ZEE ENTERTAINMENT ENTERPRISES LTD. Vs. SAREGAMA INDIA LTD.

JUDGEMENT

(1.) The appellant obtained a license from the respondent commencement of rights where under was with effect from Jan. 01, 2014. Agreed license fee in sum of Rs. 2.15 crores was paid. The license permitted appellant to use the repertoire of the respondent. The agreement was novated and the license fee was increased to Rs. 3.17 crores. Upon the expiry of the period of the license, the parties negotiated. Respondent demanded Rs. 3.5 crores per annum as license fee. As per the appellant it had acquired copyright including negative rights from the producers/rights holders in certain works essentially pertaining to cinematograph films and therefore the respondent could not include said works for purposes of computing the license fee.

(2.) On Dec. 30, 2016, the respondent served a notice upon the appellant threatening to take action for infringing copyrighted works of the respondent without a license. On Jan. 02, 2017 the appellant filed a suit for declaration and on the very first date when the suit was listed i.e. Jan. 03, 2017, counsel for the respondent appeared and informed the Court that the appellant was using the repertoire of the respondent under a license in the past and could not continue to use the same without paying any license fee and that the respondent would be filing a suit for injunction. Vide order dated Jan. 03, 2017, a protem ad-interim order was passed requiring appellant to pay Rs. 2 crores to the respondent as license fee and deposit Rs. 1.5 cores in this Court and subject thereto the appellant could continue its activities.

(3.) The respondent thereafter filed a suit for injunction to restrain the appellant from using it repertoire without obtaining a license.