DELHI HIGH COURT
Valmiki J.Mehta, J.
Foundry Visionmongers Ltd. - Appellant
Versus
Satyanarayana Reddy S & Anr. - Resopndent
CS(OS) No. 2660/2015
Decided On : 03-09-2015
Territorial Jurisdiction - Copyright Infringement - Section 20 of the Code of Civil Procedure, 1908, Section 62 of the Copyright Act, 1957 - [SUMMARY]
Fact of the Case:
The plaintiff filed a suit seeking relief for infringement of its copyright in various software programs by the defendants. The plaintiff claimed territorial jurisdiction of the court in Delhi based on its exclusive reseller in Delhi.
Finding of the Court:
The court analyzed the provisions of Section 20 of the Code of Civil Procedure, 1908 and Section 62 of the Copyright Act, 1957 to determine territorial jurisdiction. The court found that the plaintiff's exclusive reseller in Delhi did not establish the plaintiff as carrying on business in Delhi, and thus, the court did not have territorial jurisdiction.
Issues: The main issue was whether the court had territorial jurisdiction to try the suit based on the plaintiff's business presence in Delhi through its exclusive reseller.
Ratio Decidendi: The court held that the plaintiff's business presence in Delhi, through its exclusive reseller, did not confer territorial jurisdiction as the plaintiff did not have an ownership interest or control over the business of the exclusive reseller.
Final Decision: The court directed the suit plaint to be returned to the plaintiff for filing in the correct territorial jurisdiction, and if not done within six weeks, the suit would stand dismissed.
Valmiki J. Mehta, J.
1. This is a suit filed by the plaintiff company/M/s. Foundary Visionmongers Ltd. By the suit, the plaintiff seeks reliefs of permanent injunction etc. with respect to the cause of action averred by the plaintiff in the plaint pertaining to infringement by the defendants of the Copyright of the plaintiff in plaintiff’s various software programs with the principal program being ‘NUKE’. The software programs of the plaintiff are used with respect to picture film, animation, commercials, and broadcast post-production. As per the suit plaint, the defendants are violating the Copyright of the plaintiff by using the software programs without obtaining the requisite licence from the plaintiff.
2. There are two defendants in the suit and addresses of both the defendants are of Hyderabad. Defendant No. 1 is an individual and defendant No. 1 is said to be carrying on its business in the name of the defendant No. 2. Plaintiff has filed the suit claiming existence of territorial jurisdiction of the courts at Delhi in terms of averments of paras 1 and 6 of the plaint that plaintiff is carrying on business in Delhi because plaintiff has its exclusive reseller (i.e. dealer) in Delhi. Paras 1 and 6 of the plaint read as under:-
“1. The Plaintiff, The Foundry Visionmongers Ltd. is a company registered under the laws of England of Wales having its registered office at 5 Golden Square Golden Square London W1F 9HT United Kingdom, The Plaintiff is carrying on business of marketing, selling and supporting services in India through its exclusive reseller ARK Infosolutions Pvt. Ltd. having its registered office located at 4428, Ganesh Bazaar, Cloth market, New Delhi – 110006. Col. J K Sharma (Retd.) is the duly authorized signatory of the Plaintiff and is competent to sign verify and institute the present proceedings. A copy of the Power of Attorney as executed in favour of Col. J K Sharma by the plaintiff has been filed in the present proceedings and may be kindly referred to.
xxx xxx xxx
6. In India, Plaintiff carries on business through its exclusive reseller, ARK Infosolutions Pvt. Ltd (hereinafter ARK Info) having its registered office located at 4428, Ganesh Bazar, Cloth Market, Delhi-110006. ARK Info is the Plaintiffs exclusive reseller in the territory of India for the software program NUKE (including its various editions and versions). ARK Info Provides services of marketing promotion, training on the software programs for the customers, sale of software licenses of the Plaintiff as well as supporting the maintenance services of the Plaintiff. For its services, ARK Info is entitled to a commission on ever sale of software license or sale of maintenance services thereof.”
3. As per the territorial jurisdiction; para 33 of the plaint, this Court has territorial jurisdiction because of Section 62(2) of the Copyright Act, 1957 and because the plaintiff is carrying on business in Delhi. This para 33 of the plaint pertaining to territorial jurisdiction reads as under:-
“JURISDICTION
33. This Hon’ble court has jurisdiction to entertain and try the present Suit by virtue of Section 62 (2) of the Copyright Act, 1957 as the Plaintiff carries on its business for profit and gains in Delhi through its authorized reseller ARK Infosolutions Pvt. Ltd. who offer the whole range of the plaintiff’s products and services. Amongst the several ways in which the Plaintiff carries on business are the following, though the list is not comprehensive and the Plaintiffs crave leave to rely on additional evidence at a later stage of the proceeding:
i. Through the distributor of Plaintiff which is located at 4428, Ganesh Bazaar, Cloth Market, New Delhi - 110006 to provide marketing, demonstration of the Foundry solutions, technical support and channel sales management.
ii. Through a host of other activities as enumerated in para 6 hereinabove which constitute and contribute in one-way or the other to the Plaintiffs’ business thereby clothing this Ho
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