Legal principle

Hiring or renting in India copies of a cinematograph film authorized for sale or rental only in a territory outside India, without the copyright owner's authorization, infringes copyright under Section 51(b)(iv) of the Copyright Act, 1957, and such a restriction does not offend Article 19(1) of the Constitution.

Court decision

The court answered the infringement issue in favour of the plaintiffs, holding that the defendant's action of giving on hire or rent in India copies of cinematograph films authorized for sale or rental only in a particular territory outside India constituted infringement under Section 51(b)(iv), so long as the plaintiffs' authorization was not secured. The Article 19(1) issue was answered in the negative against the defendant. However, since the defendant contested the plaintiffs' ownership of all works claimed, no final relief was granted and evidence was required; the earlier ad-interim injunction was confirmed and was to bind the defendant till disposal of the suit.

Facts

Warner Bros. and its associated and affiliated companies, claiming to be owners, co-owners, assignees or licensees of copyrights in films, sued Mr. Santosh V.G., proprietor of the 'Cinema Paradiso' DVD rental business, for permanent injunction and damages. The goods in issue were DVDs of cinematograph films, largely Zone 1 copies coded for sale and rental only in the USA and Canada, which the defendant hired to members for Rs.75–100 per title against a refundable caution deposit. No customs department action appears in the extract; the plaintiffs themselves instituted suit CS(OS) 1682/2006 in the Delhi High Court, alleging infringement under Section 14(d)(ii) read with Section 51 of the Copyright Act, 1957. An ad-interim injunction had been granted earlier in the suit, which the court later confirmed.

Key provisions

• Section 53, The Copyright Act, 1957 — Importation of infringing copies.
• Section 14, The Copyright Act, 1957 — Meaning of copyright.
• Section 51(b)(iv), The Copyright Act, 1957 — When copyright infringed.
• Section 11, Customs Act, 1962 — Power to prohibit importation or exportation of goods
• Section 52, The Copyright Act, 1957 — Certain acts not to be infringement of copyright.
• Section 111, Customs Act, 1962 — Confiscation of improperly imported goods etc
• Section 53, Customs Act, 1962 — Transit of certain goods without payment of duty
• Section 27(2)(e), The Copyright Act, 1957 — Term of copyright in sound recording.
• Section 107, The Patents Act, 1970 — Defences, etc., in suit for infringement.
• Section 40, Customs Act, 1962 — Export goods not to be loaded unless duly passed by proper officer
• Section 72, The Copyright Act, 1957 — Appeals against orders of Registrar of Copyrights.
• Section 2(23), Customs Act, 1962 — Definitions