Super Cassettes Industries Private Ltd v. Badshah Internet Service Pvt Ltd & Anr

Delhi High Court · 06 Sep 2016 · 2016:DHC:8615
S. Muralidhar
CS(OS) 3214/2015
2016:DHC:8615
intellectual_property appeal_allowed Significant

AI Summary

The Delhi High Court granted permanent injunction and damages to the plaintiff for unauthorized broadcasting of copyrighted works by the defendants through their cable network, emphasizing the plaintiff's ownership and entitlement to remedies including rendition of accounts.

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HIGH COURT OF DELHI
CS(OS) 3214/2015
SUPER CASETTES INDUSTRIES PRIVATE LTD .....Plaintiff
Through: Mr. Ravin Advocate $--1 1
VERSUS
BADSHAH INTERNET SERVICE PVT LTD & ANR.....Defendant
Through: Defendants are ex parte
CORAM:
DR. NEERA BHARIHOKE (DHJS), JOINT REGISTRAR (JUDICIAL)
17.05.2016 "The Registry is directed to re-number the present suit as CS
(Commercial) and while allotting the new number, the Registry shall also indicate on the file, the old registration number of the case."
Learned counsel for the plaintiff submits that he has filed the affidavit in ex parte plaintiffs evidence on 16.05.2016. However, the same is not on record so he shall contact the Registry and get the same placed on record.
Relist for ex parte plaintiff's evidence on 15.07.2016. f 11-^
DR. NEERA BHARIHOKE (DHJS)
JOINT REGISTRAR (JUDICIAL)
MAY 17,2016/hk A ^ 2016:DHC:8615 /3 $, HIGH COURT OF DELHI
3.
CS (COMM) 591/2016 & IA 22524/2015 (under Order XXXIX
Rules 1 and 2 CPC)
SUPER CASSETTES INDUSTRIES PRIVATE LIMITED Plaintiff
Through: Ms. Prachi Agarwal, Advocate.
VERSUS
BADSHAH INTERNET SERVICE PRIVATE LIMITED & ANR Defendants
CORAM: JUSTICE S. MURALIDHAR
06.09.2016
ORDER

1. This suit by Super Cassettes Industries Private Limited (the Plaintiff) is directed against Badshah Internet Services Private Limited (Defendant NO. 1) and Mr. Chandrakant A. Patel (Defendant No. 2) seeking permanent injunction to restrain the Defendants from infringing the Plaintiffs copyright, and for damages, rendition of accounts etc.

2. Summons in the suit and notice in the application were issued on 20th October, 201 5. Thereafter, fresh summons were again issued on 15th January, 2016 by this Court. Subsequently, on 18th March, 2016, this Court passed the following order: "As per the service report, the defendants have been served. Despite pass-over, they have not appeared. The defendants were served on 08.02.2016. They did not appear before the C.S. (Comm) 591 of 2016 Pagel of 8 Joint Registrar on 04.03.2016. Accordingly, they are proceeded ex-parte. Let the affidavit along with relevant documents towards examination-in-chief be filed within six weeks. List before the Joint Registrar on 17.05.2016 for marking exhibits and list before the Court on 06.09.20 16 for hearing. Interim order is made absolute."

3. The Court thus set Defendant Nos. 1 & 2 ex parte since despite service neither of them appeared.

4. The Plaintiff then filed an affidavit of exparte evidence of Mr. S.K. Dutta on 16th May, 2016.

5. The uncontroverted facts emerging from Mr. S.K. Dutta's affidavit are as under:

(i) The Plaintiff has its registered office at E-2/16, White House, Ansari

Road, Daryaganj, New Delhi.. (ii) The Plaintiff has also contributed to the promotion and development of new talent. The Plaintiff has also launched and/or promoted many songwriters, Music-Directors and Video Directors The Plaintiff has also established a Film Production Division, widening the scope of its offerings to the public.

(iii) The Plaintiff acquires state-of-the-art equipment and uses its expertise to provide the public with high quality, both technically and artistically, C.S. (Comm) 591 of 2016 Page 2of[8] which enhances the value of the Plaintiffs intellectual property.

(iv) The Plaintiff acquires copyright in all the literary, musical and other works which it commissions and manages, through assignments from the authors or other prior owners of copyright in the same. The Plaintiff is also the producer of sound recordings and audio visual works (cinematograph films) and that the Plaintiff is itself the corporate author of and the first owner of copyright in those sound recordings and audio visual works (cinematograph films) which the Plaintiff itself produces by taking the I initiative and responsibility for the same. The Plaintiff owns all copyrights in respect of its entire repertoire which is the subject of the present plaint; the Plaintiffs repertoire thus represents huge investment by the Plaintiff.

(v) The Plaintiff's business also includes giving licenses to various organizations for the use of works in which it enjoys copyright. The Plaintiffs robust copyright licensing programme is a regular part of its business for which the Plaintiff has put full arrangements in place. Such licences are routinely sought and granted even for very brief extracts from musical and audiovisual works, since even brief extracts are commercially very valuable: the essence of any popular song is normally captured in just a few notes and/or a few key words, which are in fact all that remain in the mind of the listener.

(vi) The Plaintiffs repertoire of cinematographic films and sound recordings and copyrighted music and lyrics are its most precious assets and it is only by exploiting its copyrights, which are its main property, that the Plaintiff is able to sustain its creative activities, thereby giving opportunities to writers, C.S. (Comm) 591 of 2016:DHC:8615 composers, artists and performers to reach a wider audience, bringing new works or artistic and entertainment value before the public and contributing to culture. Its vast repertoire adds up to tens of thousands of hours of invaluable music, which has to be proactively protected from infringers.

(vii) Defendant Nos. 1 & 2 sought to infringe the copyright works belonging to the Plaintiffs repertoire by broadcasting/communicating to the public, sound recordings, underlying works (lyrics and musical compositions) and audio visual songs (cinematograph films) and other works of the Plaintiff, through their Cable network under the logo of "BADSHAH", without a licence. The Plaintiffs learnt that the Defendants are one of the largest Ground Cable Network providers in the state of Gujarat having thousands of connections.

(viii) Like any other cable operator, the Defendants, through their Cable network under the logo of "BADSHAH" also provide services such as Cable Advertising and Non Stop Entertainment wherein they make extensive use of Hindi songs from commercial films and private albums and film extracts. The said services are mainly directed to enhance viewership amongst its subscribers and also increase revenue earned through advertising.

(ix) That it was in the course of random monitoring of the Defendants' channels on a sample basis that Mr. S.K. Dutta, Deputy General Manager of the Plaintiff came to know of the said infringing broadcasts of the Defendants.

(x) The Plaintiff was able to detect various instances of infringement by the ^ e-^- Defendants through their Cable network under the logo of "BADSHAH", wherein sound recordings, cinematograph films and underlying literary and musical works belonging to the Plaintiffs repertoire of audio video songs "Jumme Ki Raat Hai" from the film "Kick"; "Ikiota mera dil tha" from the film "Two States"; "Ooh lala ooh lala" from the film "Dirty Picture" etc. were communicated to the public, without the Plaintiffs permission or license.

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(xi) On coming to know of the said infringement, the Plaintiff through its • legal counsel by legal notice dated 25th July, 2015 apprised the Defendants of its rights and the necessity of obtaining a licence for making such broadcasts legal. The Plaintiff in the said legal notice further highlighted the specific instances of infringement detected on the Defendants' channel as aforementioned specifically and stated that by communicating the same to the public, the Defendants had infringed the copyright of the Plaintiff in the said works and were therefore liable to pay damages to the tune of Rs. 25,00,000 as past damages. The Plaintiffs reminded the Defendants of the need to obtain a license. • (xii) The Defendants duly received the legal notices as apparent from the internet delivery report. However, the Defendants did not reply to the said notice. It is submitted by the Plaintiff that an adverse inference should be drawn against the Defendants that they admit the contents of the Plaintiffs legal notice.

6. With the Plaintiffs evidence having been uncontroverted, the Court is satisfied that the Plaintiff has proved that its copyright has been infringed by Defendant Nos. 1 and 2.

7. However, as regards the claim for damages in the sum of Rs. 20,0 1,600 the Plaintiff has not given the calculation for arriving at the said figure. What is pleaded is that the Defendants have thousands of connections and that since the license fee for a Cable Operator's license is Rs. 18/- per connection per house hold per month plus applicable taxes, the damages are conservatively calculated to Rs. 20 lakhs. Copies of the sample Assignment Deeds have been marked as Ex. PW1/8A - Ex. PW1/8E. The fact remains that the damages are calculated on the basis of estimates which are not based on any investigation undertaken of the actual number of connections that the Defendants have given to subscribers. Consequently, the Court awards the Plaintiff Rs. 5 lakhs towards damages reserving the right of the Plaintiff to seek to recover further damages after the Defendants render accounts to the Plaintiff.

8. Accordingly a decree of permanent injunction is passed in favour of the Plaintiff and against the Defendants restraining the Defendants, their officers, servants, agents, partners and representatives and all others acting for and on their behalf from either engaging in themselves or from authorizing, the recording, distributing, broadcasting, public performance / communication to the public or in any other way exploiting the cinematograph films, sound recordings and /or literary works (lyrics) and Musical works (musical composition) or other work or part thereof throughout India, that is owned by the Plaintiff including all works whereon the Plaintiff has shown its copyright under Section 52 A of the Copyright C.S. (Comm) 591 of 2016 Act or doing any other act that would lead to infringement of the Plaintiffs copyright.

9 A decree is passed in favour of the Plaintiff and against the Defendants requiring the Defendants to render to the Plaintiff the accounts of the profits directly or indirectly earned by the Defendants, their officers, servants, agents, partners and representatives and all others acting for and on their behalf, from their infringing activities throughout India. The Plaintiff is permitted to institute appropriate proceedings against the Defendants to recover further damages on the basis of the accounts so rendered.

10. A decree is passed in favour of the Plaintiff and against the Defendants, for delivery up to the Plaintiff or its authorized representative by the Defendants, their officers, servants, agents, partners and representatives and all others acting for and on their behalf, of all infringing tapes, copies and negatives etc. bearing the copyrighted materials of the Plaintiff.

11. A decree is passed in favour of the Plaintiff and against the Defendants requiring the Defendants to pay the Plaintiff Rs. 5 lakhs by way of damages. towards the loss caused to the Plaintiff on account of the infringement of its copyright by the Defendants. This is without prejudice to the right of the Plaintiff to recover further damages in terms of para 9 above.

12. The Plaintiff is further awarded Rs. 20,000 towards costs of this suit which shall be paid to it by the Defendants.

13. The suit is decreed in the above terms and the application is disposed of. [I

14. Decree sheet be drawn up accordingly. t ^7^

S. MURALIDHAR, J

SEPTEMBER 06, 2016 fl