JUDGMENT :

KAMAL KHATA, J.

1. This summary suit is instituted in this Court’s Commercial Division for the recovery of a sum of $300,000/- equivalent to Rs.2,44,26,480/- along with interest thereon at the rate of 18% p.a. on the principal sum of $ 3,00,000/- from the date of filing of the suit till payment and/or realization as particularly set out in Exhibit M to the Plaint.

2. By this Interim Application (“IA”) the Plaintiff seeks security, attachment of all properties of the Defendant both moveable and immovable available in India and pending the final hearing of the IA an affidavit disclosing on oath, all properties and bank statements particularly mentioned in prayer clause (c) of the IA and an injunction restraining the Defendants from in any manner dealing with and/or disposing in any manner whatsoever the properties belonging to the Defendant.

ESSENCE OF PLAINT:

3. The Plaintiff a Public Listed Company is engaged in the business of procurement, development, distribution and dissemination, broadcast/re-broadcast of music, entertainment, television programs including cinematograph feature films serials, talent hunts, reality shows through satellite, terrestrial and cable channels, through Direct to Home (“DTH”) using existing and emerging platforms in short the media and entertainment business. The Plaintiff is an owner of a large repertoire of copyrights in sound recordings and audio visuals/music videos as also the underlying musical and literary works embodied therein (Repertoire). Its music division is engaged in acquisition, distribution, exploitation and broadcasting content such as song/sound recordings, audio visuals songs/music videos and underlying literary and musical works embodied therein across various mediums.

4. The Defendant is a company incorporated in the United States of America engaged in the business of video sharing social networking service that allows users to create and share short-form videos, including videos set to, or automatically synchronized to music using artificial intelligence technology.

5. By a Record Music License Agreement dated 13th October 2020 (“Agreement”) the Plaintiff granted limited non-exclusive, revocable, non-transferable license to exploit the Plaintiff’s sound recordings repertoire (“Licensed Works”) to the Defendant for the period 1st July 2020 to 30th June 2021 which it undisputedly used . The Defendant was liable to pay US $ 6,00,000 plus applicable taxes in 4 equal quarterly instalments under clause 4(a) of the Agreement which were paid after multiple reminders.

6. By an amendment dated 15th September 2021, the agreement was extended by a period of one year commencing from 1st July 2021 to 30th June 2022 on the same terms as is in the original agreement, i.e. including the consideration, i.e. US $ 6,00,000 payable in four equal quarterly instalments.

7. The Defendant continued to exploit the Licensed Works for the two quarters and paid the Plaintiffs US $ 3,00,000 under its two invoices dated 17th September 2021 and 13th October 2021 only after a notice dated 13th January 2022.

8. It is the case of the Plaintiff that without making payments for the third invoice dated 21st January 2022 and the fourth invoice dated 22nd April 2022 the Defendant continued to exploit the Licensed Works. Therefore the Plaintiff was compelled to issue reminder notices dated 5th August 2022 and 19th August 2022 calling upon them to pay the principal sum of US$ 3,00,000 along with interest @ 18% per annum from the date of the invoices till payment and/or realization thereof. On account of failure to pay the dues or revert to the said notices the Plaintiff was constrained to issue legal notice dated 12th September 2022 to pay the aforesaid sum with interest within 48 hours of receipt of the notice.

9. In response to the notice, the Defendant by its email dated 13th September 2022 assured payment of the third instalment of US $ 150,000 by 31st October 2022 and the fourth instalment by 29th January 2023