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Time Warner Entertainment Company I.P v. Rpg Netcom Ltd
Judgment Summary — S. Ravindra Bhat, J.
Factual and Procedural Background
The Plaintiffs, described as US-based corporations and their affiliated concerns engaged in film production, filed a civil suit seeking a permanent injunction restraining the Defendant (a cable television network operator) from telecasting or broadcasting cinematograph films in which the Plaintiffs claim copyright. The Plaintiffs also sought delivery of infringing copies and an account of profits.
Plaintiffs alleged investigations showed the Defendant was exhibiting the Plaintiffs' films on its network without licence and that many of the copies shown were pirated. Plaintiffs contended unauthorized telecasting caused irreparable harm and affected both existing and future releases.
The Defendant responded by asserting non-joinder of necessary parties, absence of cause of action, and contending that the allegations related to a different local cable operator. The Defendant maintained it was a registered Cable TV operator which only received satellite/terrestrial transmissions and supplied signals to other cable operators, having no control over how those operators aired programmes. The Defendant also challenged the plaintiffs' representation and the admissibility/validity of the Power of Attorney.
After filing its written statement the Defendant ceased participation and was set down ex parte. The Plaintiffs led affidavit evidence and produced exhibits including powers of attorney, lists of titles, a compact disc of films and photocopies of censor certificates.
Legal Issues Presented
- Whether the Defendant, as a cable television network operator, infringed the Plaintiffs' copyrights by telecasting or broadcasting the cinematograph films listed in the suit without licence.
- Whether a permanent injunction should be granted restraining the Defendant from telecasting/broadcasting the Plaintiffs' specified titles (and whether that injunction can extend to future, unspecified works).
- Whether the suit is maintainable against the Defendant given the alleged non-joinder of necessary parties and the Defendant's contention that acts complained of pertain to another cable operator.
- Whether the Plaintiffs' mode of representation and the Power of Attorney produced in the suit are admissible and sufficient for prosecuting the action.
Arguments of the Parties
Plaintiffs' Arguments
- The Plaintiffs own copyrights in numerous cinematograph films and possess exclusive rights under Section 14 of the Copyright Act, 1957.
- The Defendant exhibited (and continues to exhibit) those films on its cable network without licence; many transmissions involved pirated copies.
- Unauthorized telecasting causes irreparable harm (including to future releases) and results in large losses because a single unlawful telecast reaches thousands of homes.
- The Defendant has significant market presence in the locality (citing market share and number of franchisees/operators) and intended to expand services — increasing the need for relief and regulation.
Defendant's Arguments
- The suit is liable to be dismissed for non-joinder of necessary parties and discloses no cause of action against the Defendant.
- Allegations in the plaint relate to a specific cable operator in New Alipore, Kolkata, not to the Defendant.
- The Defendant is a registered Cable TV operator which merely receives transmissions and supplies signals at signal injection points to other cable operators and has no control over those operators' programming decisions.
- The Plaintiffs' purported attorney, Ms. Dalia Sen Oberoi, cannot act as constituted attorney and the Power of Attorney relied on is unstamped, improper and inadmissible as evidence.
Table of Precedents Cited
No precedents were cited in the provided opinion.
Court's Reasoning and Analysis
The court's analysis proceeded by reference to statutory provisions and the factual record in the plaint and affidavits filed by the plaintiffs:
- The court accepted that copyright subsists in cinematograph films under Section 13(1)(b) of the Copyright Act, 1957 and reviewed the exclusive rights defined in Section 14 (including making copies, selling/hiring copies and communicating the film to the public).
- On the statutory status of the Defendant as a cable television network the court relied on Section 2(c) of the Cable Television Networks (Regulation) Act, 1995 to conclude the Defendant is a cable television network owner (controlling closed transmission paths and associated signal generation and distribution equipment designed for reception by multiple subscribers).
- The court observed Section 21 of the Cable Act provides that application of other laws (including the Copyright Act) is not barred, and drew attention to Rule 6(3) of the Cable Television Network Rules, 1994 which prohibits a cable operator from carrying any programme in respect of which copyright subsists unless licensed by the copyright owner.
- Applying those provisions, the court held that being a cable network owner imposes a primary obligation on the Defendant to ensure that transmissions through its closed transmission paths do not violate others' statutory rights; the presence of downstream cable operators (some of whom may pirate content) does not absolve the Defendant from responsibility.
- On procedural issues the court found that joinder of multiple plaintiffs was permissible under Order 1 Rule 1 CPC where parties have a common right to relief arising out of the same act or series of acts; and, noting Section 134(4) of the Trade and Merchandise Marks, 1999, the court found it had jurisdiction because the plaintiffs had offices in New Delhi.
- During submissions the plaintiffs limited their claim to injunctions in respect of specified existing titles and future works. The court found the plaintiffs had established a case for injunctive relief in respect of the existing and specified titles listed in the annexure to the suit.
- However, as regards relief in respect of future, unspecified works the court held such relief would be speculative — it would rest on assumptions of future violations and no evidence was produced to show an imminent threat of infringement by the Defendant's business practices. The plaintiffs did not establish a basis for injunctions in respect of anticipated future properties.
- Finally, the court noted the Defendant had not participated after filing its written statement and had not refuted the plaintiffs' evidence; on that uncontroverted record the court found for the plaintiffs and issued a permanent injunction restraining the Defendant (and its servants, agents, distributors, etc.) from transmitting or broadcasting any cinematograph film listed in the annexure without prior licence of the plaintiffs.
Holding and Implications
Holding: The suit was decreed and a permanent injunction was granted in favour of the Plaintiffs restraining the Defendant, its servants, agents and distributors from transmitting, broadcasting or carrying in its network any cinematograph film or work mentioned in the annexure to the suit without the prior licence of the Plaintiffs.
Direct consequences for the parties:
- The Defendant is permanently restrained from telecasting/broadcasting the specified films listed in the annexure absent licences from the Plaintiffs.
- The court did not grant relief in relation to future unspecified works — the injunction was confined to the existing and specified titles for which the plaintiffs proved copyright and infringement.
- The suit was decreed in the terms specified; the court awarded no costs.
The opinion does not purport to set out any new broad legal principle beyond the application of the cited statutory provisions to the facts; no case-law precedents were cited or relied upon in the provided text.
S. Ravindra Bhat, J.:— The Plaintiffs in the present Civil Suit seek a decree of permanent injunction restraining the Defendant from telecasting or broadcasting on their cable network any cinematograph film, the copyright in which vests in them. They also seek from this Court, a decree directing the Defendant to hand over possession of infringing copies and a decree in their favour for the profits made by the Defendant.
2. The facts of the case may be summarized as follows. The Plaintiffs, US based corporations, along with their affiliated companies and concerns are carrying on business of film production. They own various interests in and to the copyright in the films produced by them. It is averred that investigations conducted at the behest of the Plaintiffs revealed that Defendants were exhibiting films on its network. The copyrights in those works belong to the Plaintiffs and the defendants were exhibiting them without licenses. The Plaintiffs also allege that most of the times the films so shown were pirated copies of their works. In relation to these causes, the plaintiffs have approached this Court, claiming perpetual injunction to restrain the defendant from committing acts of infringement. Their claims, they submit in the present action are not limited to existing films in which copyright subsists but also in relation to future works.
3. The Plaintiffs aver that by virtue of their films having been published in a country included in the First schedule of the International Copyright Order, 1991, read with the relevant provisions of the Copyright Act, 1957 (hereafter referred to as “the Act”), they have exclusive claims to the rights mentioned in section 14 of the Act. The Plaintiffs aver as to the complex nature of the film production process, the various stages of release of the films, the distribution networks and the impact of new media on the film industry. Especially, they aver as to the impact of the cable television revolution on the film industry and the subsequent need to protect the interests of the producers in the said works. They aver that such unauthorized telecasting of their works causes irreparable harm and injury to them. The plaintiffs submit that this trend not merely affects their rights in the existing titles but also affects their future releases. They insist that even one unauthorized telecast is capable of reaching several thousand homes and to that extent they suffer huge losses in relation to release and sale rights.
4. The Plaintiffs have relied on a number of newspaper reports and proceedings at National Conference on Challenges to Indian Cinema in relation to the impact of cable television on film producers. Relying on the website of the Defendant, they submit that the latter has a 75% cable market share in Calcutta and is providing cable signals to 216 franchisees covering more than 2200 cable operators. The plaintiffs also allege that the Defendant intended to launch a joint venture company with M/s Satyam Infoway Ltd. to provide value added services, including video on demand. Emphasizing the need for a regulator to monitor the content of the cable network providers, the plaintiffs aver that the cable operators thrive in a culture of impunity as it is very difficult for Plaintiffs to collect evidence of such unauthorized licensing and police the network.
5. The Defendant avers that the suit is liable to be dismissed for non-joinder of necessary parties to the present action. It alleges that the suit discloses no cause of action against it and that all allegations made in the plaint pertain to a cable operator in New Alipore, Kolkata. The Defendant submits that it is registered as a Cable TV operator under the Cable TV Networks (Regulations) Act, 1995 (hereafter referred to as the Cable TV Act). It submits that it only receives satellite/terrestrial transmission of various channels and carries television software produced by independent production houses and delivers the same at the Signal Injection Point of various other cable operators. Thereafter, these signals are relayed to individual subscribers. It submits that it has no control over these Cable Operators, as far as the programmes aired by them are concerned.
6. The defendants further submit that Ms. Dalia Sen Oberoi cannot act as the constituted attorney of the Plaintiffs as she had been a lawyer with the law firm engaged by the Plaintiffs to file the present case. It is also submitted that the Power of Attorney filed by the Plaintiff is neither stamped nor proper and is not admissible as evidence.
7. After filing their written statement, the defendants stopped appearing in the proceedings. They were, consequently, set down ex-parte. The plaintiffs were permitted to lead affidavit evidence.
8. The Plaintiffs have filed evidence by way of affidavit (Exhibit ûPW 1.X) and the same was recorded in Court on 18th September 2007. They have also filed copies of Power of Attorney in favour of Mr. Kapil Saha (Exhibit PW 1/2), a list of titles in which they own copyright (Exhibit PW1/3), a compact disc containing the list of films (Exhibit PW1/4) and also photocopies of certificates of the Censor Board in relation to some of the aforesaid films.
9. Section 13 (1) (b) of the Copyright Act, 1957 provides that copyright subsists in cinematograph films. According to Section 14, “copyright” means the exclusive right subject to the provisions of the Act, to do or authorize the doing of anything (in the case of cinematograph films) to make a copy of the film, including a photograph of any image forming part thereof; to sell or give on hire, or offer for sale or hire, any copy of the film, regardless of whether such copy has been sold or given on hire on earlier occasions and to communicate the film to the public.
10. The plaintiffs have averred that they own copyright in relation to the cinematograph works mentioned in the annexure to the suit. It is also averred, and the plaintiffsÆ witness has deposed in that regard, that the defendant indulged in acts of infringement on the various dates specified, by exhibiting the cinematograph works in its system, without license. The defense of the defendant is that it only provides content to the other cable operators, but has no control over their activities.
11. The Cable Television Networks (Regulation) Act, 1995 (hereafter “the Cable Act”), provides, by Section 2 (c) that “cable television network” means any system consisting of a set of closed transmission paths and associated signal generation, control and distribution equipment, designed to provide cable service for reception by multiple subscribers. Section 21 of the Cable Act provides that the application of other laws, including the Copyright Act is not barred. Rule 6 (3) of the Cable Television Network Rulesá 1994 states that:
“No cable operator shall carry or include on his cable service any programme in respect of which copyright subsists under the Copyright Act, 1957 unless he has been granted a licenced by owners of copyright under that Act in respect of such programme.”
12. There can be no denial of the fact that the defendant is a cable television network owner, in terms of Section 2(c) of the Cable Act; it is therefore in control of closed transmission paths and associated signal generation, and owns control and distribution equipment, designed to provide cable service for reception by multiple subscribers. That some of these subscribers happen to be cable operators, who are able to manipulate the system, or indulge in acts of piracy, is no excuse for the defendant, in law. Its primary obligation is to ensure that the closed transmission paths and associated signal generation are carried out in such manner as to not result in violation of othersÆ rights, in existing laws, such as the Copyright Act.
13. As far as multiplicity of plaintiffs and their common representation in the proceedings are concerned, the provision of Order 1 Rule 1 CPC enables several parties to join as plaintiffs, all persons under the right to relief in respect of, or arising out of, the same act or transaction or series of acts or transactions exists. In view of this provision, and Section 134 (4) of the Trade and Merchandise Marks, 1999, since the plaintiffs have offices in New Delhi, this Court possesses jurisdiction to try the suit.
14. During the submissions, the counsel for plaintiffs had restricted the claim to the decree for injunction, in respect of the plaintiffsÆ specified and future works. This Court is of the opinion that the plaintiffs have established a case for grant of injunction as regards the existing and specified titles. However, as far as future works are concerned, the relief would be based on assumption of future violation by the defendants. No evidence is forthcoming that the defendantÆs business, or process of carrying on business is such that there is imminent threat of infringement. In any case, the plaintiff has not established how injunctions for anticipated threats to future properties can be granted.
15. In view of the above discussion, and the fact that the defendant has not stepped forward to refute the allegations of the plaintiff, deposed by its witness, the court finds for the plaintiff. Accordingly, the court issues a permanent injunction against the defendant, its servants, agents, distributors, etc, restraining them from doing any act, or transmitting signals or broadcasting, or carrying in its network, any cinematograph film or work mentioned in the Annexure to the suit, without prior license of the plaintiff.
16. The suit is decreed in the above terms. No costs.
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