Supreme Court of India (Division Bench (DB)- Two Judge)

Appeal (Civil), 9412-9413 of 2016, Judgment Date: Sep 20, 2016

                        IN THE SUPREME COURT OF INDIA

                        CIVIL APPELLATE JURISDICTION

                     CIVIL APPEAL NOs. 9412-9413 OF 2016
              (arising out of S.L.P (C) Nos. 2380-2381 OF 2014)


International Confederation
of  Societies of Authors and
Composers (CISAC)                                            … Appellants

                                   Versus

        Aditya Pandey & ors                                  …Respondents

                                    WITH

                     CIVIL APPEAL NOs. 9414-9415 OF 2016
             (arising out of S.L.P(C) Nos. 21082-21083 OF 2012)

                                    WITH

                        CIVIL APPEAL NO. 9416 OF 2016
                 (arising out of S.L.P(C) No. 2379 OF 2014)


                               J U D G M E N T

Prafulla C. Pant, J.

      Leave granted.

All these three appeals are directed against the order dated  May  08,  2012
passed by Division Bench of High Court of Delhi in FAO (OS) Nos. 423-424  of
2011 and FAO (OS) No. 425 of 2011 with CM No. 19128 of  2011,  whereby  said
Court has dismissed the appeals, and  affirmed  the  order  of  the  learned
Single Judge in Suit CS (OS) No. 1185 of  2006  and  Copyright  Infringement
Suit CS(OS) No. 1996 of 2009 disposing of  the  Interim  Applications  moved
for temporary injunction and  directions.


Learned  Single  Judge  had  disposed  of  Interim  Applications  in   above
mentioned suits as under:-

“55. In the light of  the  above  conclusions-  which  are  prima  facie  in
nature, and do not preclude the plaintiffs in both cases, from  establishing
and proving their case- the following directions are issued:

In the synergy suit, (i.e. CS(OS) 1185/2006) the applications for  temporary
injunctions, i.e. IA Nos., 6486/2006, 7027/2006 and 6487/2006  are  disposed
of by stating that the defendants do not have to secure a license  from  the
plaintiffs;

In the CRI suit, (i.e. CS(OS) No. 1996/2009) the application, i.e.  IA  Nos.
13691/2009, 13692/2009 are disposed of with the directions that in case  the
defendants wish to perform the sound recording in public, i.e. play them,  a
license from PPRS is  essential;  in  case  the  musical  works  are  to  be
communicated or performed in the public, independently, through an  artiste,
the license of IPRS is essential. In case the defendant wishes  to  hold  an
event involving performances or communication of works of both kinds to  the
public, the license or authorization of both IPRS and  PPRS  are  necessary.
The defendant is accordingly  restrained  from  communicating  any  of  such
works to the public,  or  performing  them,  in  the  public,  without  such
appropriate authorization, or licensing pending adjudication of the suit.”


Issue involved in the present appeals is that where  lyric  written  by  ‘X’
(lyricist) and music composed by ‘Y’  (musician)  are  used  to  make  sound
recording by ‘Z’ (Sound Recording Company), whether  ‘A’  (Event  Management
Company/Event Organizer) is required to seek licence from ‘X’  and  ‘Y’  for
subsequently playing the song in public even after  ‘A’  had  paid  for  the
broadcasting of the song to ‘Z’ (Sound Recording Company) ?


 Indian Performing Rights Society  Limited  (For  short  “IPRS”)  (appellant
before us in two of  the  three  appeals)  is  the  Society  of  authors  of
literary work, and composers of musical work,  is  the  plaintiff/appellant.
And  International  Confederation  of  Societies,  is   a   non-governmental
organization, an association of copyright societies, registered  in  France,
which was not the party before the trial court, is the appellant in  one  of
the above three appeals.  Respondent No.2 – Synergy Media  Entertainment  is
the Event Management Company of which Respondent No.1 is the Senior  Manager
(Finance).


The case of the plaintiff/appellant is that authors  of  literary  work  and
composers of musical work are the first owners of  copyright  in  lyric  and
musical work respectively under the Copyright Act, 1957.  As such they  have
the right to get restrained Respondent Nos. 1 and 2  from  infringing  their
copyright, and licence given to sound recording company does not affect  the
rights of lyricist  or  the  musician.   Reference  has  been  made  to  the
definition  of  expression  “communication  to  the  public”  defined  under
Section 2(ff) and that of ‘performance’ defined in Section 2(q) of the  Act.
 Further, reference has been made to the amendment  introduced  in  1994  in
the Copyright Act, 1957 and it is  pleaded  that  the  right  created  under
Section 14(a)(iv) cannot be  read  in  derogation  of  right  created  under
Section 14(a)(iii) of the Act.


The grievance of the International  Confederation  Society  (IFS)/3rd  party
appellant is that the petitioner  is  aggrieved  due  to  the  findings  and
alleged legal infirmities in the impugned order as it has an  immediate  and
direct impact on its members and the creative community for  their  interest
(which the petitioner represents), stands to suffer loss and injury  as  the
impugned judgment deprives them of their exclusive right to collect  royalty
in cases of communication of sound recordings to the public.


On behalf of the  appellants,  it  is  further  argued  that  the  erroneous
finding in the impugned judgment denies the members of  the  appellants  the
right recognized under various international conventions to which  India  is
a party, which they hold under copyright law. It is further  submitted  that
the impugned judgment creates discord between  the  manner  of  exploitation
and treatment of same works, in two different countries,  contrary  to  what
the  International  Conventions  and  Treaties  seek  to  achieve.   It   is
contended that the erroneous interpretation of law in the impugned  judgment
stands  in  direct  conflict  with  India’s  obligations  under  the   Berne
Convention for the Protection of Literary and  Artistic  Works  (Paris  Act,
1971) and the agreement on Trade Related Aspects  of  Intellectual  Property
Rights Agreement, 1994 (TRIPS Agreement), to which India  has  acceded.   It
thus places India  out  of  step  with  international  copyright  norms  and
practice. Also, it is  contended  that  the  impugned  judgment  places  the
reciprocal agreements between IPRS  and  other  collecting  societies  under
considerable stress as it makes impossible for the Indian  Performing  Right
Society Limited to fulfill its contractual obligations under the  reciprocal
arrangements,  thus  affecting  the  rights  of  millions  of   songwriters,
composers and publishers.

On the other hand, on behalf of the respondent, it is pointed out that  with
the amendment made in the  Copyright  Act,  1957,  in  the  year  2012,  the
producer of sound recording  has  an  independent  copyright  of  his  work.
Relying on the law laid down  by  this  Court  in  Indian  Performing  Right
Society Ltd. v. Eastern Indian Motion Pictures  Association  and  others[1],
it is contended that once the author of a lyric  or  a  musical  work  parts
with a portion  of  his  copyright,  by  authorizing  a  film  producer,  or
producer of sound recording in respect of his work, a right exists with  the
latter to exhibit his work to the public.  Also,  it  is  pleaded  that  the
appeals filed by Societies, not  registered  in  India,  on  behalf  of  the
lyricists and musicians, under Section 33 of the Act, are not maintainable.

Before further discussion, we think it just  and  proper  to  reproduce  the
relevant provisions of The Copyright Act, 1957 to understand the meaning  of
various words and expressions relevant for the purposes of this case and  to
appreciate the rights of the  parties.    Word  ‘copyright’  is  defined  in
Section 14 of the Act which reads as under:

“[2]14.     Meaning of copyright.-
For the purposes of this Act, "copyright" means the exclusive right  subject
to the provisions of this Act, to do or authorise the doing of  any  of  the
following acts in respect  of  a  work  or  any  substantial  part  thereof,
namely:-

(a)   in the case of a literary, dramatic  or  musical  work,  not  being  a
computer programme, -

to reproduce the work in any material form including the storing  of  it  in
any medium by electronic means;

to issue copies of the work to  the  public  not  being  copies  already  in
circulation;

to perform the work in public, or communicate it to the public;

to make any cinematograph film or sound recording in respect of the work;

to make any translation of the work;

to make any adaptation of the work;

to do, in relation to a translation or an adaptation of  the  work,  any  of
the acts specified in relation to the work in sub-clauses (i) to (vi);


(b)   in the case of a computer programme,-


to do any of the acts specified in clause (a);


[3][(ii)    to sell or give on commercial rental or offer for  sale  or  for
commercial rental any copy of the computer programme:


      Provided that such commercial rental does  not  apply  in  respect  of
computer programmes where the programme itself is not the  essential  object
of the rental.]


(c)   in the case of an artistic work,-


[4][(i)     to reproduce the work in any material form including –


(A) the storing of it in any medium by electronic or other means; or


(B) depiction in three dimensions of a two dimensional work; or


 (C) depiction in two dimensions of a three dimensional work;]


to communicate the work to the public;


to issue copies of the work to  the  public  not  being  copies  already  in
circulation;


to include the work in any cinematograph film;


to make any adaptation of the work;


to do in relation to an adaptation of the work any of the acts specified  in
relation to the work in sub-clauses (i) to (iv);


(d)   In the case of cinematograph film, -


[5][(i)     to make a copy of the film, including


(A)   a photograph of any image forming part thereof; or


(B)   storing of it in any medium by electronic or other means;]


[6][(ii)    to sell or give on commercial rental or offer for  sale  or  for
such rental, any copy of the film;]


(iii)       to communicate the film to the public;


(e)   In the case of sound recording, -


(i)         to make any other sound  recording  embodying  it  [7][including
storing of it in any medium by electronic or other means];


[8][(ii)    to sell or give on commercial rental or offer for  sale  or  for
such rental, any copy of the sound recording.[


(iii)       to communicate the sound recording to the  public.


Explanation: For the purposes of this section, a copy which  has  been  sold
once shall be deemed to be a copy already in circulation.”



To appreciate the copyrights of author of literary work  on  one  hand,  and
that of the producer of sound recording on the other,  it  is  necessary  to
refer to the meaning of “author”, given in clause (d) of Section  2  of  the
Act.  The same is reproduced below: -
“(2)(d) ‘author’ means,-
(i)   in relation to literary or dramatic work, the author of the work;

(ii)        in relation to a musical work, the composer;

(iii)       in relation to an artistic work other  than  a  photograph,  the
artist;

(iv)  in relation to a photograph, the person taking the photograph;

[(v)  in relation to a cinematograph film or sound recording, the  producer;
and

(vi)  in relation to any literary, dramatic, musical or artistic work  which
is computer-generated, the person who causes the work to be created;][9]

The above definition shows that after amendment made in  the  definition  of
“author” by Act No. 38 of 1994, the producer of sound recording is  also  an
author. But his right would not affect the separate right  of  any  work  in
respect of which sound recording is  made,  as  provided  in  Section  13(4)
quoted below:

“13(4)  The copyright in a cinematograph film or a  [sound recording]  shall
not affect the separate copyright in any work  in  respect  of  which  or  a
substantial part of which, the film, or as the  case  may  be,  the   [sound
recording][10] is made”.


It is relevant to mention here that as defined in  Section  2(xx),  inserted
vide Act No. 27 of 2012, “sound recording” means a recording of  sound  from
which such sounds may be produced regardless of the  medium  on  which  such
recording is the method by which  the  sounds  are  produced.   And  Section
2(ff), inserted by same Amending Act, explains expression “communication  to
the public” as under: -


“(ff)        "communication  to  the  public"  means  making  any  work   or
performance available for being seen or heard or otherwise  enjoyed  by  the
public directly or by any means  of  display  or  diffusion  other  than  by
issuing physical copies of it,  whether  simultaneously  or  at  places  and
times chosen individually, regardless of whether any member  of  the  public
actually sees, hears or otherwise enjoys the work  or  performance  so  made
available.


      Explanation.- For the purposes of this clause,  communication  through
satellite or cable or any other means of simultaneous communication to  more
than one household or place of residence including residential rooms of  any
hotel or hostel shall be deemed to be communication to the public;”



Section 16 of the Copyright Act, 1957  provides  that  no  person  shall  be
entitled to copyright otherwise than in accordance of the Act, and it  reads
as follows: -


“16. No copyright except as provided  in  this  Act.-  No  person  shall  be
entitled to copyright or any similar right in any  work,  whether  published
or unpublished, otherwise than under and in accordance with  the  provisions
of this Act or of any other law for the time being in force, but nothing  in
this section shall be construed as abrogating any right or  jurisdiction  to
restrain a breach of trust or confidence.



Now, we have to see  who  is  the  first  owner  of  copyright  and  how  to
harmonize the copyrights  of  author  of  literary  work  and  that  of  the
‘author’ of sound recording.  Clauses (a) and  (b)  of  Section  17  of  the
Copyright Act, 1957 and proviso added to it by Act No. 27 of 2012,  read  as
under: -


“17. First owner of copyright. – Subject to the provisions of this Act,  the
author of a work shall be the first owner of the copyright therein:


Provided that –


(a)   In the case of a literary, dramatic  or  artistic  work  made  by  the
author in the course of his employment by the  proprietor  of  a  newspaper,
magazine  or  similar  periodical   under   a   contract   of   service   or
apprenticeship, for the purpose of publication in a newspaper,  magazine  or
similar periodical, the  same  proprietor  shall,  in  the  absence  of  any
agreement to the contrary, be the first owner of the copyright in  the  work
in so far as the copyright relates to the publication of  the  work  in  any
newspaper, magazine or similar periodical, or to  the  reproduction  of  the
work for the purpose of its being so published, but in  all  other  respects
the author shall be the first owner of the copyright in the work;


(b)   Subject to the provisions of clause (a), in the case of  a  photograph
taken, or a painting or portrait drawn, or an engraving or  a  cinematograph
film made, for valuable consideration at the instance of  any  person,  such
person shall, in the absence of any agreement to the contrary, be the  first
owner of the copyright therein;


                 ………………………………


      Provided that in case of any  work  incorporated  in  a  cinematograph
work, nothing contained in clauses (b) and (c) shall  affect  the  right  of
the author in the work referred to in  clause  (a)  of  sub-section  (1)  of
Section 13.”


Section 13(1)(a) of the  Act  refers  to  copyright  of  original  literary,
dramatic, musical and artistic works.”



Let us now look into the relevant provisions which govern the assignment  of
work by an author of literary  or  musical  work  and  licenses  in  respect
thereof to prospective owner of the copyright or user  of  the  work.   Last
proviso to Section 18 with its main part, makes following reading: -


“18.  Assignment of copyright. – (1)  The  owner  of  the  copyright  in  an
existing work or the prospective owner of the copyright  in  a  future  work
may assign to any person  the  copyright  either  wholly  or  partially  and
either generally or subject to limitations and either for the whole  of  the
copyright or any part thereof:


      …………………….


…….   Provided also  that  the  author  of  the  literary  or  musical  work
included in the sound recording but not forming part  of  any  cinematograph
film shall not assign or waive the right to receive royalties to  be  shared
on an equal basis with the assignee of  copyright  for  any  utilization  of
such work except to the legal heirs  of  the  authors  or  to  a  collecting
society for collection and distribution and any assignment to  the  contrary
shall be void.[11]


Needless to say that appellants are the collecting societies.


Further, sub-sections (3), (4) and (10) of Section 19,  which  are  relevant
for the purposes of this case, provide as to mode of assignment as under: -

“19. Mode of assignment. –


…………………………..


      (3) The assignment of copyright in any work  shall  also  specify  the
amount of royalty and any other consideration payable, to the author or  his
legal heirs during the currency of the assignment and the  assignment  shall
be subject to revision, extension or termination on  terms  mutually  agreed
upon by the parties.



      (4) Where the assignee does not exercise the  right  assigned  to  him
under any of the other sub-sections of this section  within  period  of  one
year from the date of assignment, the assignment in respect of  such  rights
shall be deemed to have lapsed after the expiry of the  said  period  unless
otherwise specified in the assignment.


      …………………….


      [(10) No assignment of the copyright in  any  work  to  make  a  sound
recording which does not form part of any cinematograph  film  shall  affect
the right of the author of the work to claim an  equal  share  of  royalties
and  consideration  payable  for  any  utilization  of  such  work  in   any
form.”][12]


Above quoted sub-section (10) of Section 19 is  inserted  with  effect  from
21.06.2012 vide Act No. 27 of 2012, which did  not  exist  on  the  day  the
plaint was filed before trial court in the year  2006.  As  such  rights  as
exist w.e.f. 21.06.2012 were not the same prior to it.


In Chapter VI of the Copyright Act, 1957,  Section  30  relates  to  licence
granted by an owner of copyright  which reads as under :-


“30. Licences by owners of copyright.- The owner of  the  copyright  in  any
existing work or the prospective owner of the copyright in any  future  work
may grant any interest in the right by licence in [writing  by  him][13]  or
by his duly authorised agent:


Provided that in the case of a licence relating to copyright in  any  future
work,  the  licence  shall  take  effect  only  when  the  work  comes  into
existence.


Explanation.- Where a person to whom a licence relating to copyright in  any
future work is granted under this section dies before the  work  comes  into
existence, his legal representatives shall, in the absence of any  provision
to the contrary in the licence, be entitled to the benefit of the licence.”



“31. Compulsory licence in works withheld from public.-(1) If  at  any  time
during the term of copyright  in  any  work  which  has  been  published  or
performed in public, a complaint is made to the  Copyright  Board  that  the
owner of copyright in the work –


(a)   …………………


(b)   has refused to allow communication to  the  public  by  broadcast,  of
such work or in the case of sound recording the work recorded in such  sound
recording, on terms which the complainant considers reasonable;


the Copyright Board, after giving to the owner of the copyright in the  work
a reasonable opportunity of being heard and after holding  such  inquiry  as
it may deem necessary, may, if it is satisfied that  the  grounds  for  such
refusal are not reasonable, direct the Registrar of Copyrights to  grant  to
the complainant a licence to republish the work, perform the work in  public
or communicate the work to the public by [broadcast], as the  case  may  be,
subject to payment to the owner of the copyright of  such  compensation  and
subject to such other terms  and  conditions  as  the  Copyright  Board  may
determine; and  thereupon  the  Registrar  of  Copyrights  shall  grant  the
[licence to such person or persons who, in  the  opinion  of  the  Copyright
Board, is or are qualified to do so] in accordance with  the  directions  of
the Copyright Board, on payment of such fee as may be prescribed.”[14]


      However, we are not aware if any complaint was made  before  Copyright
Board in the present matter.


At this stage, it is necessary to understand distinction between  assignment
of a copyright of a work and licence to use the  work.  In  the  assignment,
normally, ownership of the copyright of the work is transferred but  in  the
case of licence another person is allowed to use the work by the author.


A conjoint reading of various provisions of the Act  leaves  no  doubt  that
though each of the seven sub-clauses of clause (a) of Section  14   relating
to literary, dramatic or musical work, are independent of one  another,  but
reading these sub-clauses independently cannot be interpreted to  mean  that
the right of producer of sound recording, who also  comes  under  definition
of author under Section 2(d)(v), and has a right to communicate his work  to
the public under Section 14(e)(iii) of the Act  is  lost.   It  is  nobody’s
case that the defendant/respondents had  stolen  the  lyric  or  that  sound
recording is made without licence from the lyricist or  musician.   Argument
advanced on  behalf  of  the  appellants  that  the  permission  granted  to
defendant was sans the right to  communicate  the  sound  recording  to  the
public, cannot be accepted as there  appears  no  such  term  and  condition
between the parties depriving the defendant from communicating his  work  of
making song to the public. As  far  as  the  International  Conventions  and
Treaties are concerned, the law has been amended by Act 27  of  2012  w.e.f.
21.06.2012.  In the present case the suit was filed in 2006, and the law  as
it existed has to be applied, for the period prior to 21.06.2012.


We agree with the Division Bench of the High Court that a  song  is  created
by three players namely lyricist, musician and singer.  We have  to  examine
in the present case as to what extent, if any,  identities  of  above  three
players break or get diluted when a song is created and sound  recording  is
done.    To understand this  and  the  relevant  provisions  of  law  quoted
above, we would like to remind  the  observations  made  by  this  Court  in
paragraphs 63, 64 and 69 in Entertainment  Network  (India)  Ltd.  v.  Super
Cassette Industries Ltd.[15],  which reads as under:

“63. A statute as is well  known  must  be  read  in  its  entirety.  It  is
required to be read chapter by chapter, section by  section  and  clause  by
clause. The definitions of the term “broadcast” as  also  “sound  recording”
must be given a wide meaning. Clause (a) of  Section  13  protects  original
work whereas clauses (b) and (c) protect derivative works. It  provides  for
commercial manifestation of original work and the fields specified  therein.
Clause (a) of sub-section (1) of Section 14 deals with original work. It  is
extremely broad. In contrast  thereto,  the  copyright  on  films  or  sound
recording  work  operates  in  restrictive  field;  they   provide   for   a
restrictive right as would appear from the provisions contained  in  Section
14(1)(e) of the Act.

64. For a proper construction of the provisions, will  it  be  necessary  to
keep in mind the difference between the  right  of  the  original  work  and
right of sound recording? Should  we  also  bear  in  mind  that  there  are
various forms of intellectual property rights. Section 16  provides  that  a
right, inter alia, in respect of any work must be claimed only under and  in
accordance with the provisions of the Act unlike trade mark and passing  off
rights can be enforced even though they are not registered. It must also  be
noticed  that  whereas  the  term  of  a  copyright  in  original  literary,
dramatic, musical and artistic works  not  only  remains  protected  in  the
entire lifetime of the author but also until 60 years from the beginning  of
the calendar year next following the year in  which  the  author  dies,  the
term of copyright in sound recording subsists only  for  60  years,  but  as
indicated hereinbefore, the same would not mean that the right of  an  owner
of sound recording is in any way inferior to that of right of  an  owner  of
copyright on original literary work, etc.

      ……………………………………..

69. If the right of an author/society is so pervasive, is  it  necessary  to
construe the provisions under Section 31 of the Act  having  regard  to  the
international covenants and the laws operating in the other  countries?  The
answer to the said question must be rendered in affirmative.  Interpretation
of a statute cannot remain static. Different canons and  principles  are  to
be applied having regard to the purport and  object  of  the  Act.  What  is
essential therefor is to see that the expanding area in which the  copyright
will have a role to play is covered. While  India  is  a  signatory  to  the
international covenants, the law should have been amended in terms  thereof.
Only because laws have not been amended, the same would not by  itself  mean
that the purport and object of the Act would be allowed to be  defeated.  If
the ground realities change, the interpretation should also  change.  Ground
realities would not only depend upon the new situations and changes  in  the
societal conditions vis-à-vis the use of sound recording  extensively  by  a
large public, but also keeping in view of the fact that the Government  with
its eyes wide open have become a signatory to international conventions”.

In Indian Performing Rights Society Ltd. vs. Eastern Indian Motion  Pictures
Association  and  Other  (supra)  (Which  was  decided  long   before   2012
Amendments) in paragraph 15, this Court has made following  observations:  -

“15. ……………………….Though a conflict may at first sight seem  to  exist  between
Section 13(4)  and  Section  14(1)(a)(iii)  on  the  one  hand  and  Section
14(1)(c)(ii) on the other, a close scrutiny and a  harmonious  and  rational
instead of a mechanical construction of the said provisions cannot but  lead
to the irresistible conclusion that once the author of a lyric or a  musical
work parts with a portion of his copyright by authorising  a  film  producer
to make a cinematograph film in respect of his work and thereby to have  his
work incorporated or recorded on the sound track of  a  cinematograph  film,
the latter acquires by virtue of Section 14(1)(c) of the Act  on  completion
of the cinematograph film a copyright which gives him  the  exclusive  right
inter alia of performing the work in public i.e. to cause the  film  insofar
as it consists of visual images to be seen  in  public  and  insofar  as  it
consists of the acoustic portion including a lyric or a musical work  to  be
heard in public without  securing  any  further  permission  of  the  author
(composer) of the lyric or musical work for the performance of the  work  in
public. …………………….”

In view of the  above  settled  principles  of  law,  and  for  the  reasons
discussed by us, we are unable to find  any  error  in  the  impugned  order
passed by the High Court in a suit filed in 2006. However, we would like  to
clarify, that with effect from 21.06.2012, in view of  sub-section  (10)  of
Section 19, the assignment of the  copyright  in  the  work  to  make  sound
recording which does not form part of  any  cinematograph  film,  shall  not
affect the right of the author of the  work  to  claim  an  equal  share  of
royalties or/and consideration payable for utilization of such work  in  any
form by the plaintiff/respondent.


Therefore, all the appeals  stand  disposed  of  with  the  observations  as
above.  No order as to costs.


                                                             .……………….……………J.
New Delhi;                                             [Prafulla C. Pant]
September 20, 2016.



                                                                  REPORTABLE

                        IN THE SUPREME COURT OF INDIA
                        CIVIL APPELLATE JURISDICTION

                     CIVIL APPEAL Nos.9412-9413 OF 2016
                (Arising out of SLP(C) Nos.2380-2381 of 2014)


International Confederation of Societies
of Authors and Composers (CISAC)                           …….Appellant

                                   Versus

Mr. Aditya Pandey & Ors.                                …....Respondents

                                    With

                     CIVIL APPEAL Nos.9414-9415 OF 2016
               (Arising out of SLP(C) Nos.21082-21083 of 2012)

                        CIVIL APPEAL NO.9416 OF 2016
                   (Arising out of SLP(C) No.2379 of 2014)

                               J U D G M E N T

PER RANJAN GOGOI, J.


1.    I have had the privilege of going through the judgment prepared by  my
learned brother (Prafulla C. Pant, J.). While agreeing with the  conclusions
reached by my learned brother, I would like to  very  briefly  indicate  the
reasons for the same which are somewhat different.


2.    The relevant provisions of the Copyright Act, 1957, as  amended,  have
been set out in detail in the judgment of my learned brother. I,  therefore,
need not extract the same all over again. Suffice it to  notice  that  three
classes of works in which copyright subsists under Section 13(1) of the  Act
are (a)  original  literary,  dramatic,  musical  and  artistic  works,  (b)
cinematograph films and (c) sound recording.  A reading  of  the  provisions
of the Act show that such copyright co-exists. The question in the  suit  in
which the impugned order has been  passed  by  the  High  Court  is  one  of
determination of the precise extent of such co-existence and  the  interplay
between the rights in the three classes of works  enumerated  under  Section
13. The said question has been identified in Para 35 of the  impugned  order
of the Division Bench which is as follows:


“The area of dispute is: what happens to  the  copyright  in  an  underlying
work  (literary  and  musical  works)  when  the  derivative   work   (sound
recording)  is  exploited.  Does  he  who  obtains  a  permission  from  the
copyright owner of the derivative work to broadcast by way of  communicating
to  the  public  said  derivative  work,  additionally  requires  a  similar
permission from the owner of the underlying  works  i.e.  the  literary  and
musical works?”


3.    The present appeals being against an interim order, naturally,  strong
and compulsive reasons exist for  exercise  of  judicial  restraint  in  the
manner and extent of exercise of jurisdiction. Though it is  too  elementary
it must be said that the court must refrain  from  expressing  any  opinion,
whatsoever, touching upon the merits of the controversy, lest, the same  may
prejudice either of the parties in the suit. While there  can  be  no  doubt
that an order, even interim, sans  any  reasons,  would  not  be  judicially
acceptable,  the  precise  exercise  that  a  court  would  be  required  to
undertake at the interim stage must be left to the wise  discretion  of  the
concerned court itself. It is not only difficult  but  also  undesirable  to
lay down the parameters and contours of the exercise of  judicial  power  at
the interim stage by expressly laying  conditions  which  would  be  binding
under Article 141 of the Constitution. But it needs to be reminded  that  an
elaborate reasoning with the “footnote” that the same  are  prima  facie  or
tentative is hardly an effective remedy  to  prevent  the  imprint  of  such
observations on the human mind that mans  the  court  at  different  levels.
This is what appears to have happened in the present case.


4.    The object  of  an  interim  exercise  by  the  court  is  to  find  a
reasonable solution to the matter which  should  govern  the  parties  until
disposal of the suit where the main controversy is required to  be  decided.
Having perused the order  of  the  learned  Single  Judge  as  well  as  the
Division Bench, I am of the view that the order of  the  Single  Judge,  set
out in opening part of the judgment of my learned brother  (which  has  been
affirmed in appeal by the Division Bench  of  the  High  Court),  strikes  a
reasonable note to find a workable  solution  during  the  pendency  of  the
suit. I therefore fully  agree  with  the  views  expressed  by  my  learned
brother that the order of the High Court needs to be upheld.


5.    However, while saying so I would like to take note of  two  disturbing
trends which have emerged from the facts of the present cases.   The  suits,
by now, are over 10 years old; yet, there has been no  substantial  progress
therein. Parties to the suits seem to have lost all interest in  prosecuting
the same, perhaps, because the exhaustive orders at the  interim  stage  had
virtually foreclosed the issues in the suits.  It is evident from the  order
dated 24th August, 2016 passed by the Joint Registrar of the High  Court  in
O.S No. 1185 of 2006 that due to repeated adjournments sought on  behalf  of
the plaintiff and on account  of  the  failure  of  the  plaintiff  to  file
affidavit evidence  of  witnesses,  the  right  of  the  plaintiff  to  lead
evidence has been closed. In the other suits i.e. O.S. No.666  of  2006  and
O.S. No.1996 of 2009 there has, again, been persistent defaults on the  part
of the plaintiffs and the said suits now stand transferred to the  competent
Civil Court from the Delhi High Court. The pendency  of  the  suits,  for  a
period of over 10 years with no progress and the conduct of  the  plaintiffs
in not filing/placing their evidence before the learned trial Judge,  though
vehemently contesting the  present  appeals  (against  interim  orders)  are
facts which are difficult to reconcile. Equally difficult is to  accept  the
fact that the  International  Confederation  of  Societies  of  Authors  and
Composers (ICSAC), though not a party to any of  the  suits  but  have  been
allowed to contest the interim matter before this Court on  the  basis  that
the order of the High Court adversely affects  the  societies’  rights,  has
chosen not to implead itself as a party to the suits and pursue the same.


6.    Having said what was felt required and necessary  we  dispose  of  all
the appeals by holding all observations, findings  and  views  expressed  by
the High Court in the original as well as appellate  proceedings  before  it
to be of no legal effect, whatsoever, in so far as the merits of  the  suits
are concerned which will now be expedited and heard and disposed  of  within
a year from today.



                                                              ……………………….J.

                                                          [RANJAN GOGOI]

NEW DELHI

SEPTEMBER 20, 2016.

-----------------------
[1]



       (1977) 2 SCC 820
[2]    Substituted vide Act No. 38 of 1994 w.e.f. 10.05.1995
[3]    Substituted by Act No. 49 of 1999 w.e.f. 15.01.2000
[4]    Substituted by Act No. 27 of 2012 w.e.f. 21.06.2012
[5]    Substituted by Act No. 27 of 2012 w.e.f. 21.06.2012
[6]    Substituted by Act No. 27 of 2012 w.e.f. 21.06.2012
[7]    Inserted by Act No. 27 of 2012 w.e.f. 21.06.2012
[8]    Substituted by Act No. 27 of 2012 w.e.f. 21.06.2012
[9]    Sub clauses (v) and (vi) are added vide Act No. 38 of 1994 w.e.f.
10.05.1995

[10]   Expression “sound recording” is substituted for “record” vide Act
No. 38 of 1994 w.e.f. 10.05.1995

[11]   Second, third and fourth (Last) provisos are added by Act 27 of
2012.

[12]   Inserted by Act No. 27 of 2012 w.e.f. 21.06.2012

[13]    Substituted for words ‘writing signed by him’ Vide Act 27 of 2012.

[14]   As amended Vide Act 27 of 2012

[15]   (2008) 13 SCC 30