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2023 Supreme(Mad) 635

HIGH COURT OF JUDICATURE AT MADRAS
S. SOUNTHAR, J.
Ghanshyam Hemdev - Appellant
Versus
Bharathi Raja - Respondent
C.S. No. 97 of 2021
Decided On : 31-03-2023

Advocates appeared:
For the Plaintiff:K. Harishankar, Advocate. For the Respondent:R. Prabhakaran, Advocate.

The central legal point established in the judgment is the requirement for the party alleging undue influence to prove the same, the consideration of inadequacy in determining consent, and the interpretation of copyright provisions in the context of assignment and infringement.

Headnote:

Copyright - Internet and Digital Copyright - Indian Copyright Act 1957 r/w Section 55 and 62 - Summary of Acts and Sections: The court discussed the validity of the agreement dated 16.06.2014, the requirement of royalty and consideration for copyright assignment, the applicability of Section 31D and Section 19(3) of the Copyright Act, and the entitlement of the plaintiff to declaration and injunction. The court's decision was influenced by the interpretation of undue influence, adequacy of consideration, and the term of copyright assignment.

Fact of the Case:

The plaintiff filed a suit seeking declaration as the absolute owner of Internet and digital copyrights of 19 cinematograph films and a permanent injunction against the defendant for infringing the plaintiff's rights. The defendant resisted the claim, alleging undue influence, inadequacy of consideration, and non-compliance with copyright provisions.

Finding of the Court:

The court found that the defendant failed to prove undue influence and inadequacy of consideration. The court also held that the plaintiff was entitled to declaration and injunction as the assignee of digital copyrights, and the defendant's objections to Amazon constituted infringement.

Issues: The issues included the validity of the agreement, maintainability of the suit, inadequacy of consideration, applicability of copyright provisions, entitlement to relief, and other reliefs.

Ratio Decidendi: The court's decision was based on the failure of the defendant to prove undue influence and inadequacy of consideration, the interpretation of copyright provisions, and the entitlement of the plaintiff as the assignee of digital copyrights.

Final Decision: The suit was decreed in favor of the plaintiff, granting declaration and permanent injunction, with no order as to costs.

JUDGMENT

(Prayer: Civil Suit is filed under Order IV Rule 1 of the Original Side Rules, 1956 and order VII Rule 1 of CPC r/w Section 55 and 62 of the Indian Copyright Act 1957 r/w Section 2(1) (c) (xvii) first proviso to Section 7 of the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015, praying to,

(i) Declaring that the plaintiff is the absolute owner of all the Internet and digital copyright as set out in the agreement dated 16.06.2014 and Addendum agreement dated 16.06.2014 in the plaint schedule mentioned cinematograph films;

(ii) For a permanent injunction restraining the defendants, their men, agents, servants or persons acting on their behalf or claiming through them from in any manner infringing or interfering with the plaintiff''s Internet and digital copyright exploitation in the plaint schedule mentioned cinematograph films;

(ii) costs of the suit;

(iii) Passing such other order or orders as this Court may deem fit in the circumstances of the case.)

1. The present suit is filed by the plaintiff seeking declaration that he is the absolute owner of the Internet and Digital copyrights of the plaint schedule cinematograph films as set out in the agreement and the addendum agreement dated 16.06.2014 and for permanent injunction restraining the defendant from any manner infringing or interfering with the plaintiff''s Internet and digital copyright exploitation of the plaint schedule films.

Plaint Averments:

2.1 The plaintiff is in the business of acquiring, distributing and exploiting the copyrights in cinematograph films. The defendant is a popular Tamil film Producer and Director. The plaintiff entered into an agreement and addendum agreement dated 16.06.2014 with the defendant and acquired exclusive Internet rights including rights of exploitation of all mobile and portable media devices digital copyrights in 19 cinematograph films as mentioned in the schedule to the plaint.

2.2. Thus, plaintiff claimed to have acquired Internet and digital copyrights of the 19 films set out in the schedule to the plaint by paying valuable consideration. It was also stated by the plaintiff from the date of agreement, he had been exploiting the Internet rights of the film in various Internet platform including Amazon OTT platform by exhibiting the audio/video covered under the agreement. It was further averred by the plaintiff that the defendant violating the copyright assignment agreement dated 16.06.2014 made an objection with Amazon India OTT platform with regard to the execution of schedule films and the same was informed to the plaintiff by Amazon. The act of defendant in making objection with Amazon would amount to infringement of the plaintiff''s copyrights, which he acquired under the agreement mentioned above.

2.3. Thereafter, the plaintiff sent an email to defendant underlining the rights acquired by him under the above said agreement and called upon the defendant to withdraw his objections. However, the defendant has not withdrawn the objections till date and the movies in respect of which the plaintiff has got assignment of copyright have been blocked by the Amazon. In view of the objections raised by the defendant it caused serious loss and damage to the plaintiff. The plaintiff also issued a cease and desist notice dated 08.01.2021 to defendant calling upon him to cease and desist from the activities of infringement against the plaintiff. The notice sent by the plaintiff was returned with an endorsement “door locked”. The plaintiff also sent the very same notice by email on 11.01.2021 to the defendant and the same was delivered. Subsequently, another notice was issued by the plaintiff to the alternative address of the defendant and the same had been delivered on 21.01.2021. But the defendant has not sent any reply to the plaintiff. In these circumstances, the plaintiff was constrained to file the above suit seeking the aforesaid re

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