DIVYA EXPORTS Vs. SHALIMAR VIDEO COMPANY

JUDGEMENT

(1.) This appeal is directed against the judgment of the learned Single Judge of the Andhra Pradesh High Court whereby he allowed the appeal filed by respondent No.1 and decreed the suit filed by the said respondent for grant of a declaration that it is having exclusive worldwide video rights of VCD/DVD and other formats of video rights in respect of 15 Telugu films for which it had entered into an agreement dated 27.8.2001 with M. Srinivasa Rao and also for restraining the appellant and respondent Nos.2 and 3 from producing or selling VCDs/DVDs or any other video format of those films in any form of exploitation.

(2.) M/s. Vijaya Production Private Limited (hereinafter referred to as "the Producer") produced 15 Telugu films. By an agreement dated 28.9.1987, the Producer granted the sole and exclusive video rights of the films to M/s. Jyothi Video for a period of seven years. During the currency of that agreement, the Producer gifted the films to M/s. Nagireddy Charities (respondent No.3) represented by its Managing Trustee, Shri B. Nagireddy. Respondent No.3 entered into an agreement of lease with respondent No.2- M/s. Vijaya Pictures whereby the rights of theatrical and non-theatrical distribution, exhibition and exploitation including video and TV rights were given to respondent No.2 for the areas of Andhra and Nizam for a period of 20 years commencing from 1.1.1975 for a consideration of Rs.20 lakhs. By another agreement dated 25.6.1990 (Exhibit A-4) the term of agreement dated 10.1.1975 was extended by 70 years with effect from 1.1.1995. The relevant portions of that agreement are extracted below:

(3.) A third agreement dated 11.12.1995 (Exhibit A-5) was entered into between respondent Nos.3 and 2 whereby and whereunder copyright for broadcasting of films through satellites, cassettes, disc, cable, wire, wireless or any other system including its transmission through cable system without restriction of geographical areas was assigned to respondent No.2 for a sum of Rs.8 lakhs. The relevant portions of the third agreement are also extracted below: