot mean that a copyright owner cannot
appoint an agent to grant any interest on behalf of the
copyright owner. That is something that Section 30 in
terms permits. The express permission in Section 30
cannot be occluded by an extension of the express
prohibition in Section 33. All that the two sections, read
together, require is that the factum of agency must be
disclosed so that the licensee knows that it has a valid
license from the copyright owner; i.e., that it is made
known by the agent that it is acting on behalf of the holder
of copyright in the works in question, even though the
licensee may throughout deal only with the agent and
never directly with its principal. The minute the principal is
undisclosed and the license is issued and granted in the
agent's own name, the prohibition in Section 33 comes
into play.”
25. In the cast at hand, the plaintiff is not issuing the licences in
its own name but as the assignee and the authorised agent
respectively of the said companies. I am therefore unable to uphold
the contention of Ld. Adv. C. A. Coutinho that the plaintiff cannot do
business in copyright unless it had registered itself as a registered
society.
26. It is required to be noted that the plaintiff has also produced
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the General Power of Attorney dated 12.05.2017 issued by M/s Yash
Raj Films Pvt. Ltd. authorizing the plaintiff to commence and
conduct any suit before any judicial authority against unauthorized
public performance of the Sound Recordings from the company’s
repertoire by various Hotels at Goa listed in “Annexure A”. the
defendant is found listed in the said list.
27. Section 60 of the Act lays down that where any person
claiming to be the owner of copyright in any work, by circulars,
advertisements or otherwise, threatens any other person with any
legal proceedings or liability in respect of an alleged infringement of
the copyright, any person aggrieved thereby may, notwithstanding
anything contained in section 34 of the Specific Relief Act, 1963,
institute a declaratory suit that the alleged infringement to which
the threats related was not in fact an infringement of any legal
rights of the person making such threats and may in any such suit—
(a) obtain an injunction against the continuance of such threats; and
(b) recover such damages, if any, as he has sustained by reason of
such threats.
28. However, the proviso to this section lays down that this
section does not apply if the person making such threats, with due
diligence, commences and prosecutes an action for infringement of
the copyright claimed by him.
29. In the case at hand, as the plaintiff, as assignee of ZEE, EROS
and SHEMAROO and as authorised agent of YRF, had filed the suit
against the defendant for infringement of the copyright claimed by it
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prior to the defendant filing its counterclaim and the application at
Exh.14, I am in agreement with Ld. Adv. N. Pai that the application
for injunction filed by the defendant cannot be granted.
30. Hence, the application at Exh. 4 is hereby granted and the
application, at Exh. 14, is hereby dismissed.
Pending the hearing and final disposal of the suit, the
defendant is hereby restrained from publicly performing or in any
manner communicating the Sound Recording Works of ZEE, EROS,
SHEMAROO and YRF, which are assigned and authorised to the
plaintiffs and/or to allow its premises or any premises under its
control to be used for the said purposes, without licence from the
plaintiff or from otherwise infringing the copyright in the work
owned and protected by the plaintiff.
Margao
Dated:12.12.2018
( Edgar P. Fernandes )
District Judge-1
South Goa,
Margao.
Cg/-
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