COMPETITION COMMISSION OF INDIA
R. PRASAD, J.
UTV Software Communications Ltd., Mumbai -Appellant
Versus
Motion Pictures Association, Delhi -Respondent
9 of 2011 | CASE NO. 9 OF 2011
Decided On : 08-05-2012
The present matter relates to information filed by UTV Software Communications Limited (hereinafter referred to as informant) alleging that Motion Pictures Association, Delhi (hereinafter referred to as the Opposite Party or MPA) has abused its dominant position in contravention of provisions of section 4 of the Act.
2. The facts and allegations in the matter as per information, in brief, are as under;
2.1 The informant, a company registered under the Companies Act, 1956, is a producer, title holder and distributor of feature films. The informant's portfolio includes Hindi, Regional and Animation films. It is also associated with international productions and co productions.
2.2 The Opposite Party is an association registered under section 25 of the Companies Act, 1956. The OP as a body has been formed to promote and assist the business of production, distribution, exhibition of films and also to provide a common forum to its members to meet and address their problems. The members of the OP are engaged in the business of production, distribution and exhibition of films. The OP governs the arena of distribution and exhibition of motion pictures in the territory of Delhi, Uttar Pradesh and Uttarakhand (hereinafter referred to as "territory").
2.3 It has been alleged by the informant that the OP is abusing its dominant position by imposing unreasonable terms and conditions vide its Memorandum of Association and Articles of Association. The said unreasonable terms and conditions limit the production, supply, distribution and exhibition of films in the areas of operations of the OP.
2.4 As per the information, the OP forces its members to sign a Producer Distributor Certificate and an Acquiring Form for the purpose of registration of the films. The aforesaid Certificate and Form contained conditions such as unreasonable hold back periods i.e. period between the first theatrical release of cinematographic film till the said cinematographic film is distributed through other media for viewing such as satellite exhibition of films, on demand viewing, compact discs, internet etc. In case the above certificate is not signed by the members then their films cannot be registered and subsequently not allowed to be released in the areas of operations of the OP.
2.5 According to the informant, the Acquiring Form contains some conditions as per which the members have to agree for the transfer of all commercial and non-commercial rights of the film including the copyrights plus commercial video rights through any media including video parlour rights and telecasting rights to the distributor and imposes a holdback period of 5 years. The OP has made it mandatory for the producer/suppliers and distributors to sign the declaration and undertaking for registering a film with it prior to the release of the film in the territory. The said Form has to be signed by the members without any corrections or cuttings.
2.6 The informant has alleged that the OP through the agreements reflected in its Memorandum & Articles of Association, mandates its members not to deal with or to do business with persons engaged in the exhibition and distribution of films (i) who are not members of the Opposite Party; (ii) whose membership has been suspended or terminated; or (iii) members who have distributed a non-registered film. It is also alleged that the decisions and actions taken by the Opposite Party limit, control and restrict the distribution, exhibition and exploitation of films in the territory.
2.7 Further, the Film Acquiring Rules prescribe the penalty in case of premature satellite telecast of films in violation of the undertaking given by the producers/distributors. The executive committee of the Opposite Party has decided to levy a penalty on the members for alleged premature satellite telecast of films according to the grades/categories of the films. The picture/film is graded into four categories viz. 'A', 'B', 'C'& 'D' and a penalty of Rs. 2 lac, Rs. 1 lac, Rs. 50