Delhi High Court Restrains Retailer From Screening Films Without a Copyright Licence

The Delhi High Court has restrained an electronics retailer from screening cinematograph films on televisions in its stores without obtaining a licence from the relevant copyright society. The order, passed in a suit filed by a copyright society that administers public performance rights in films, is a useful reminder that playing films or music in a commercial space is a regulated act under the Copyright Act, 1957, and not a free incidental use simply because the business is selling something else.

What the Dispute Was About

The plaintiff is a copyright society that issues licences for the communication to the public and public performance of cinematograph films, administering a large repertoire of films on behalf of its member copyright owners. It alleged that the retailer, which operates multiple electronics stores, was displaying films from this repertoire on televisions and digital display systems in its showrooms without obtaining the required performance licence. The society sought an injunction to stop the unlicensed screening.

Public Performance Under the Copyright Act 1957

Under Section 14 of the Copyright Act, 1957, the owner of copyright in a cinematograph film has the exclusive right to communicate the film to the public. Doing such acts without the owner's authorisation amounts to infringement under Section 51. Showing a film on screens within a shop, where the public is present, can constitute communication to the public, which is why a commercial establishment generally needs a licence even when it is not charging a separate entry fee for the viewing.

The Role of Copyright Societies

Copyright societies are registered under Section 33 of the Copyright Act, 1957 and are authorised to issue licences and collect royalties on behalf of copyright owners. By pooling rights, a society allows a business to obtain a single licence covering a broad catalogue rather than negotiating individually with each film producer. Where a business uses protected works without such a licence, the society can sue for infringement and seek an injunction, damages, and an account of profits. The Delhi High Court's interim order reflects the standard remedy of restraining continued unlicensed use pending trial.

Practical Lessons for Businesses

Many retail outlets, restaurants, gyms, and waiting areas play films or music to enhance the customer experience. Businesses should recognise that such use may require a licence, and that the absence of a ticket charge does not by itself make the use lawful. The prudent course is to identify whether the works being played fall within a society's repertoire and to obtain the appropriate licence in advance. Doing so avoids litigation, injunctions that can disrupt operations, and exposure to monetary claims.

Remedies Available to Copyright Owners

When copyright in a film or sound recording is infringed, the owner or the authorised society can pursue both civil and, in appropriate cases, criminal remedies. On the civil side, the most common reliefs are an injunction restraining further infringement, damages or an account of the profits made through the unlicensed use, and delivery up of infringing material. Courts frequently grant interim injunctions at an early stage where a strong prima facie case is shown, because continued infringement causes ongoing harm that is difficult to compensate later. The Copyright Act, 1957 also provides for criminal liability in cases of knowing infringement, though societies often prefer the civil route for commercial disputes.

How Licensing Works in Practice

For a business, obtaining a licence is usually straightforward once the need is recognised. A copyright society publishes its tariff, and the business pays a fee that reflects factors such as the size of the premises, the nature of the use, and the duration of the licence. In return, the business is authorised to communicate the society's repertoire to the public within the agreed scope. This is far cheaper and less disruptive than defending an infringement suit, and it ensures that the creators and producers whose works draw customers into a space are fairly compensated. Treating licensing as a routine compliance cost, much like any other regulatory fee, is the sensible approach for any customer-facing business.

Music, Sound Recordings, and Other Works

The principle in this case is not limited to films. Playing recorded music in a shop, restaurant, or gym, or broadcasting television content in a commercial waiting area, can equally amount to communication to the public of the underlying works and sound recordings. Different rights may be administered by different societies, covering the musical and literary works on one hand and the sound recordings on the other. A business that uses such content should therefore check which works it is using and obtain licences from the appropriate societies. The cost of compliance is modest compared with the disruption and expense of an infringement action, and it ensures that authors, composers, and producers are paid for the commercial use of their creative work.

Key Takeaways

The Delhi High Court's order confirms that screening films in a commercial space is communication to the public under Section 14 of the Copyright Act, 1957 and requires authorisation, failing which it is infringement under Section 51. Copyright societies registered under Section 33 hold the right to license such use and to enforce it through the courts. For any business that plays films or music on its premises, the safe and lawful approach is to secure a public performance licence rather than risk an injunction and damages.