High Court of Madras Decrees Ex Parte Copyright Infringement Suit for Exclusive Internet Webcasting Rights — Infringement Established as Defendant Failed to Contest Despite Service of Summons and Plaintiff Proved Assignment of Rights. Plaintiff's Rights Under Assignment Deed Dated 27.01.2020 for 21 Films Were Infringed by Second Defendant's Unauthorized Telecast, Entitling Plaintiff to Declaration, Injunction, and Damages Under Sections 55 and 62 of the Indian Copyright Act, 1957.

High Court: Madras High Court Bench: Principal In Favour of Prosecution
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Case Note & Summary

The suit pertained to copyright infringement of exclusive internet webcasting rights over 21 Tamil films. The plaintiff, a proprietor of a cinema business, claimed to have acquired these rights from a predecessor-in-interest through an assignment deed dated 27.01.2020. The suit was initially filed against two defendants: the first defendant was a production entity, and the second defendant was a media company. Before trial, the first defendant entered into a memorandum of compromise on 20.12.2024, agreeing not to telecast 14 of the films and paying Rs.75,000 as compensation. Consequently, the suit against the first defendant was disposed of on 08.01.2025. The second defendant, despite being served summons on 16.05.2024, did not enter appearance and was set ex parte on the same date. The plaintiff then adduced evidence and exhibited 12 documents, including the assignment deed (Ex.P7) and a letter from the second defendant acknowledging the plaintiff's rights (Ex.P11). The plaintiff sought a declaration of sole ownership, permanent injunction against infringement, and damages of Rs.1,50,000. The court, after examining the evidence, held that the plaintiff had proved ownership through a clear chain of title and that the second defendant had infringed those rights by unauthorized telecast. In the absence of any contra evidence, the claim for declaration and injunction stood proved. Damages were assessed at Rs.1,50,000, being roughly 70% of the consideration paid for the assignment, and were awarded with 6% interest per annum. The plaintiff, as the successful party, was also awarded Rs.3,00,000 as costs. The suit was decreed ex parte against the second defendant.

Headnote

A) Copyright - Ownership of Internet Webcasting Rights - Assignment Deed Validity - Indian Copyright Act, 1957, Sections 55, 62 - Plaintiff's ownership was proved through chain of assignments from original producers to predecessor-in-interest and finally to plaintiff under deed dated 27.01.2020 for 21 films - Held that plaintiff is sole and absolute owner of exclusive internet webcasting rights (Paras 5-6)

B) Copyright - Infringement - Unauthorized Telecast on OTT Platforms - The second defendant infringed plaintiff's rights by telecasting suit films despite acknowledging plaintiff's rights and agreeing to withdraw; second defendant's failure to appear led to ex parte decree - Held that permanent injunction restraining infringement was warranted (Paras 4, 6)

C) Damages - Assessment - Reasonable Compensation - Damages of Rs.1,50,000 awarded as reasonable compensation, being 70% of consideration paid for assignment, with 6% interest per annum from plaint date (Para 6)

D) Costs - Litigation Expenses - Court awarded Rs.3,00,000 costs against second defendant for court fees, lawyer's fees, and other expenses (Para 6)

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Issue of Consideration

Whether the plaintiff is the exclusive owner of the internet webcasting rights over the suit films and entitled to declaration, permanent injunction, and damages for infringement

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Final Decision

Suit decreed ex parte against the second defendant with a declaration of plaintiff's exclusive internet webcasting rights, permanent injunction restraining infringement, damages of Rs.1,50,000 with 6% p.a. interest from the date of plaint till realization, and costs of Rs.3,00,000

Law Points

  • Legal points not extracted
  • Proof of copyright ownership through assignment deed
  • ex parte decree upon failure to contest after service
  • assessment of damages as reasonable compensation based on consideration paid
  • procedure for copyright infringement suits under Sections 55 and 62 of Copyright Act
  • 1957
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Case Details

2025 LawText (MAD) (02) 17

C.S.(Comm.Div.) No.92 of 2024

2025-02-05

Senthilkumar Ramamoorthy

Citation not available

E.Senthilkumar

T.R.Kumaran

Bipin H. Shan and Ultra Media 7 Entertainment Pvt. Ltd.

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Nature of Litigation

Civil suit for declaration of exclusive internet webcasting rights, permanent injunction restraining infringement, and damages under the Indian Copyright Act, 1957

Remedy Sought

Plaintiff sought declaration of sole ownership of world exclusive internet webcasting rights, permanent injunction against infringement, and damages of Rs.1,50,000 with interest

Filing Reason

The second defendant allegedly infringed the plaintiff's exclusive internet webcasting rights over 21 films by unauthorized telecast on platforms such as YouTube and OTT

Previous Decisions

Suit was disposed of against the first defendant on 08.01.2025 based on a memorandum of compromise; second defendant was set ex parte on the same date after failing to appear despite service of summons

Issues

Whether the plaintiff is the exclusive owner of the internet webcasting rights over the suit films Whether the second defendant infringed the plaintiff's copyright Whether the plaintiff is entitled to declaration, permanent injunction, and damages

Submissions/Arguments

Plaintiff contended that he acquired exclusive rights under assignment deed dated 27.01.2020 from predecessor-in-interest Siddharth Electronics; the assignment covered 21 films and was perpetual; second defendant expressly acknowledged plaintiff's rights in a letter dated 22.03.2021 and agreed to withdraw disputed movies but failed to do so; plaintiff's ownership and infringement were proved by documentary evidence

Ratio Decidendi

In the absence of contra evidence from the ex parte defendant, the plaintiff's evidence of ownership through assignment deed and infringement through unauthorized telecast stood proved; declaration and permanent injunction were consequently granted; damages were assessed as reasonable compensation based on 70% of the consideration paid for the assignment; costs were awarded to the successful party

Judgment Excerpts

On examining the evidence adduced by the plaintiff and in the absence of contra evidence from the second defendant, the claim for declaration and permanent injunction stands proved. The amount claimed as damages is roughly 70% of the consideration paid for the assignment, and qualifies as reasonable compensation for loss. The second defendant is liable to pay the plaintiff an aggregate sum of Rs.3 lakhs towards court fees, lawyer's fees and other expenses.

Procedural History

Suit filed; first defendant entered into memorandum of compromise on 20.12.2024, suit disposed against him on 08.01.2025; second defendant served on 16.05.2024, did not enter appearance, set ex parte on 08.01.2025; plaintiff adduced evidence and exhibited documents on 22.01.2025; judgment reserved and delivered on 05.02.2025 decreeing suit against second defendant

Acts & Sections

  • Indian Copyright Act, 1957: 55, 62
  • Code of Civil Procedure, 1908: Order IV Rule 1, Order VII Rule 1
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