Case Note & Summary
The appeal arises from a suit filed by Goldmines Telefilms Pvt. Ltd. (plaintiff) against Reliance Big Entertainment Pvt. Ltd. (defendant No.1) and others seeking a temporary injunction to restrain the defendants from exploiting the Hindi dubbing rights, subtitling rights, satellite rights and cable television broadcast rights in respect of the Telugu Feature Film 'BHAI'. The plaintiff and defendant No.1 entered into an agreement dated 3 August 2012 by which defendant No.1 assigned several rights in six Telugu films, including 'BHAI', to the plaintiff for a total consideration of Rs.80 Lacs. Out of this, Rs.20 Lacs was specifically allocated for the rights in 'BHAI', which was paid by the plaintiff on 6 August 2012. The plaintiff alleged that despite the assignment, defendant No.1 was attempting to exploit the rights in 'BHAI' in violation of the agreement. The learned Trial Judge dismissed the plaintiff's Notice of Motion seeking temporary injunction, holding that the plaintiff had not made out a prima facie case. The plaintiff appealed. The High Court allowed the appeal, holding that the plaintiff had made out a strong prima facie case that the assignment was valid and binding. The court found that the balance of convenience was in favor of the plaintiff and that the plaintiff would suffer irreparable loss if the injunction was not granted. The court also held that Section 14(1)(a) of the Specific Relief Act, 1963, which bars specific performance of contracts involving continuous duties, does not apply to a contract for assignment of copyright because the assignment is a one-time transfer of rights. The court granted the temporary injunction as prayed for.
Headnote
A) Copyright Law - Assignment of Rights - Prima Facie Case - The plaintiff and defendant No.1 entered into an agreement dated 3 August 2012 assigning several rights in six Telugu films including 'BHAI' for Rs.80 Lacs, with Rs.20 Lacs specifically for rights in 'BHAI'. The plaintiff paid Rs.20 Lacs on 6 August 2012. The court held that the plaintiff has made out a strong prima facie case that the assignment was valid and binding, and the plaintiff's payment of consideration creates a prima facie case for temporary injunction. (Paras 1-10) B) Copyright Law - Temporary Injunction - Balance of Convenience and Irreparable Loss - The court found that the balance of convenience is in favor of the plaintiff because if the injunction is not granted, the plaintiff would suffer irreparable loss as the rights in the film are unique and cannot be compensated in monetary terms. The defendants have not shown any prejudice if the injunction is granted. (Paras 11-20) C) Specific Relief Act, 1963 - Section 14(1)(a) - Applicability to Copyright Assignment - The court held that Section 14(1)(a) of the Specific Relief Act, 1963, which bars specific performance of contracts involving continuous duties, does not apply to a contract for assignment of copyright because the assignment is a one-time transfer of rights and does not involve continuous duties. (Paras 21-25) D) Copyright Act, 1957 - Section 18 - Assignment of Copyright - The court held that under Section 18 of the Copyright Act, 1957, the owner of copyright may assign his rights to any person, and such assignment is valid and enforceable. The agreement between the plaintiff and defendant No.1 is a valid assignment of copyright. (Paras 26-30)
Issue of Consideration
Whether the plaintiff is entitled to a temporary injunction restraining the defendants from exploiting the Hindi dubbing rights, subtitling rights, satellite rights and cable television broadcast rights in respect of the Telugu Feature Film 'BHAI' pending the suit.
Final Decision
The appeal is allowed. The impugned judgment and order dated 15 July 2014 is set aside. The Notice of Motion No.452 of 2014 is made absolute in terms of prayer (a) thereof, restraining the respondents/defendants from exploiting the Hindi dubbing rights, subtitling rights, satellite rights and cable television broadcast rights in respect of the Telugu Feature Film 'BHAI' pending the hearing and final disposal of the suit.
Law Points
- Copyright assignment
- temporary injunction
- prima facie case
- balance of convenience
- irreparable loss
- specific performance
- Section 14(1)(a) Specific Relief Act
- 1963
- Section 18 Copyright Act
- 1957
