The Copyright Act 1957 (the “Act”), supported by the Copyright Rules 2013 (the “Rules”), is the governing law for copyright protection in India. The Act and the Rules are easily accessible at copyright.gov.in or go direct to the Act or the Rules. Apart from the statute, the judicial decisions by the Supreme Court of India and the different state high courts play a significant role in the development of copyright jurisprudence.
India is a member of the Berne Convention (1971 text). In addition, India is also a member of the following international conventions on copyright and related rights:
The copyright of works of countries mentioned in the International Copyright Order is protected in India, with the same copyright protection as Indian works.
The most significant requirement for copyright protection is “originality”. The word “original” has not been defined in the Act but it is understood to mean a work that “owes its origin to the author”. The work must originate from the skill and labour of the author and must not be a copy of any other work. Another requirement of copyright protection is the fixation of the work in a tangible form.
The “originality” requirement is applicable to literary, dramatic, musical and artistic works but not to cinematographic films and sound recordings, as the last two are made using the former categories of works. Though there is no express stipulation regarding “originality” in respect of cinematographic films and sound recordings, copyright does not subsist in a cinematographic film if a substantial part of that film is an infringement of the copyright of any other work. Likewise, copyright does not subsist in a sound recording made in respect of a literary, dramatic or musical work if, in making the sound recording, copyright in some other work has been infringed.
Acquisition of copyright is automatic, and the right comes into existence as soon as the work is created. However, securing a formal registration is advisable for enforcement purposes because the registration certificate acts as prima facie evidence of ownership of copyright. The Register of Copyrights is prima facie evidence of the particulars entered therein.
The Registrar of Copyrights maintains a list of all registered works and this is available for public inspection.
In India, copyright can only subsist in original literary, dramatic, musical and artistic works, and through them, cinematographic films and sound recordings. No straitjacket definition is given for literary works and it merely states in the Act that literary work includes computer programs, tables and compilations, including computer databases. The definitions of dramatic work and artistic work are also inclusive in nature. Dramatic work has been defined as including any piece of recitation, choreographic work or entertainment in dumb show (eg, mime), the scenic arrangement or acting form of which is fixed in writing or otherwise. Similarly, artistic work is also defined in inclusive terms and states that it means a painting, a sculpture, a drawing (including a diagram, map, chart or plan), an engraving or a photograph, a work of architecture and any other work of artistic craftsmanship. The word “cinematograph” in cinematographic films has also been defined to include any works produced using a process analogous to cinematography. Musical works include graphical notations of music and sound recordings mean a recording of sounds from which such sound may be produced regardless of the medium on which such recording is made or the method by which such sounds are produced.
The law does not recognise non-categorised works and any work can only be protected if it falls into one of the above categories of work. The work needs to be fixed in a tangible medium of expression as the copyright law protects only expressions and not ideas.
Computer software and programs are treated as literary works and protected under the Copyright Act. For literary work, copyright means the exclusive right:
In addition to the above rights, the owner of the copyright of a computer program enjoys the right to sell or give it on hire, or offer it for sale or hire, regardless of whether such a copy has been sold or given on hire on a previous occasion. To register computer software, the applicant needs to file the entire source code if it is less than 20 pages. Alternatively, if the source code runs into more than 20 pages, then the first ten and last ten pages of the source code are required.
Databases are protected under copyright law as literary works. However, to obtain copyright protection for tables, compilations and computer databases, the work must exhibit some creativity or originality in the selection or arrangement of its contents. If negligible labour and skill were required to make the selection and compile the items that form the work, then no copyright can subsist in the work.
Copyright protection for a design may be claimed under the Act if the design qualified to be registered under the Designs Act but was not registered. However, in such cases, protection is limited and expires once the design has been applied to more than 50 articles by an industrial process. The judgment of a division bench of Delhi High Court in Microfibres Inc v Girdhar & Co (2009) provides clarity with respect to the conflict between “original artistic work” as defined under the Act and “design” as defined in the Designs Act. It was held that copyright would exist in the original work of art and the author or copyright holder would continue to enjoy the longer protection granted under the Act in respect of the original artistic work. The court held that the legislative intent was to grant greater protection to original, purely artistic works (eg, paintings and sculptures) and lesser protection to design activity which is commercial in nature. The protection accorded to a work which is commercial in nature is less than, and not to be equated with, the protection granted to a work of pure art.
The author, who creates the work, is the first owner of copyright in a work. The first owner for each category of work will be as follows:
Where the work is a public speech or address, the person who delivers such work in public will be the first owner of the copyright therein. However, if such work is made/delivered by a person on behalf of another person, such other person on whose behalf the work is made or delivered will be the first owner.
In India, the Act recognises the concept of a “work of joint authorship”, which means a work produced by the collaboration of two or more authors in which the contribution of one author is not distinct from the contribution of the other author(s). The courts in India have not yet fully defined and determined what amounts to an active and close intellectual collaboration, which is essential in the case of claiming joint authorship. In the case of Angath Arts Private Limited v Century Communications Ltd and Another 2008(3) ARBLR 197(Bom), the High Court of Bombay held that the “joint owner of a copyright cannot, without the consent of the other joint owner, grant a licence or interest in the copyright to a third party”. Furthermore, in the case of a work of joint authorship, all the authors (two or more) must individually satisfy the conditions essential for subsistence of copyright in the work. Joint authors enjoy all the rights granted by the Act, including bringing a suit for infringement and being entitled to relief such as an injunction, damages, account of profits, etc. The term of copyright of a work of joint authorship is calculated in relation to the longest-lived author.
When a work is published anonymously or pseudonymously, and the real name of the author remains undisclosed, copyright subsists for 60 years from the year after the work is published. However, if the author’s real name is disclosed within this period, copyright subsists for 60 years from the year after the author dies.
The Act also recognises orphan works. Where the owner of the copyright in a work cannot be found, any person may apply to the commercial court for a licence to publish or communicate such work, or a translation thereof in any language, to the public.
A collective work is a compilation in which several contributions, constituting separate and independent works in themselves, are assembled into a collective whole. A collective work covers the copyrightable authorship in the selection, co-ordination or arrangement of the work.
An author needs to be a natural person, which means, a corporation cannot be an author. However, it can be the applicant and owner of the copyright.
There is a difference between the copyright ownership principles pertaining to works created by employees on the one hand and independent consultants/freelance workers on the other hand. In the case of employment contracts (contracts of service), the general rule is that the employer will have copyright in a work created/authored by an employee in the course of employment, unless there happens to be an agreement to the contrary. However, in the case of a work-for-hire contract (contract for services), the copyright in the work generally remains vested with the author/creator of the work, unless the rights are assigned in favour of the commissioner in the form of a written and duly executed document/assignment agreement. However, specifically in the case of a photograph, painting, portrait, engraving or cinematographic film made or created for valuable consideration, the person who has commissioned such work will be the first owner of the copyright therein (in the absence of any agreement to the contrary).
Parties are free to enter into contracts which determine the ownership of the copyright vested in the work created. In the case of employment contracts, the general principle is that the employer is the owner of the copyright in the case of work created in the course of employment; however, if the employment agreement states otherwise, the agreement takes precedence over the general rule.
In the case of a work made or first published under the direction and control of a public undertaking, such public undertaking will, in the absence of any agreement to the contrary, be the first owner of the copyright therein.
Section 14 of the Act defines the term “copyright” to mean the exclusive right to do or authorise the doing of the following acts in respect of a work or any substantial part thereof.
In the case of a literary, dramatic or musical work (except a computer program):
In the case of a computer program:
In the case of an artistic work:
In the case of a cinematographic film:
In the case of a sound recording:
The duration of copyright depends upon the kind of work. The term of protection for different kinds of work is as follows:
Economic rights can be transferred/assigned or licensed.
The owner of the copyright of a work has the right to assign their copyright to any other person. The effect of assignment is that the assignee becomes the new owner of all the rights related to the copyright of the assigned work. The assignment of copyright is valid only if it is in writing and signed by the assignor or their duly authorised agent. The assignment of a copyright in a work should identify the work and specify the kind of rights assigned and the duration and territorial extent of such assignment. Furthermore, it should specify the amount of the royalty/consideration payable, if any, to the author or the author’s legal heirs during the continuance of assignment. The assignment will be subject to revision, extension or termination on terms mutually agreed upon by the parties.
A licence is the authorisation granted by the rights-owner in respect of the usage of a copyrighted work. The owner of a copyright in any existing work or the prospective owner of a copyright in any future work may grant any interest in the right by licence in writing by the owner or by their duly authorised agent. The formalities required for assignment of copyright also apply to licensing of the copyright.
If the owner of the copyright dies, the economic rights in the copyright are transferred to their legal heirs as per the applicable succession laws in case of intestate succession, or to the identified individual as per the will of the copyright owner.
See 4.2 Alienable Rights.
There are no minimum age or competency requirements for registering, exercising or transferring rights under the Act. However, the general principles of competency will apply in the case of any contracts for exercising, licensing or transferring/assigning the copyright. Therefore, neither party should be a minor or of unsound mind. The principles of free consent, lawful consideration and lawful object also apply.
There are certain recognised circumstances where subsequent dealings in works cannot be restrained by the copyright owner. More particularly, in the case of literary (not being a computer program), dramatic, artistic or musical works, a copy of the work which has been sold even once, or is otherwise already in circulation, cannot be restrained by the copyright owner from being issued to the public. This concept is also referred to as the “principle of exhaustion”.
As far as parallel importation is concerned, there has been much debate and deliberation as to whether India should follow the doctrine of “national exhaustion” or “international exhaustion”. At the time of writing this chapter, in January 2023, India follows the national exhaustion principle owing to a catena of judgments in this regard.
The moral rights of an author are duly recognised and protected under law, whereby an author can claim authorship of a work irrespective of any subsequent assignment of copyright therein. Moreover, these rights serve to protect against any distortion, mutilation, modification or degradation of the work affecting the author’s honour or reputation, even after the expiration of the term of copyright, and can thus be exercised also by the author’s legal heirs/representatives. Moral rights, which are independent of the author’s copyright, can be understood as the author’s right to paternity and integrity with respect to the work. These special rights of an author cannot be assigned; however, as to whether the author may waive or relinquish them remains debatable, as the Act does not specifically cover such a scenario. However, in the case of Sartaj Singh Pannu v Gurbani Media Pvt Ltd and Ors, 2015, the court observed that if a waiver of moral rights with regard to credit/paternity/authorship is voluntary, the same would not be contrary to public policy and would thus be permissible. As such, waiving a moral right may be permissible on a case-by-case basis, especially if it is not in conflict with public policy.
Section 65A of the Act was introduced in 2012 to effect Article 11 of the WIPO Copyright Treaty.
Section 65A provides that any person who circumvents an effective technological measure applied for the purpose of protecting any of the rights conferred by the Act, with the intention of infringing on such rights, may be punished with up to two years’ imprisonment and will also be liable to pay a fine.
However, there is nothing to prevent any person from:
Section 65B of the Act was introduced in 2012 to effect Article 11 of the WIPO Copyright Treaty.
Section 65B provides that any person may be punished with up to two years’ imprisonment and will also be liable to pay a fine, if they knowingly:
If the rights management information in any work is tampered with, the owner of copyright in such work may also use civil remedies against the persons responsible for such acts.
The 1994 amendment to the copyright statute extended the operation of legal provisions relating to collective licensing bodies, called copyright societies, to all rights relating to all domains of works.
Presently, the following four copyright societies are registered in India:
The re-registration of Phonographic Performance Limited (PPL) for sound recordings is pending.
Furthermore, the following applications for registration as a copyright society are pending:
A copyright society may:
To obtain a synchronisation right, the interested party will have to obtain a licence from the rights-owners of the musical work as well as the sound recording. The copyright in the musical composition is owned by the composer, while the copyright in the sound recording is owned by the music label/producer.
Section 52 of the Act provides a list of exceptions to copyright. The list is comprehensive and statutory in nature. The complete list of exceptions can be found here.
Private or personal use, including research, does not constitute an infringement of copyright and is expressly listed as an exception under Section 52(1)(a)(i) of the Act.
The Act provides exceptions with regard to reproductions of cultural goods/buildings and the following is permitted:
An exception for intermediaries is given under Section 52(1)(c) of the Act. This section provides that transient or incidental storage of a work or performance for the purpose of providing electronic links, access or integration, where such links, access or integration have not been expressly prohibited by the rights-holder, shall not be considered infringement unless the person responsible is aware, or has reasonable grounds to believe, that such storage is of an infringing copy.
It is further given that if the person responsible for the storage of a copy has received a written complaint from the owner of the copyright in the work, stating that such transient or incidental storage is an infringement, the person responsible for the storage must refrain from facilitating such access for a period of 21 days or until they receive an order from the competent court instructing them to refrain from facilitating access, or where no such order is received before the expiry of 21 days, the person may continue to facilitate such access.
The fair-use defence in India is provided under Section 52 of the Act which stipulates, inter alia, that fair dealing with any work for the purpose of criticism or review, whether of that work or of any other work, does not constitute infringement of copyright (Section 52(1)(a)(ii)).
It was observed in the Madras High Court in M/s Blackwood & Sons Ltd v AN Parasuraman (AIR 1959 Mad 410) that in order to constitute a fair dealing, there must be no intention on the part of the alleged infringer to compete with the copyright holder of the work and to derive profits from such competition and also, that the motive of the alleged infringer in dealing with the work must not be improper.
In view of this, a satire or parody must satisfy two conditions to use the fair-dealing defence:
Freedom of speech and expression is one of the fundamental rights of the Indian legal system. It has been suitably captured under the Act under various exceptions to Section 52. Indian courts have discussed this issue in several website blocking orders, which are considered to be one of the most successful, cost-effective and proportionate means to address the issue of rogue websites. The Delhi High Court in UTV Software Communication Ltd v 1337X held that the extent of website blocking should be proportionate and commensurate with the extent and nature of the infringement. A court should pass a website blocking order only if it is satisfied that the same is “necessary” and “proportionate”. The proportionality principle is used to strike a fair balance between the right to intellectual property on the one hand, and the right to trade and freedom of expression on the other.
The Act provides for broadcasting reproduction rights in favour of broadcasting organisations and the rights of performers over their performances.
Neighbouring rights can be transferred/assigned and/or licensed. The requirements are the same as for the assignment or licensing of copyright, as mentioned in 4.2 Alienable Rights.
Exceptions to copyright (see 7.1 Fair Use Doctrine/Fair Dealing) are applicable to neighbouring rights.
A copyright is infringed if a person without appropriate permission or a licence does anything that the owner of the copyright has an exclusive right to do.
This includes, when any person permits (for profit) any place to be used for the communication of the work to the public where such communication constitutes an infringement of the copyright in the work, unless they were not aware and had no reasonable ground to believe that such communication to the public would be an infringement of copyright.
It is also an infringement of copyright if any person:
The following do not constitute infringement:
Apart from the above, the following is a non-exhaustive list of defences that can be used while defending a claim of infringement:
Furthermore, in the case of criminal complaints, if the offence is not committed for commercial gain, the extent of the fine/imprisonment may be reduced.
Rights-holders have access to both civil and criminal remedies under the law to counter copyright infringement. Under civil remedies, the copyright owner can file a suit for infringement and seek both injunction and damages. Under criminal remedies, the rights-holders or the authorised representatives can file an official complaint to the local police authorities informing them of the infringement of their rights, or directly approach the magistrate to file a criminal complaint so that the competent court can direct the police authorities to investigate the matter further.
Additionally, the owner of the copyright or their duly authorised agent may give notice to the customs authorities to suspend the clearance of imported infringing copies of the work. In view of the above, criminal remedies can be considered an alternative to civil actions.
Infringement of copyright proceedings can be instituted before a district court, within the jurisdiction of which, the claimant:
In addition, every copyright infringement suit can be instituted in a court within the local limits of the jurisdiction of which:
In general, there are no special courts for copyright cases; these are heard by the commercial benches of the courts. In the Delhi High Court, special courts dealing with Intellectual Property cases hear copyright disputes.
Either the copyright holder or an exclusive licensee can sue for copyright infringement. An exclusive licensee can sue for violation of any rights that it holds by virtue of a licence from the original owner of the copyright. Furthermore, only an exclusive licensee or the copyright owner can institute a lawsuit for infringement.
In civil proceedings, the third parties can be injuncted from using the infringing material, and costs or damages can be awarded. In criminal proceedings, the infringers may be imprisoned and a fine may be imposed. See also 9.10 Remedies and Sanctions.
The Indian courts award ex parte ad interim injunctions in cases where there is an urgent need to restrain the act of infringement in question. In cases where temporary injunctions are granted, the trinity of a prima facie case, irreparable injury and balance of convenience needs to be assessed by the courts.
Expert evidence can be given on aspects of foreign law, science, art, identity, handwriting and fingerprints under Section 45 of the Evidence Act 1872. However, Indian courts generally do not demand any expert opinions in copyright infringement cases.
The Intellectual Property Rights (Imported Goods) Enforcement Rules, 2007, enable IP owners to enforce their rights at Indian borders. A notice can be given to the customs authorities to initiate action against importers of counterfeit goods. The period of protection available under customs is five years from the recordation of rights with the customs authorities or upon expiry of the validity of registration of the IP right, whichever is earlier. After five years have expired, the right-holder is required to furnish a fresh notice.
The Indian Copyright Act does not expressly specify the scope of exhaustion, but the Delhi High Court in John Wiley & Sons v Prahabhat Chander Kumar Jain (2010) held that the Act can only be taken to mean national exhaustion, thus making parallel imports to India illegal.
The remedies provided against infringement of copyright can be categorised as:
Copyright infringement can constitute an administrative or criminal offence and both administrative and criminal remedies are available to the aggrieved person. Under the administrative step of border enforcement, the copyright owner can seek prohibition of the importation of infringing materials.
Under criminal remedy, the rights-holders or their authorised representatives can file an official complaint with the local police authorities informing them of the infringement of their rights, or they can approach the magistrate directly and file a criminal complaint so that the competent court can direct the police authorities to investigate the matter further.
In a case where the first instance judgment is passed by a district court, an appeal may be instituted in the High Court. Furthermore, in cases where the first instance judgment is passed by a single judge of the High Court, an appeal may be brought before the Division Bench.
In cases of seizure and disposal of infringing copies, an aggrieved person may, within 30 days of the date of the order of the magistrate, file an appeal in the Court of Session.
The cost of litigation is recoverable from the defendants, and the Commercial Courts Act specifically provides the mechanism for payment of costs. However, recovery of costs depends upon several factors, such as the merits of the case, quantum of loss, and evidence submitted before the court, etc.
There is an alternative dispute resolution system in the form of mediation between the parties before the copyright infringement suit reaches the court. As per Section 12 of the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts (Amendment) Act, 2018, a commercial suit including a copyright infringement suit, having a value of INR300,000 (approximately USD4,150) or more, which does not contemplate any urgent interim relief, will not be instituted unless the plaintiff has exhausted the remedy of pre-institution mediation.
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This article aims to provide a detailed review of some of the current issues that would have a direct impact on the protection and enforcement of intellectual property (IP).
Personality Rights
Recently, the Honourable Delhi High Court passed an interim order to prevent the unlawful use of name, image, voice and likeness of the legendary Bollywood actor, Mr Amitabh Bachchan. The court also passed a John Doe order.
There have been multiple instances of infringement of personality rights of famous persons in India, in which courts have time and again upheld the sanctity of celebrity status.
The evergreen actor, Mr Shivaji Rao Gaikwad (famously known as Rajnikanth) received a favourable order from the Honourable Madras High Court in a case of infringement of celebrity rights, in which his alias name was used without his consent in the title of a film “Main Hoon Rajinikanth”. The court upheld the importance of protecting pseudonyms as a part of personality rights.
Additionally, in a suit initiated by Mr Arun Jaitley, he successfully received an injunction order against a domain name (www.arunjaitley.com) which was using his name, on the grounds of misuse of his well-known status.
In fact, Mr Amitabh Bachchan, along with Ms Jaya Bachchan, have also previously been victimised by false endorsements and unauthorised use of their personality by third parties. In a case against a jewellery brand using their respective identities without consent, it was held that their photographs cannot be misused for commercial gains, thereby permanently injuncting the advertisement.
Previously, Mr Daler Mehndi’s likeness and manner of dressing was identified as unique and protected against a third-party infringer.
The concept of privacy rights of a celebrity was explored further in a suit filed by Ms Phoolan Devi in a dispute against the movie Bandit Queen. A successful order was passed to ensure that she has the right to project her personality on screen in the manner she wishes.
In another example, the authors have also been protecting and enforcing rights against third parties for violating Michael Jackson’s image, likeness and manner of dressing.
Judgments of this nature are critical in ensuring menace of any third-party misuse are controlled.
Protection in Food Presentation
Appearance of dishes and food plating style is also among other aspects of trade dress that can be protected by restaurants if they have earned sufficient reputation to indicate the source of the dish. Whether presentation of food can be protected as a copyright as well, is a question yet to be decided, but there have been cases in other countries where restaurants have claimed exclusive rights on the appearance of their dishes and have tried to prevent third parties from doing the same. For example, a case involved trade dress infringement of Breakfast at Tiffany’s cupcake featuring vanilla cake, blue cream cheese frosting, and silver and white gems. Additionally, recipes may be protected as trade secrets, as they constitute business information that derive value from their secrecy. Currently, there is no specific law in India for trade secrets, but courts have upheld trade secrets protection under various statutes and common law actions based on principles of equity.
Enhancement of Stricter Penalty Under the Copyright Act
There is a strong need to enhance penalties and enhance criminal provisions in light of distribution of illegal copies through electronic means, which is negatively impacting the publication and content-centric industries. Many submissions to this effect have also been made to the government to have the legislation amended.
Counterfeiting and Intermediary Liability
Counterfeit is prevalent in abundance, but is most striking in the world of fashion. The small distinction between imitation and flattery is beginning to narrow. One effective anti-counterfeiting play is to make the intermediary liable. The most effective approach is to target the infrastructure and means used by counterfeiters to supply their products internationally. In this regard, counterfeiters often act through third parties that might not be aware that their services are used for illegal activities. Such third-party engagement renders the liability of intermediaries a cutting-edge matter in IP law worldwide. Intermediaries may include both principal groups: online – ie, e-commerce websites – and offline intermediaries.
Three years ago, Alibaba’s inaction dragged it to the court. Gucci and Yves Saint Laurent didn’t spare Alibaba, which had not been taking active steps to curtail the counterfeit menace on its website. The lawsuit cited, for example, an alleged fake Gucci bag offered for USD2 to USD5 each by a Chinese merchant to buyers seeking at least 2,000 units whereas the authentic Gucci bag retails for thousands of dollars.
One of the landmark cases on this front, where certain ground rules were put forth vis-à-vis liabilities of e-commerce platforms and exemptions thereof, was in fact, handled by Anand and Anand. This case was initiated by Christian Louboutin against the online marketplace platform www.darveys.com on which unauthorised and counterfeit products of the Louboutin brand were being sold. The Honourable Delhi High Court, in the matter Christian Louboutin Sas v Nakul Bajaj & Others on 2 November 2018, recognised the intermediary liability of such platforms in cases of counterfeiting, in line with the provisions of the Information Technology Act, and passed a favourable order in the name of Christian Louboutin. The court also laid down guidelines for e-marketplaces, such as disclosing information about sellers and showcasing approval of sale from brand owners, and put other allied checks in place to ensure the authenticity of products being sold on the platform concerned.
Likewise, take-down notices need to be strongly adhered to by the intermediaries in case a violation is brought to their attention.
To address the rampant issue of counterfeiting, India came up with the National IPR Policy, which also focuses on promotion and protection of IP.
Cultural Appropriation or Misappropriation and Protection of Traditional Cultural Expressions (TCE)
At least in the world of fashion, appropriation often takes place when a famous designer or fashion house, intentionally or unintentionally, takes elements from another culture and exploits them.
Gucci was called out for offering a floral embroidery organic linen kaftan, which looked a lot like a kurta and was being sold for thousands of dollars. Louis Vuitton was also called out for selling a Kaffiyeh-inspired scarf recently. Nick Jonas came under fire for wearing a Solapur Chadar-based jacket.
While borrowing from cultures is definitely a part of the creative process, when any brand or designer is inspired by traditional craftsmanship, the spirit of cultural appreciation must be championed. The author strongly believes that consent, compensation and credit go a long way in cultural appreciation.
Understanding of any culture must always precede commercial usage. This ensures accuracy in representing the specific culture and avoids hurting any cultural sentiments. Especially in cases of protected GI products coupled with the advent of the digital era, the rights of the registered proprietor must never be overlooked as it may land one in trouble for misrepresentation as well as misappropriation, or it might lead to bad publicity.
A culturally sensitive designer/brand acknowledges the heritage behind their designs and duly credits the culture bearer, both financially and otherwise. While borrowing of cultures is definitely a part of the creative process, one needs to do it in an authentic way rather than dominating the cultural community. The best practice to ensure this would be to have permission before using any cultural element, be it a motif, silhouette, etc, as part of a design/collection.
In India, a recently released movie, Kantaara, had a central theme of Daiva Narthakas and Bhoota Kola. Bhoota Kola is a unique manner of worshipping and Davis Narthakas are the artists. The state government of Karnataka, to ensure that the practice of Bhoota Kola remained prominent, announced an allowance for the Daiva Narthakas in the state.
Dichotomy Between Design and Copyright Law in India
A very interesting legal technicality exists in India between the protection provided by design and copyright legislation. Any article that has the capability of securing a registration under design law, and of which 50 copies are sold, loses its ability to protect the underlying work under copyright and design law.
In the author’s assessment, this dichotomy needs to be resolved and to this effect, many submissions have been made to the relevant bodies in India. In fact, Anand and Anand is currently handling a writ petition filed in the Honourable Supreme Court of India to address this.
A change in the current legislative provisions would very strongly secure the fashion designers and provide them the due protection their creative work deserves.
Damages Culture
This recent trend in the industry in India is one to watch out for. Previously, the quantum of damages was negligible, but the trend has changed in the last decade. Courts are more encouraged to reward damages to aggrieved parties, paving the way for a more innovation-led ecosystem in the country.
In some cases, bank guarantees are being made along with damages. Moreover, there are examples of damages beyond statutory damages by exemplary means.
Metaverse
A metaverse, built on a blockchain network, offers an open and decentralised ecosystem, useful in creating a transparent, tamper-proof, and secure infrastructure. Moreover, blockchain helps regulate digital collectability of assets, governance, digital proof of ownership, transferring value using crypto and more.
Recognising the importance of protecting IP in the metaverse, many companies globally and in India, have gone ahead and protected their IP attached to it. Protection is important not just for securing your own rights but also to ensure that infringements in the metaverse can be addressed based on the strength and protection in the IP. Licensing opportunities for IP and creation of Terms of Use policies are again IP dependant.
Non-fungible Tokens (NFTs)
Twitter’s CEO Jack Dorsey recently sold an NFT of his first tweet for approximately USD2.5 million. Likewise, Mr Amitabh Bachchan’s NFT collection was sold for over INR70 million. NFTs have an intricate relationship with IP as, in a transaction, it becomes imperative to structure sale documents to ensure IP is retained by the owner while parting with the NFT of the corresponding IP.
IP enforcement in NFTs is also a reality now with brands such as Hermes and Nike filing suits to protect and enforce their rights in this digital space. The Hermes lawsuit was the first lawsuit in the world which focused on protection of real-world rights and its extension into a virtual world. The lawsuit is currently pending but the trend clearly suggests an exploration into a previously unknown territory.
Influencer Guidelines
Earlier in 2022, consumer rights were allowed to be statutorily protected against false or misleading advertisements, on the basis of the Consumer Protection Act 2019. The Act indicated that making false or misleading advertisements would be considered as an unfair trade practice. To this effect, the Act mandated the establishment of a Central Consumer Protection Authority (CCPA) to oversee the issue of false or misleading advertisements and advertisements are nothing but IP.
As part of this, CCPA then notified detailed guidelines titled Guidelines on Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022.
The Guidelines, in order to keep a check on misleading or false advertising practices, allowed for levying penalties to the tune of INR10 million on manufacturers, advertisers and endorsers. In cases of subsequent violations, the penalty could go up to INR5 million. The Guidelines also indicate that an endorser can be prohibited from making advertisements for up to one year, which can extend to three years if there is subsequent violation.
Recently, the Department of Consumer Affairs notified guidelines that detail the diligence that celebrities have to exercise while endorsing brands. Previously, the Consumer Protection Act had included clauses which made celebrities liable for misleading claims.
The new guidelines indicate that celebrities are required to now put their money where their mouth is, implying that celebrities should endorse advertisements which are a reasonable reflection of their opinion.
Now the Indian government has announced that it is creating guidelines to rein in social media influencers to keep misleading advertisements in check. For example, in the US, the Federal Trade Commission has already released guidelines for social media influencers. One of the prominent expected changes in India is that social media influencers will now have to mandatorily disclose if the promotions are sponsored. In the US, the guidelines go a step further and the influencers are also mandated to declare if, over and above any monetary exchange, the influencer has any “material connection” with the brand/product – eg, if the brand has gifted any discounted products or other perks that may incentivise mentions or promotions.
The Competition and Markets Authority (CMA) in the United Kingdom also has such guidelines in place to curb instances of misleading advertising by influencers.
Data Protection
The Information Technology Act 2000 was not able to keep up with the advancement in technology. Data protection is becoming increasingly complicated as the number of devices required to monitor and protect data are expanding daily. Data protection is the process of securing digital information while keeping data usable for business purposes without trading customer or end-user privacy.
India does not have any specific legislation enacted for data protection. In 2020, data breaches resulted mainly due to inadequate data protection measures being in place. Amazon’s Alexa feature, which allows it to listen to conversations, and the fact that Google can access the healthcare information of millions of people, has alarmed the public.
Since the European Union’s General Data Protection Regulation 2018 was enforced, the Digital Personal Data Protection Bill 2022 was tabled in Parliament. The Bill prescribes compliance requirements for all forms of personal data, broadens the rights given to individuals, introduces a central data protection regulator, as well as institutes data localisation requirements for certain forms of sensitive data.
Online Gaming
A fantasy sport is a type of online game where participants assemble imaginary or virtual teams of real players of a professional sport. These teams compete based on the statistical performance of those players’ players in actual games.
Online fantasy sports gaming is one of the fastest-growing sectors in India today. The proliferation of mobile internet in India, coupled with higher disposable incomes, better 4G speeds and more affordable phones, have enabled people to access all kinds of digital games online. An added advantage is that gaming has been combined with earnings. In fact, the government has recently released draft guidelines for online games.
As a digital platform, online games promote tech investment and entrepreneurship and open up attractive business opportunities. The number of operators is rising, which is not surprising considering there is a large consumer market; users with growing purchasing power and a large pool of young, skilled tech talent.
Setting up a portal, the technique of playing these games, branding, software interface, commercialisation opportunities etc, are all interlaced with IP.
Open-Source IP
Nearly all companies use some basic version of open-source software, which is simply software available in the public domain to be used and modified as required. In many cases of open-source software usage, there may also be licence compliance requirements. Simply put, anyone is free to use the software as they please and modify it, but it is subject to certain licence usage requirements.
Collaborative IP
Collaboration and co-created IP offers complementary advantages and enables the creation of a more foundationally strong product when it is created and married on the basis of different strengths and ideas. Each of these contributions offered by multiple people in the creation of the product is their respective IP. In such cases, understandings and agreements need to be structured clearly so that each is able to derive benefit of their own portion of the creativity. Collaborative IP also attracts investments and if the legal understanding between the parties is not captured or structured well, it can have repercussions on investments and valuations, including at the time the parties decide to part ways.
Strong Contracts to Ensure Clear Assignments
It recently came to light that Taylor Swift lost rights to all her songs with a particular record label, as rights to the masters were also assigned in favour of the record label. It thus becomes imperative for all content creators to ensure agreements on assignments are crystal clear.
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