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High Court Of Calcutta
SOUMITRA SEN, J.
SAREGAMA INDIA LTD. - Appellant
Versus
SURESH JINDAL - Respondent
C. S. 130 Of 2005
Decided On : 08/25/2006
COPYRIGHT - ASSIGNMENT - TERM - UNLIMITED - AGREEMENT - INTERPRETATION - NEGATIVE COVENANT - BREACH - TERMINATION - STATUTORY LIMIT - COPYRIGHT ACT, 1957.
Fact of the Case:
The Gramophone Company of India Limited (Petitioner), the owner of the original plates of the records and/or cassettes and/or sound recordings, filed an application seeking to restrain the respondents from selling any records or cassettes, discs, or any other sound recordings in respect of the films produced by the respondent No. 1 during the currency of the agreements, which were the subject matter of the present proceeding. The agreements in question were entered into between the parties for the assignment of the literary, dramatic, artistic, and musical works relating to any film produced by the respondent No. 1 during the specified periods.
Finding of the Court:
1. The agreements in question were held to be agreements of assignment of copyright. 2. The assignment under the agreements was not for an unlimited period but was limited to a period of 25 years, as evidenced by the negative covenant contained in the agreements. 3. The agreement of assignment could be terminated for committing a breach of the terms and conditions thereof by the assignee, as the assignment was not an absolute grant without any fixed period.
Issues: 1. Whether the agreements are the agreements of assignment of copyright? 2. Whether in the facts of the case the assignment is for an unlimited period? 3. Whether the agreement of assignment can be terminated for committing breach of the terms and conditions thereof by the assignee?
Ratio Decidendi: 1. The intention of the parties under the agreement, as ascertained from the terms of the agreement, determined the nature and extent of the assignment. 2. The negative covenant contained in the agreements, which restrained the respondent from infringing the copyright assigned in favor of the petitioner for a period of twenty-five years, indicated that the grant was not intended to be for an unlimited period. 3. The assignment of copyright, though treated as an absolute grant, did not automatically mean it was for an unlimited period. The intention of the parties with regard to the nature and extent of the assignment was required to be ascertained from the agreement itself.
Final Decision: The application was disposed of by directing that the respondents would be restrained from selling and/or marketing and/or offering for sale and/or causing any advertisement to be issued with regard to sound recordings containing literary, dramatic, or musical works or including any songs, music, or dialogues contained in the film "Katha", which was the subject matter of the third agreement dated 16th November 1982. However, no interim order was passed in respect of the films "Rajnigandha" and "Shatranj Ke Khiladi", which were the subject matter of the first and second agreements, respectively.
( 2 ) THE petitioner was earlier known as the Gramophone Company of India Limited. The present name has been adopted by and under a fresh certificates of incorporation dated 3rd November, 2000 due to change of name.
( 3 ) THE main business of the petitioner is recording of film songs, music and dialogues.
( 4 ) THE petitioner claims that such recording is carried on by and under several agreements entered into with the Film Producers.
( 5 ) UNDER the Copyright Act, 1957 (hereinafter referred to as 'the said Act'), the producers of the film is the first owner of the copyright in respect of all literary and musical works which includes songs, music and dialogues contained in the film. Such songs, music and dialogues are actually recorded in the sound-track of the film.
( 6 ) IT is the contention of the petitioner that by reason of the said agreement entered into with the producers such copyright existing in favour of the producer has been duly assigned to the petitioner. The petitioner further contends that by reason of such assignment the right of recording and making records and/or cassettes and/or sound recordings of the literary, dramatic and musical works exclusively belongs to the petitioner and that the petitioner has become the owner of such copyright.
( 7 ) IT is submitted that the petitioner is also the owner of the original plates of the records and/or cassettes and/or sound recordings under the provisions of the said act and is, therefore, the first owner of the copyright in the records and/or cassettes and/or sound recordings.
( 8 ) THE subject-matters of dispute in this proceeding are three agreements. The first agreement is with regard to the film "rajnigandha". The second agreement is with regard to the film "shatranj Ke Khiladi" the third is with regard to the film "katha".
( 9 ) IT is the contention of the petitioner that as per usual practice in the music industry prevalent in this country the entirety of the rights in the literary, dramatic and musical works relating to the contents of a film song including the dramatic and musical work contained there used to be acquired by the music company. In the formative years of the Indian film music industry the petitioner was the only such company.
( 10 ) IT is further submitted that even at present the general practice in the music industry continues to be, that the producer of a cinematographic film would be the owner of the copyright in the literary, dramatic and musical works relating to such films either as the first owner or as assignee. The producer, however, in turn, would assign all the right vested with the producer in relation to the literary, dramatic and musical works to the music company whereupon the music company would become the first owner of the copyright in the sound recordings as also the exclusive owner of the original plates from which sound recordings could be duplicated.
( 11 ) THE object of retaining ownership in the original plates was to preserve the right of the music company in respect of the sound recordings and to prevent duplication thereof. With the advent of modern technology the duplicating methods have radically changed, therefore, retaining ownership of the original plates as it was understood earlier actually does not serve the real purpose as was intended.
( 12 ) THE first agreement entered into by and between the parties is dated 24th february, 1973 (hereinafter referred to as the first Agreement ). Film "rajnigandha" was produced during the currency of the said agreement. It is submitted on behalf of the petitioner that in terms of the First Agreement the producer assigned the literary, dra
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