Case Note & Summary
The appellant, Ultra Distributors Pvt. Ltd., filed a suit for infringement of copyright and sought an interim injunction restraining the respondents from exploiting the video copyright in certain Gujarati cinematograph films and programmes. The appellant claimed that under an agreement dated September 5, 2000, the respondents had assigned the video copyright in the films listed in Schedule 'A' to the appellant for a total consideration of Rs.13,51,000/-. The payment terms included Rs.3,00,000/- on signing, Rs.5,00,000/- on delivery of entire material, Rs.3,00,000/- 21 days after public notice subject to no claim, and Rs.2,51,000/- against delivery of balance U-Matic masters. The appellant paid Rs.3,00,000/- on signing. The respondents failed to deliver the material and allegedly started exploiting the films through third parties. The trial court dismissed the notice of motion for interim injunction, holding that the appellant had not made out a prima facie case. On appeal, the Bombay High Court perused the agreement and found that it clearly assigns the video copyright to the appellant. The court noted that the respondents had received part payment and were obliged to deliver the material. The court held that the appellant has a strong prima facie case, the balance of convenience is in favour of the appellant, and irreparable loss would be caused if the injunction is not granted. Accordingly, the court allowed the appeal, set aside the trial court's order, and granted an interim injunction restraining the respondents from in any manner exploiting the video copyright in the films and programmes covered by the agreement until the disposal of the suit.
Headnote
A) Copyright Law - Assignment of Copyright - Prima Facie Case - Section 18, 19, 55 of the Copyright Act, 1957 - The appellant claimed assignment of video copyright in Gujarati films under an agreement dated September 5, 2000 for consideration of Rs.13,51,000/-. The court held that the agreement clearly assigns the video copyright to the appellant and the respondents have no right to exploit the films. The appellant made part payment of Rs.3,00,000/- and the balance was payable on delivery of material. The court found a strong prima facie case in favour of the appellant. (Paras 2-4) B) Civil Procedure - Interim Injunction - Balance of Convenience and Irreparable Loss - Order 39 Rules 1 and 2 CPC - The court held that the balance of convenience is in favour of the appellant and irreparable loss would be caused if the injunction is not granted, as the respondents may exploit the films and the appellant would be left with a mere claim for damages. (Para 4) C) Copyright Law - Assignment of Copyright - Validity of Agreement - Section 19 of the Copyright Act, 1957 - The court noted that the agreement dated September 5, 2000 is in writing and signed by the parties, and thus satisfies the requirements of Section 19. The assignment of video copyright is valid and binding. (Paras 2-3)
Issue of Consideration
Whether the appellant has a prima facie case for grant of interim injunction restraining the respondents from exploiting the video copyright in cinematograph films assigned under an agreement dated September 5, 2000.
Final Decision
The appeal is allowed. The order dated 21st January, 2005 passed by the learned Single Judge is set aside. The respondents are restrained by an order of interim injunction from in any manner exploiting the video copyright in the cinematograph films and programmes covered by the agreement dated September 5, 2000 until the disposal of the suit.
Law Points
- Assignment of copyright
- prima facie case
- balance of convenience
- irreparable loss
- interim injunction
- Copyright Act
- 1957
- Section 14
- Section 18
- Section 19
- Section 55
