High Court of Karnataka Examines Cognizability of Section 63 of Copyright Act in Writ Petition by Cab Aggregator; Issue Involves Classification of Offence Punishable with Imprisonment up to Three Years.

High Court: Karnataka High Court Bench: BENGALURU
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Case Note & Summary

Background: The dispute arose from a complaint filed by Lahari Recording Company (respondent no. 2), a music company, against ANI Technologies Pvt. Ltd. (Ola Cabs) and its directors for allegedly playing copyrighted music videos in Ola Prime cabs under the feature 'Ola Play' without a license, amounting to commercial exploitation. A complaint was lodged on 13-05-2017 before the Additional Commissioner of Police, leading to registration of FIR No. 191/2017 under Sections 63 and 64 of the Copyright Act, 1957 by the Jeevan Bhima Nagar police. The petitioners filed the instant writ petition under Articles 226 and 227 of the Constitution read with Section 482 CrPC seeking quashing of the FIR and all consequential proceedings. Facts: The 1st petitioner, Ola Cabs, had introduced a feature displaying music videos on screens fitted to headrests in its cabs. The 2nd respondent, owning copyright in several music works, alleged that this feature involved unauthorized commercial use of copyrighted content. On receiving the complaint, the police registered the FIR and initiated investigation. Aggrieved, the petitioners contended that the police lacked jurisdiction as the alleged offence under Section 63 was non-cognizable and the complaint was based merely on belief. Legal Issues: The primary question was whether an offence under Section 63 of the Copyright Act is cognizable or non-cognizable, thereby determining the validity of police action without a Magistrate's order under Section 155(2) CrPC. Secondary issues included whether the FIR disclosed a prima facie offence. Arguments: The petitioners argued that Section 63, with punishment ranging from 6 months to 3 years, fell under the Schedule II entry for 'imprisonment for less than 3 years', hence non-cognizable; thus, the police investigation was void ab initio. They further contended the complaint lacked material evidence. The respondents countered that since the maximum punishment could be 3 years, it was punishable with 'imprisonment for 3 years' and thus cognizable and non-bailable as per the Schedule, justifying the investigation. Court's Analysis: The Court began by tracing the history of Section 63, which initially provided for punishment up to one year, making it non-cognizable. By the Copyright (Amendment) Act, 1984, the punishment was enhanced to three years, with minimum six months and fine. The Court noted the objects and reasons of the amendment, highlighting the intent to combat piracy. It then examined the scheme under CrPC: Section 155 mandates that in non-cognizable cases, police must refer the informant to a Magistrate and cannot investigate without an order. The Court turned to Schedule II of CrPC, which classifies offences under other laws based on quantum of punishment. The critical entry states: if punishment is for less than 3 years, it is non-cognizable and bailable; if for 3 years and upwards, it is cognizable and non-bailable. The Court posed the question whether 'punishable with imprisonment... which may extend to three years' falls within the former or latter category. The Court began discussing precedents, specifically citing a Bombay High Court decision, but the text ends abruptly. Decision: The judgment is incomplete; the final decision and ratio are not captured. Therefore, the outcome remains undetermined.

Headnote

A) Criminal Procedure - Cognizability of Offences - Classification of Offence under Section 63, Copyright Act, 1957 - Code of Criminal Procedure, 1973, Sections 155 and Schedule II - The Court considered whether an offence punishable with imprisonment for a term which may extend to three years falls under the category of 'imprisonment for less than 3 years' or '3 years and upwards' in Schedule II of CrPC; the petitioners sought quashing of FIR on the ground that Section 63 is non-cognizable and the police investigation was without jurisdiction; the Court examined the objects and reasons of the 1984 amendment and relevant precedents to determine police power to investigate without Magistrate's order. (Paras 7-9).

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Issue of Consideration

Whether an offence under Section 63 of the Copyright Act, 1957 is a cognizable offence or a non-cognizable offence, and whether the police had jurisdiction to register and investigate the FIR without a Magistrate's order under Section 155(2) of the Code of Criminal Procedure, 1973.

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Law Points

  • classification of offences
  • Schedule II CrPC
  • cognizable vs non-cognizable
  • police jurisdiction to investigate
  • Section 155 CrPC
  • interpretation of 'imprisonment for less than 3 years'
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Case Details

2021 LawText (KAR) (12) 14

Writ Petition No.32942 of 2017 (GM-RES)

2021-12-20

Justice M. Nagaprasanna

Sri C.V. Nagesh, Sr. Advocate along with Sri Mahesh S. (for petitioners); Sri R.D. Renukaradhya, HCGP (for R1); Sri M.S. Shyam Sundar (for R2)

ANI Technologies Private Limited, Mr. Bhavish Aggarwal, Mr. Ankit Bhati

State of Karnataka through Station House Officer, Jeevan Bhima Nagar Police Station, and Lahari Recording Company

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Nature of Litigation

Criminal complaint alleging copyright infringement under Copyright Act, 1957, challenged on ground of police jurisdiction.

Remedy Sought

Quashing of FIR No. 191/2017 and all further proceedings.

Filing Reason

Petitioners allege police had no jurisdiction to investigate as Section 63 is non-cognizable; complaint lacks material to constitute offence.

Previous Decisions

FIR registered on 13-05-2017; no previous judicial decisions mentioned prior to writ petition.

Issues

Whether an offence under Section 63 of the Copyright Act, 1957 is a cognizable offence or a non-cognizable offence. Whether the police had jurisdiction to investigate without a Magistrate's order under Section 155(2) CrPC. Whether the complaint discloses prima facie offence of copyright infringement.

Submissions/Arguments

Petitioners argued that Section 63 is non-cognizable, thus police lacked jurisdiction; complaint only based on belief. Respondents argued that since punishment extends to 3 years, it is cognizable as per Schedule II CrPC; there was commercial exploitation of copyrighted works.

Judgment Excerpts

The petitioners are also known as Ola or Ola Cabs. On registration of the said complaint ... an FIR came to be registered in Crime No.191 of 2017 alleging offences punishable under Sections 63 and 64 of the Act. Section 63 of the Act, when it was initially promulgated prescribed punishment for the offence of infringement of the copyright to be punishable with imprisonment, which extended to one year or fine or both. The issue now would be if it is three years and upwards there can be no doubt that it is cognizable offence. When the offence is punishable with imprisonment for 6 months to 3 years or with fine only, whether such an offence would become cognizable or non-cognizable, is the issue that requires consideration.

Procedural History

Writ petition filed under Articles 226 and 227 read with Section 482 CrPC seeking quashing of FIR No. 191/2017. Matter heard on 16.12.2021 and reserved for orders. Judgment pronounced on 20.12.2021.

Acts & Sections

  • Copyright Act, 1957: 63, 64
  • Code of Criminal Procedure, 1973: 155, 482, Schedule II
  • Constitution of India: 226, 227
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High Court High Court of Karnataka Examines Cognizability of Section 63 of Copyright Act in Writ Petition by Cab Aggregator; Issue Involves Classification of Offence Punishable with Imprisonment up to Three Years.
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