Unauthorized ‘original’ imported DVDs not for hire

In an order passed on 13 April by Delhi High Court in Warner Bros Entertainment Inc and Ors v Mr Santosh VG, the issues of copyright infringement in cinematographic works and the unauthorized importation of copies of such works were addressed.

The court observed that the right to offer copies of a cinematographic work on a rental basis (i.e. through the rental of original DVDs) rests with the owner of the copyright. Therefore, a person intending to offer copies of such works on a rental basis must procure a proper licence from the owner of copyright in the work. Failure to do so would constitute copyright infringement.

The court also considered the issue of the “exhaustion of rights” (where an IP owner loses or exhausts certain rights after the first use of the subject matter), and noted that the principle of exhaustion would depend on the facts and circumstances of each case and the legislation in question. The court also considered provisions relating to parallel importation and observed that although there are enabling provisions for such importing under the Patents Act, 1970, and the Trade Marks Act, 1999, parallel imports are explicitly prohibited under the Copyright Act, 1957.

The legislative and regulatory update is compiled by Nishith Desai Associates, a Mumbai-based law firm. The authors can be contacted at nishith@nishithdesai.com. Readers should not act on the basis of this information without seeking professional legal advice.