Private Care for Dignitaries in India
Private Care for Dignitaries in India
Media And
Entertainment Law
INDIA
Media and
Entertainment Law
EDITION 5
Contributing Editor
Benjamin E Marks
Weil Gotshal & Manges LLP
In-Depth: Media and Entertainment Law (formerly The Media and Entertainment Law Review)
is a practical overview of the legal and regulatory frameworks governing the media and
entertainment industry – including print, broadcast and online – in major jurisdictions
worldwide. With a focus on prominent recent trends and developments, it examines issues
including free speech and media freedom; IP rights; competition and consumer rights;
common contractual disputes; and much more.
Explore on Lexology
India
Tanu Banerjee and Ishan Johri
Khaitan & Co
Summary
INTRODUCTION
YEAR IN REVIEW
INTELLECTUAL PROPERTY
DIGITAL CONTENT
CONTRACTUAL DISPUTES
ENDNOTES
Introduction
India is one of many of the epicentres of media and entertainment activities in the world.
Content is created and made available to people in diverse forms, languages and media.
On an aggregate basis, the Indian media and entertainment industry is projected to grow
[2]
at a rate of 11.5 per cent in 2023 to reach US$29.2 billion.
[3]
Several factors such as low pricing for mobile internet services, a large internet user
[4]
base and a government-led push towards adoption of technology by the masses
have enabled India to become a large market for consumption of digital content and
entertainment services.
With the recent infusion of artificial intelligence (AI)-based technology in the global market,
the global media and entertainment landscape is expected to undergo a shift in content
creation and consumption.
Changes in government policy towards regulation of technology have tracked these recent
technological advances. Over the past year, the government of India (GOI) has brought
significant changes in laws including:
1. the Digital Personal Data Protection Act 2023 (Indian Data Protection Law) for
regulation of collection, processing, and transfer of digital personal data;
2. the Information Technology (Intermediary Guidelines and Digital Media Ethics
Code) 2021 (IT Rules 2021) to regulate streaming platforms, social media
intermediaries and online gaming platforms; and
3. amendments to the Cinematograph Act 1952 to safeguard against film piracy and
prescribe certification of films.
The Securities and Exchange Board of India (SEBI) has sought to regulate the activities
[5]
of 'financial influencers'. Similarly, the Ministry of Consumer Affairs has commenced
consultation with stakeholders on 'Guidelines on Prevention and Regulation of Dark
Patterns', to regulate user interface or user experience design choices that may mislead
[6]
consumers.
The GOI has also initiated consultations to replace the Information Technology Act 2000
(IT Act) with the Digital India Act (DIA). The DIA would overhaul the technology regulation
framework and would focus on intermediary liability, regulation of activities on the internet
through the perspective of user-harm, regulation of AI and providing users with digital
[7]
rights.
Year in review
As noted above, the media and entertainment sector is reviving and eclipsing pre-covid
levels. Along with this, the industry is undergoing a dynamic shift towards the digital
medium. The industry appears to be moving towards general consolidation, with mergers
and acquisitions, such as the amalgamation of Zee Entertainment Enterprises Limited with
Culver Max Entertainment Limited, as mentioned above.
In the music industry, a key dispute arose between Recorded Music Performance Limited
(RMPL) and Phonographic Performance Limited (PPL). While PPL's application to renew
its status as a registered copyright society was pending, RMPL was granted registration.
Given that the Copyright Act does not ordinarily permit more than one society to be
registered for administering the same category of works – in this case, sound recordings
– both PPL and RMPL may not be granted registration. The court has currently ordered
the GOI to re-look at PPL's application while permitting RMPL to act as a copyright society
until the dispute is resolved.
In the film industry, recognising the menace of rampant piracy, the government introduced
more stringent regulation of piracy under the Cinematograph Act. Further, the emergence
of AI has posed several challenges in relation to personality rights because of the increased
prevalence of illegal activities such as deepfakes. Such deepfakes are also being used
to incite violence and steer political discourse. Notably, two Indian actors have secured
favourable omnibus injunction orders against the use of their name, persona, likeness,
[8]
voice and eponymous catchphrase.
One of the most notable developments in the media and entertainment sector has been in
the field of online gaming. While on the one hand real money online games were granted
legitimacy as a result of the recent amendment to the IT Rules 2021 regulating online
gaming intermediaries, the question around legality of games of skill versus games of
chance across various Indian states remains unaddressed. Further, the GST council's
recommendation to impose a tax on the full bet value (instead of the platform fee) and
the imposition of 30 per cent tax deducted at source on the winnings of users has come
as a huge blow to the gaming industry in India.
i Print media
Under the Foreign Exchange Management (Non-Debt Instruments) Rules 2019 notified
under the Foreign Exchange Management Act 2000 (Exchange Control Laws), foreign
investment in the print media sector has been capped at 26 per cent through the
GOI-approval route where investment is made in an entity publishing newspapers,
magazines, or any other periodicals (collectively, periodicals) which (1) deal with news and
current affairs content; and (2) are Indian editions of foreign magazines dealing with news
and current affairs content.
However, 100 per cent foreign investment is permitted through the GOI approval route for
any periodicals which are in the nature of: (1) scientific and technical magazines, journals
or periodicals (technical periodicals); or (2) facsimile editions of foreign newspapers.
Exchange Control Laws also stipulate that foreign investment in publication of Technical
periodicals requires compliance with guidelines issued by the Ministry of Information and
[9]
Broadcasting (MIB) for technical periodicals.
Under the Press and Registration of Books Act 1867 (PRB Act) and the Registration of
Newspapers (Central) Rules 1956, every printer and publisher of periodicals is required
to (1) register, (2) make annual filings and (3) provide declarations as to the title,
language, periodicity, ownership and place of printing of periodicals, to the Press Registrar,
established under the PRB Act. The maximum monetary penalty for non-compliance of
various provisions of the PRB Act is 20,000 rupees or imprisonment of six months, or both.
The Press and Registration of Periodicals Bill 2023 has been tabled before the Indian
Parliament to replace the PRB Act, which, inter alia, aims to streamline the process of
registration and administration of registered periodicals.
The Press Council of India (PCI), established under the Press Council of India Act 1978,
governs the conduct and functioning of periodicals, news agencies, journalists and other
print media entities. The PCI has notified the Norms of Journalistic Conduct 2022 (Norms
of Journalistic Conduct), which set out:
1. basic ethical principles for reporting of current events including ensuring news is:
• not baseless;
• misleading; and
• backed by evidence;
The PCI is empowered to initiate inquiries against periodicals or news agencies for violation
[11]
of standards of journalistic ethics or offence to public taste. The PCI can also censure
a periodical or news agency or require the relevant periodical to publish the particulars
[12]
relating to the PCI's inquiries.
Self-regulation
ii Broadcast media
The broadcasting sector is regulated by the (a) MIB; and (b) Telecom Regulatory Authority
of India (TRAI). The MIB regulates broadcasters and cable service providers, content,
uplinking and downlinking of television channels, and provides compliance requirements
for entities with foreign investment in the broadcasting sector. The TRAI makes regulations
on quality of service, revenue sharing among service providers, and inter-connect
agreements by broadcasters and distributors.
The key Regulations for broadcasting on television are the Cable Television Networks
Act 1995 (Cable TV Act), the Policy Guidelines for Uplinking and Downlinking of Satellite
[13]
Television Channels in India 2022 (Uplinking and Downlinking Guidelines 2022) and
medium-agnostic laws as set out in Section II.iv.
The maximum foreign investment permitted in the terrestrial broadcasting and radio
broadcasting sector is 49 per cent under the GOI-approval route and requires compliance
with terms and conditions specified by the MIB for the setting up of radio stations in India.
Foreign investment in entities engaged in: (1) the uplinking of news and current affairs
television channels has been capped at 49 per cent through the GOI-approval route; and
(2) the uplinking of non-news and current affairs television channels and downlinking of
television channels is allowed up to 100 per cent through the automatic route.
Additionally, foreign investment in the broadcasting sector requires compliance with the
additional conditions, which, inter alia, include:
2. a majority of the board of directors and certain key personnel being citizens of India;
3. restrictions on transfer of subscribers' databases to persons and places outside
India; and
4. providing the necessary equipment for monitoring the broadcaster's activities to the
[14]
governmental authorities.
Television broadcasting
The Cable TV Act provides rules pertaining to registration of cable television network
operators, mandatory transmission of certain programmes and programme and advertising
content under the Cable Television Network Rules 1994 (Programme Code, Advertising
[15]
Code).
Finally, the Advertising Code also imposes limitations on the length and placement of
advertisements in programmes.
The Uplinking and Downlinking Guidelines 2022 lay down registration and permission
requirements for transmission of a television channel to and from satellites, in and outside
India. The Guidelines also:
1. create a distinction between 'news channels' and 'non-news channels' and prescribe
differential obligations for their registration and functioning; and
2. provide for penalties and deterring consequences in case a television channel is
found to have broadcast content in violation of the Programme or Advertising Code,
including:
Self-regulation
Radio broadcasting
The radio broadcasting sector is regulated under the Indian Telegraph Act 1888, the Indian
Wireless Telegraph Act 1933, and various policies of the MIB. Under the FM Phase-III
[18]
Policy, private FM radio stations are prohibited from transmitting news and current affairs
content, except news bulletins of the All India Radio. However, the following categories
of programmes are permitted: sporting events, traffic, weather, cultural events, festivals,
public announcements pertaining to civic amenities and natural calamities provided by
local administration.
Private FM radio stations are required to comply with the 'Advertising Code of Prasar
[19]
Bharati' for all advertisements carried on the respective radio channel, which, inter alia,
prohibits the transmission of advertisements containing unlawful content, advertisements
presented as news and misleading advertisements.
As per the Exchange Control Laws read with Press Note No. 4 (2019 series) (PN 4) issued
by the Department for Promotion of Industry and Internal Trade (DPIIT), foreign investment
in uploading and streaming of news and current affairs through digital media is limited to
26 per cent under the GOI-approval route.
Per a clarification issued by the DPIIT on 16 October 2020, the restriction under PN 4
applies to the following entities:
The DPIIT subsequently also clarified that OTT platforms which merely host the digital feed
of a television news channel do not fall within the ambit of the restriction.
Activities on the internet are regulated by the Ministry of Electronics and Information
Technology (MEITY) and the MIB under the IT Act and the rules made thereunder. The
IT Act is applicable to persons and activities outside India if the activity involves a person
[20]
or 'computer resource' situated in India. The IT Rules 2021 set out the compliance and
regulatory framework for intermediaries (including social media intermediaries, significant
social media intermediaries and online gaming intermediaries), publishers of news and
current affairs content and publishers of online curated content (i.e., over-the-top (OTT)
content platforms).
Under the IT Act, any platform that receives, stores or transmits electronic messages
or provides services in respect of such messages on behalf of its users qualifies as an
intermediary. Per Section 79 of the IT Act, intermediaries are entitled to safe harbour (i.e.,
exemption from liability for content made available through the intermediary) provided that:
(1) the function of the intermediary is limited to providing access to the content shared
by third parties; (2) the intermediary does not initiate, select the receiver of or modify
the information during transmission; and (3) the intermediary undertakes due diligence
prescribed by the GOI.
Under the IT Rules 2021, an intermediary is required to comply with, inter alia, the following
due diligence requirements:
1. prominently publishing its privacy policy, rules and regulations and user agreements
(collectively, 'policies') on the platform;
2. informing users and causing users not to host, display or publish information that:
3. informing users at least once a year that it has a right to terminate access to the
platform or remove non-compliant information upon non-compliance with the terms
of the platform; and
4. publishing details of the grievance redressal officer appointed by the intermediary
along with the grievance redressal mechanism.
Further, significant social media intermediaries (i.e., social media intermediaries with
more than 50 million registered users) are required to also appoint a chief compliance
officer, nodal contact person and resident grievance officer who should be employees and
residents of India and comply with certain additional due diligence requirements.
Compliance for publishers of news and current affairs and publishers of online curated
content
The IT Rules 2021 prescribe a three-tier grievance redressal mechanism for redressal
of user grievances against publishers of online curated content (content publishers)
and publishers of news and current affairs content (news publishers) involving: (1)
self-regulation by the publisher; (2) redressal of grievances by a self-regulatory body; and
(3) redressal by an inter-departmental committee constituted by the MIB. Accordingly,
publishers are also required to appoint a grievance officer and become members of a
self-regulatory body.
Code of ethics
Content publishers are, inter alia, required to classify all content made available on the
platform into five categories:
This classification may be made based on parameters such as theme, content, tone,
having regard to depiction of issues such as discrimination, substance abuse, use of liquor,
tobacco etc.
News publishers are required to comply with the Norms of Journalistic Conduct issued
by the Press Council of India and the Programme Code, prescribed under the Cable TV
Rules.
However, the Bombay High Court and Madras High Court have issued interim orders
restricting the operation of Part III of the IT Rules 2021 which mandate adherence to the
[21]
'Code of Ethics' and the setting-up of the three-tier grievance redressal structure. That
said, these cases are at their hearing stage, and are subject to final decisions of the courts
in India.
Under the Information Technology (Procedure and Safeguards for Blocking Access of
Information by Public) Rules 2009 (Blocking Rules), the GOI has a right to remove or block
access to content that that threatens:
Under the IT Rules 2021, an online game is a game accessible on the internet via an
intermediary, and is further classified as:
1. an online real money game (i.e., where a user deposits cash with the expectation
of winning a prize);
2. a permissible online game (i.e., a permissible online real money game or a game
that is not an online real money game); and
3. a permissible online real money game (i.e., an online game verified by an online
gaming self-regulatory body).
Online gaming intermediaries are only permitted to offer permissible online real money
games.
Every online real money game is required to be registered with a self-regulatory body
formed under the IT Rules 2021. In addition to the due diligence requirements required to
be complied with by all intermediaries, online gaming intermediaries are also required to:
Fact-checking body
The IT Rules 2021 empower the MEITY to constitute a fact-checking body to verify all
information pertaining to the GOI on social media platforms. In the event content identified
as fake by the committee is reported to the intermediary and the relevant intermediary fails
to take down such content, it may lose its safe harbour protection. However, at the time of
writing, the MEITY has not constituted the fact-checking body.
Other Indian legislation also applies to the media and entertainment sector regardless of
the medium of distribution of content. For example, the Consumer Protection Act 2019
(CPA 2019), the Indian Penal Code 1870 (IPC), the Indecent Representation of Women Act
1986 (Representation of Women Act), the Protection of Children from Sexual Offences Act
(POCSO Act) and legislation governing advertisements or depiction of specific products
[22]
and themes in any content.
In respect of advertising content, the ASCI Code along with various guidelines are
applicable to members of the Advertising Standards Council of India (ASCI). However, the
ASCI Code and guidelines reflect broad industry practice. The ASCI is a self-regulatory
organisation comprising stakeholders from the advertising sector such as advertisers,
agencies and publishers. The ASCI Code is applicable to all members and comprises
basic principles which relate to truthful and honest representation in advertisements,
non-offensiveness of advertising content, prohibition against depiction of harmful products
and situations, and competitive fairness in advertising. Apart from this, the ASCI Code
comprises guidelines for advertisements relating to specific categories such as brand
extensions, foods and beverages, endorsements by celebrities and influencers, advertising
of real money games and virtual digital assets. ASCI operates the Consumer Complaints
Council (CCC), a grievance redressal mechanism which handles complaints from the
public, suo motu, and intra-industry disputes. Where the CCC finds a violation of the ASCI
Code, the CCC has the power to issue recommendations for modifications or withdrawal
[23]
of claims made in the advertisement.
Under the CPA 2019, any unfair trade practice comprising making false or misleading
representations as to the quality, standard, condition, sponsorship or usefulness of goods
or services, or any misleading advertisement or endorsement is prohibited and punishable.
Under the IPC, obscenity, acts in relation to racial, religious or gender discrimination,
violence, abetment of suicide, and defamation are punishable. Under the Representation
[24]
of Women Act, depiction of women in an indecent or derogatory manner is punishable.
Under the POCSO Act, anybody who uses a child (anybody below the age of 18 years) in
any form of media for purposes of sexual gratification by representation of sexual organs
of a child, usage of a child engaged in real or simulated sexual acts or indecent or obscene
[25]
representation of a child, or both, is punishable.
The right to freedom of speech and expression is guaranteed to all Indian citizens as a
fundamental right under Article 19(1)(a) of the Constitution of India. However, freedom of
speech and expression is subject to reasonable restrictions set out in Article 19(2), which
are:
These grounds serve as the basis for judicial interpretation of all legislation and subordinate
legislation notified by the GOI which aim at ensuring that the right of freedom of speech
and expression is exercised within the aforesaid framework.
While 'speech' is not classified in further categories under any Indian statutes, Indian
courts have analysed the concept of 'commercial speech'. Commercial speech is generally
understood by Indian courts as speech which proposes a commercial transaction or is an
expression of economic interest of a speaker to its audience. The Supreme Court stated
[26]
in the case of Tata Press v. MTNL, that advertisements and 'commercial speech' is also
[27]
protected under Article 19(1)(a) of the Constitution of India. As such, commercial speech
or advertisements are also subject to the same restrictions as set out in Article 19(2) of
the Constitution of India.
ii Hate speech
While Indian laws do not specifically define hate speech, certain provisions of the IPC can
be invoked when dealing with cases of hate speech. The IPC prescribes punishment for:
1. deliberate and malicious acts, intended to outrage religious feelings of any class;
2.
uttering, words, etc, with deliberate intent to wound the religious feelings of any
person;
3. promoting enmity between different groups on grounds of, inter alia, religion, race,
place of birth, residence, language, and doing acts prejudicial to maintenance of
harmony;
4. making any imputations, assertions, pleas, publications that are prejudicial to
national integration; and
5. publishing, making or circulating any rumor with an intent to cause mutiny, fear or
alarm to the public or any section or society inducing a person to commit an offence
or inciting any community to commit an offence against another community.
Further, the Supreme Court of India has recently mandated the police forces of all Indian
states to suo motu register first information reports in hate speech cases attracting offences
under Section 153A, 153B, 295A and 505 of the IPC, even if no complaints are forthcoming.
iii Newsgathering
As stated above, the Norms of Journalistic Conduct govern key aspects of newsgathering
and reporting. In respect of payment of sources, the Norms of Journalistic Conduct prohibit
payment or material rewards to sources.
There are no special exceptions given to journalists and news agencies for trespass,-
[28]
secret recording or electronic eavesdropping, or unlawfully obtained information.
[29]
Furthermore, the Supreme Court of India, in RM Malkani v. State of Maharashtra, stated
that evidence is admissible in a court of law, even if it is obtained illegally, unless the judge
in their discretion considers such evidence as inadmissible on the grounds of unfairness
[30]
to the accused. The Delhi High Court in the case of RK Anand v. Registrar, upheld the
legitimacy of sting operations to expose corruption among public officials by journalists.
The Right to Information Act (RTI Act) provides for the right to all Indian citizens to
seek information such as records, documents, memos, emails, opinions, advice, reports,
samples, models on all governmental records from any public authority. Under the RTI Act,
public authority is understood to be any authority or body or institution of self-government
established: (1) under the Constitution of India; (2) under a law made by the Indian
Parliament; (3) under a law made by the state legislature; or (4) by a notification or
order passed by the appropriate governmental authority. Bodies owned, controlled or
substantially financed by the government, and any non-government organisation financed
by the government fall within the purview of a 'public authority'.
However, under the RTI Act a public authority can refuse to provide information if such
action:
v Protection of sources
While there are no legally enumerated rights, privileges or duties to protect sources in India,
the Whistleblower Protection Act 2014 (Whistleblower's Act) protects persons disclosing
corruption, wilful misuse of power or discretion against any public servant. The disclosure
is required to be made before a 'competent authority' and such competent authority would
conduct an inquiry as per Section 5 of the Whistleblower's Act. The act also provides for
safeguards against victimisation, disclosure of identity of the whistleblower, and witness
protection. The Norms of Journalistic Conduct set out an exception to the disclosure of
sources in cases of 'serious allegations where matter is related to national interest and
[31]
security'.
[32]
In Jai Parkash Aggarwal v. Vishambhar Dutt Sharma, it was held that while 'journalists
or the information media have no absolute immunity or obligation to disclose their source
of information in court . . . before the Court directs the disclosure of source it must satisfy
itself that it is in the nature of justice and is not against the public interest'. In the same
vein, a court in Delhi recently gave an order to the effect that journalists are not exempt
[33]
from disclosing their sources to investigating agencies of the GOI.
A wide variety of legal remedies are available to persons to initiate private actions against
publication. Under the IPC, defamation is a punishable offence. The essentials for proving
a claim for defamation include: (1) publication of the statement; (2) the statement must be
defamatory; and (3) the statement must refer to the complainant or plaintiff. The punishment
for defamation, publishing and sale of defamatory material of imprisonment up to two years,
a fine or both. However, defamation can be pursued as a civil remedy under common law
for a claim for damages as well. Under the IPC, exceptions to the crime of defamation as
follows:
In cases for civil defamation in India, while the amount of damages depends on the
individual facts of each case, we have noted defamation cases being filed for up to 10
billion rupees. In some cases, the Supreme Court has also directed an entity alleged of
defamation to deposit as much as 20 million rupees in a 1 billion rupees defamation case
[34]
before admitting the case on appeal. Further, recently, the Delhi High Court awarded a
[35]
sum of 20 million rupees as damages in a defamation case.
The right to privacy has been read as a fundamental right under Article 21 of the
Constitution of India in KS Puttaswamy v. Union of India. Further, the IT Act criminalises
the violation of privacy by way of non-consensual publishing or transmission of the image
of a private area of a person and lays down a punishment of three years, fine up to 300,000
rupees, or both. As stated above, under the IT Rules 2021, intermediaries are under an
obligation to take-down and prohibit the access to content which is invasive of a person's
privacy within 72 hours of reporting thereof to the intermediary.
Similarly, private action may also comprise a suit for disparagement under common law or
under the Trade Marks Act 1999 (TMA). Entities often engage in comparative advertising
that involves comparison among two or more competitor products or services. However,
Indian courts have held that entities cannot state that a competitor's products or services
[36]
are bad while saying that their own products or services are better, undervalue the
[37]
products or services of a competitor, or disparage a competitor's products or services
[38]
as unsafe. The CPA 2019 and the Misleading Advertisement Guidelines, the ASCI Code
and the TMA provide for guidance on how such comparative claims can be made.
Under the Blocking Rules, the GOI may, through a designated officer, direct the take
down of information which is in contravention of law under the grounds outlined under
Article 19(2) of the Constitution of India. Such orders are also made for the protection of
children; for example, where child sexual abuse material is shared on the internet. The GOI
has directed blocking of accounts on platforms such as YouTube and Twitter which were
[39]
accused of sharing fake news and misinformation. In the case where Twitter challenged
such orders, the matter was decided by the Karnataka High Court in favour of the GOI.-
[40]
Further, the GOI has directed blocking of applications having off-shore links which
were operating in sectors requiring approvals from regulators or which were engaged in
[41]
unauthorised cross-border sharing of personal data of Indians.
Intellectual property
The Copyright Act 1957 (Copyright Act) governs copyright law in India. As per the Copyright
Act, copyright subsists in all published and unpublished dramatic work, artistic work, literary
work, musical work, sound recordings and cinematograph films. Registration of copyright
is not mandatory under Indian laws. While the Copyright Act follows the basic framework
of the Berne Convention, the duration of protection of dramatic work, artistic work, literary
work, musical work, granted under the Copyright Act (i.e., 60 years after the death of the
author) differs from that granted under the Berne Convention (i.e., 50 years after the death
of the author).
The Copyright Act provides an economic right to the author or owner of a work, to
reproduce the work, to issue copies, to perform or communicate it to the public, to make
any cinematograph film or sound recording or to make any adaptation or translation of
the work. The Copyright Act also provides moral rights to the author such as: (1) to claim
authorship of the work; (2) to protect one's reputation; and (3) to not have a work falsely
attributed to oneself.
Courts in India as well as the relevant governmental authorities issued several blocking
orders against websites illegally streaming or making available copyrighted content that led
to a loss of revenue for rights holders. Courts have relied on dynamic injunctions, whereby
additional blocking orders can be passed against new infringing websites and to catch
repeat infringers. This is particularly useful in the context of illegal streaming of live events
such as sporting events.
ii Personality rights
While personality rights are not specifically recognised in any statute in India, courts in
India have recognised personality and celebrity rights in myriad judgments. In the case of
[42]
Titan Industries v. Ramkumar Jewellers, the Delhi High Court held that each individual
has a right to determine how the individual's identity is utilised for commercial purposes.
Further, the Delhi High Court identified two prongs to test whether such rights can be
enforced: (1) the plaintiff should own an enforceable right in the identity or persona of a
human being (i.e., the plaintiff should be able to prove they have a proprietary interest in the
profitability of his public reputation or persona); and (2) the plaintiff should be identifiable
from the unauthorised use. Courts have recognised celebrities as 'famous people' who
may be known about or talked about. Personality rights are also accorded only to living
individuals and are not transferred to heirs or relatives upon the death of an individual.
In a recent judgment relating to personality rights, the Delhi High Court held that the use
of cricketers' images through publicly available information and creative artwork for the
creation of non-fungible tokens would not amount to a violation of personality rights given
that 'using celebrity names and images for purposes such as satire, parody and art fell
within freedom of speech and expression under the Indian Constitution and did not violate
[43]
the right of publicity'.
Courts in India have held that the 'hot news' doctrine is not applicable in India given
that there can be no monopoly afforded to 'time-sensitive information' or facts. The only
circumstance in which the doctrine would find application in India would be to injunct
time-sensitive news where both parties are 'direct competitors'. A controversy in this regard
arose when exclusive broadcasting rights of all cricket matches were granted to Star
TV and other platforms such as 'cricbuzz' started sharing ball-by-ball coverage of live
cricket matches. It was held that Star TV could not claim exclusive property over the
information itself, even for a short duration and it did not have a right to injunct third parties
from publishing information in relation to the match, whether or not such information was
disseminated for commercial reasons.
False attribution means a person falsely representing themselves as the owner or author
of the work. False attribution is recognised under common law and is also recognised as a
violation of moral right under the Copyright Act. Courts generally recognise: (1) a person's
right to receive credit; and (2) right to prevent any distortion of the work that would be
potentially harmful to the reputation and honour of the right holder. Under Section 57 of the
Copyright Act, the author has the right to restrain by way of an injunction or claim damages
in respect of any distortion, mutilation, modification or other acts that would be prejudicial
to the honour or reputation of author.
The CCPA enforces the CPA 2019 in India to provide relief to consumers from unfair
trade practices and false advertisements. The Competition Commission of India (CCI)
is the regulator set up under the Competition Act 2002 (Competition Act) to prevent
anticompetitive activities, and promote price-competition, information symmetry and
innovation. Under the Competition Act, agreements that may have an appreciable adverse
effect on competition are considered anticompetitive. The Competition Act restricts the
abuse of dominant position by an enterprise or a group, which includes imposing unfair or
discriminatory conditions or pricing in purchase or sale of goods or services. Recently, the
Competition (Amendment) Act 2023 introduced the following key changes: (1) requirement
of CCI approval where the value of any transaction, or acquisition of control, shares, voting
rights or assets of an enterprise, merger or amalgamation exceeds 20 billion rupees;
and (2) expanded definition of 'control' to include material influence of the activities of an
enterprise.
In terms of recent enforcement activity, the CCI approved the proposed amalgamation of
two leading Indian broadcasters, Zee Entertainment Enterprises Limited and Culver Max
Entertainment Limited (previously known as Sony Pictures Networks India Private Limited),
[44]
which would create the largest broadcaster in India. The combination was accepted with
certain modifications directed by the CCI. Furthermore, the CCI is undertaking a review
[45]
of a probe report on Apple's App Store commission and billing policies. The outcome
of this probe is expected to affect the revenue models of many entities in the media and
entertainment sector which make their services available through the Apple App Store. As
regards enforcement of the CPA 2019, The framework of the CPA 2019 and the powers of
the CCPA have been set out in Section II.
An advisory issued by the MIB completely prohibited advertising of online betting platforms
in India and to Indian consumers on print media, electronic media and online and social
media, including intermediaries as well as publishers, on the grounds that betting and
gambling are illegal in most parts of the country and because betting and gambling pose
significant financial and socio-economic risks for consumers.
As regards 'net neutrality', the TRAI had categorically stated that there cannot be any
discrimination by internet service providers on the grounds of content being accessed,
protocols being used, or the user equipment deployed. However, in response to a recent
[46]
consultation paper published by the TRAI on the regulation of OTT service providers,
certain telecoms entities have recommended the imposition of carriage service fees on
[47]
such OTT service providers.
Digital content
As noted above in Section II.iii, Section 79 of the IT Act and the IT Rules 2023 provide
safe harbour to intermediaries against liability for content stored, published, hosted
and transmitted on such intermediaries upon compliance with certain due diligence
requirements.
In the case of X Corp (formerly Twitter) v. Union of India, the Karnataka High Court
dismissed a petition filed by X Corp against orders made by the GOI under the Blocking
Rules wherein certain accounts on X were ordered to be blocked. X Corp contended that:
(1) the users operating the accounts were not provided with reasons and an opportunity
to be heard; and (2) the directions to suspend the entire account were disproportionate as
the Blocking Rules provide for blocking of public access to 'information' and not accounts
generally. However, the Karnataka High Court ruled against X Corp as (1) identification of
the users was not possible before the account-blocking orders were made and the blocking
orders were compliant with the Blocking Rules; and (2) the Blocking Rules allow for blocking
of entire accounts. The court also took note of X Corp's earlier non-compliance with earlier
orders and imposed costs of 5 million rupees. However, the imposition of costs has been
stayed by a larger bench on appeal by X Corp.
Contractual disputes
As per Sections 19(10) of the Copyright Act, all authors of musical works and literary
works such as lyrics (collectively underlying works) are entitled to claim the right to receive
royalties and consideration for utilisation of the work in any form where such works are
assigned to make a sound recording not a part of a cinematograph film. The owner of the
sound recording has the right to sell or commercially rent any copy of the sound recordings
and to communicate the sound recording to the public.
However, whether a licence granted for the exploitation of a sound recording would obviate
licences for the composition and lyrics has been the subject of contradictory decisions.
The Intellectual Property Appellate Board (IPAB) had held that licences are required to be
[48]
taken for underlying works. The Delhi High Court took the opposite view and has held
that once a licence for exploitation of a sound recording is taken, there is no requirement
[49]
to obtain a separate licence for exploitation of the underlying works. However, the case
is pending to be adjudicated before a larger bench of the Delhi High Court. Recently, the
Bombay High Court, in Indian Performing Rights Society Ltd v. Rajasthan Patrika Pvt Ltd,-
[50]
gave interim relief to the Indian Performing Rights Society and ordered that FM radio
broadcasters were required to make payment of royalties for underlying works as well as
exploitation of sound recordings. However, as the Bombay High Court gave an interim
order and the case is circumscribed to an FM radio broadcaster, this development does
not have precedent value. Therefore, the legal position on this point has not been settled
at this stage.
Another key area of dispute is a performer's (a person who performs such sound
recordings) right to receive royalties on exploitation of the sound recordings. Performers
have exclusive rights over their performances and any sound or visual recording thereof
(performers' rights) and also have a right to receive royalties upon commercial use.
However, the Delhi High Court has held that even performances recorded in a studio can
be interpreted to be live. Following this decision, the Indian Singers' Rights Association
(a copyright society for performers' rights) has obtained injunctions against commercial
establishments for exploiting rights in studio recordings of the performers' performances.
As regards whether the performer's right to receive royalties is inalienable, Section 39A of
the Copyright Act states that Sections 18 and 19 would apply in the case of broadcast
reproduction rights and performers' rights. Broadcast has been defined as communication
[51]
to the public by wire or wireless means. A plain reading of Section 39A would render the
performer's right to receive royalties inalienable. However, contrary views have been taken
in the industry regarding the applicability of the provisos to Section 18 as they explicitly
employ the words 'authors of the literary or musical work'. Performers are not included in
the definition of 'author' as per Section 2(d) of the Copyright Act and any sound or visual
recording of a performance would not constitute a literary or musical work.
The GOI is overhauling the technology, media and entertainment regulation landscape of
India. With the enactment of the Indian Data Protection Law and leading up to the DIA, the
coming year is a watershed year for regulation of the media and entertainment sector. The
DIA is also proposed to overhaul the 'safe harbour' granted to intermediaries by imposing
the more stringent 'notice and stay down' model instead of the 'notice and takedown' model
that is currently in place in India. This could require intermediaries to ensure that infringing
or non-compliant content is not just taken down but also does not resurface on the platform,
by employing technology solutions. Further, the proposed enactment of the rules under the
Indian Data Protection Law is expected to provide further clarity in relation to the duties
and obligations of the relevant stakeholders under the Indian Data Protection Law.
As noted above, the GOI is aiming to bring a new legislation to regulate the print
sector and has initiated pre-consultation on the regulatory regime for the broadcasting
sector. Moreover, the GOI is also engaging in high-level discussions around the Digital
Competition Bill in a bid to regulate large technology companies. New legislation governing
the telecommunications sector is also expected to modernise the legal framework for
telecommunications and internet service providers. As a closing remark, it is important
to keep a close eye on the increasing role of AI and its regulation under future legal
frameworks, including copyright laws and information technology laws.
Endnotes
1 Tanu Banerjee is a partner and Ishan Johri is a principal associate at Khaitan & Co.
Back to section
4 The Hindu, Over 50% Indians are Active Internet Users Now (4 May 2023),
https://www.thehindu.com/news/national/over-50-indians-are-active-internet-
users-now-base-to-reach-900-million-by-2025-report/article66809522.ece (last
accessed 9 October 2023). Back to section
7 MEITY, Presentation on Proposed Digital India Act 2023 (10 March 2023),
https://www.meity.gov.in/writereaddata/files/DIA_Presentation%2009.03.2023%
20Final.pdf (last accessed 9 October 2023). Back to section
14 Exchange Control Laws read with the Uplinking and Downlinking Guidelines 2022.
Back to section
17 News Broadcasters & Digital Association, Code of Ethics & Broadcasting Standards
(2008),
https://www.nbdanewdelhi.com/assets/uploads/pdf/1_CODE_OF_ETHICS_BROADCASTI
NG_STANDARDS_1_4_081.pdf (last accessed 9 October 2023). Back to section
19 Prasar Bharti, Advertising Code for Prasar Bharati dated 18 May 2022,
https://prasarbharati.gov.in/wp-content/uploads/2022/05/Approved-Notificati
on-02_2022-Ops-Advertising-Code-of-Prasar-Bharati-18052022.pdf. Back to section
22 Drug and Cosmetic Rules 2018 and the Drugs and Cosmetics Act 1940; Arms
Act 1959; Prize Competitions Act 1955; The Lotteries (Regulation) Act 1998; the
Public Gambling Act 1867; The Transplantation of Human Organs Act 1994; Infant
Milk Substitutes, Feeding Bottles and Infant Foods (Regulation of Production, Supply
and Distribution) Act 1992; Bar Council of India Rules under the Advocates Act
1961; The Drugs and Magical Remedies (Objectionable Advertisements) Act 1954;
Drugs and Cosmetics Act 1940; Indian Medical Council (Professional Conduct,
Etiquette and Ethics) Regulations 2002; Foreign Contributions Regulations Act 2010;
Standards of Weight & Measures Act 1976 (no advertisement without standard unit of
measurement); Representation of the People (Amendment) Act 1996; Prize Chits and
Money Circulation Schemes (Banning) Act 1978; Chartered Accountants Act 1949;
Company Secretaries Act 1980; Securities and Exchange Board of India (Prohibition of
Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations 2003;
The Prenatal Diagnostic Techniques (Regulation and Prevention of Misuse) Act 1994;
The Surrogacy (Regulation) Act 2021; and The Cigarettes and other Tobacco Products
(Prohibition of Advertisement and Regulation of Trade and Commerce, Production,
Supply and Distribution) Act 2003. Back to section
26 Tata Press v. Mahanagar Telephone Nigam Limited (1995) 5 SCC 139. Back to section
27 Hamdard Dawakhana v. Union of India, 1960 AIR 554; Indian Express Newspapers v.
Union of India, 1986 AIR 515. Back to section
30 RK Anand v. Registrar, Delhi High Court 2009 (10) SCALE 164. Back to section
33 CBI v. Closure Report (Fake CBI Report Case), Delhi Rouse Avenue Court Order (17
January 2023). Back to section
35 Major General MS Ahluwalia v. Tehelka.Com, 2023 SCC OnLine Del 4275. Back to
section
36 Reckitt & Colman of India Ltd v. MP Ramchandran, 1999 PTC (19) 741. Back to section
37 Pepsico Inc v. Hindustan Coca-Cola Ltd, 2003 (27) PTC 305 Del. Back to section
38 Hindustan Unilever Ltd v. USV Private Ltd, Bom HC (13 July 2022). Back to section
39 Press Information Bureau, Ministry of I&B blocks 8 YouTube channels for spreading
disinformation related to India's national security, foreign relations and public order (18
August 2022), https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1852785 (last
accessed 9 October 2023) Back to section
43 Digital Collectibles (P) Ltd v. Galactus Funware Technology (P) Ltd, 2023 SCC OnLine
Del 2306. Back to section
44 CCI, Notice under Section 6(2) of the Competition Act, 2002 (Act) given by Culver
Max Entertainment Private Limited, Zee Entertainment Enterprises Limited, Bangla
Entertainment Private Limited, and Essel Group Participants (4 October 2022),
https://www.cci.gov.in/images/caseorders/en/order1666779994.pdf (last accessed 9
October 2023). Back to section
45 Dia Rekhi, CCI reviewing probe report on Apple app store billing policy (21 June 2023),
https://economictimes.indiatimes.com/tech/technology/cci-reviewing-probe-re
port-on-apple-app-store-billing-policy/articleshow/101142937.cms?from=mdr (last
accessed 9 October 2023). Back to section
48 Music Broadcast Limited v. Tips Industries Ltd (2020) IPAB (Delhi), Paragraph 55.
Back to section
49 Indian Performing Right Society v. Entertainment Network (India) Ltd and Phonographic
Performance Ltd v. CRI Events Private Limited (2021) SCC OnLine Del 158. Back to
section
50 Indian Performing Right Society Limited v. Rajasthan Patrika Pvt Ltd, 2023 SCC OnLine
Bom 944. Back to section
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