Background of the Case

Saregama India Limited (Saregama) filed a suit against Vels Film International Limited (Defendant no 1) and others, at the Delhi High Court, for infringing its copyright in the song “En Iniya Pon Nilave” from the film “Moodu Pani” by using it in the film “Aghathiyaa”. Saregama claimed ownership of the song based on an agreement with the producer of “Moodu Pani” and stated that the defendants used the song’s lyrics and music composition without authorization amounts to copyright infringement. (CS(COMM) 38/2025 & I.A. 1021/2025, I.A. 2163/2025)

Defendant No. 2 is the licensee, distributor, and content manager of Defendant No. 1. They were involved in the publication of the infringing song on various streaming websites.

Defendant No. 3 is the music composer (IIaiyaraaja) of the original song “En Iniya Pon Nilave” from the film “Moodu Pani”. Defendant No. 3 claims ownership of the musical work and asserts the right to create adaptations of the song.

Saregama’s Contentions

1. Ownership of Copyright: The plaintiff claims ownership of the copyright in the song “En Iniya Pon Nilave” from the film “Moodu Pani” based on an agreement with the producer of the film, Raja Cine Arts. They argued that as per Section 17 of the Copyright Act, 1957, the producer of a cinematograph film or a sound recording is the first owner of the copyright in the sound recordings, literary works, musical works, and other works that form part of the film.
2. Assignment of Rights: The plaintiff asserted that the producer of “Moodu Pani” assigned all the copyrights in the original song to them, making them the subsequent owner of the copyright in the literary and musical works of the song.
3. Unauthorized Use by Defendants: The plaintiff contended that the defendants used the lyrics and music composition of the song without authorization and published the infringing song on various streaming websites despite receiving a cease-and-desist notice.
4. Infringing Song Not an Adaptation: The plaintiff argued that the infringing song cannot be considered an adaptation as the defendants did not make any arrangement or transcription of the work as defined in the Copyright Act.
5. Defendant No. 3’s Lack of Rights: The plaintiff asserted that Defendant No. 3, the music composer, did not have the right to issue any license to Defendant No. 1 regarding the musical work of the original song. They also argued that Defendant No. 3 is not the author of the literary work (lyrics) of the original song and therefore cannot claim any rights in it.

Defendant No. 1 (VELS FILM INTERNATIONAL LIMITED) contended:

1. That they have created a new sound recording, which is an adaptation of the original song “En Iniya Pon Nilave”.
2. They argue that they have invested significant money, engaged a music composer, and funded the orchestra and synchronization of the adaptation.
3. They assert that they are a bona fide third-party licensee of the underlying musical and literary work, having paid Rs. 5,40,000/- (approx. US $ 6500) to Defendant No. 3 as consideration.
4. They relied on Section 13(4) and Section 14 of the Copyright Act to claim the right to make an adaptation of the work.
5. They also argued that the plaintiff’s reliance on Section 17 to claim ownership over all the rights is unfounded and contrary to the Copyright Act.

Defendant No. 3:

1. Defendant No. 3, the music composer, claimed ownership of the musical work and asserted its right to create adaptations under Section 14(1)(a)(vi) of the Copyright Act1.
2. They argued that as the composer, they are the first owner of the copyright in the musical work and have all the rights under Section 14(1)(a) of the Copyright Act.
3. They contended that the plaintiff has not shown that Defendant No. 3 assigned any copyright except the limited right of using the musical work for synchronization for the cinematograph film.
4. They also argued that the 2012 amendment to Section 17 of the Copyright Act is beneficial legislation for authors of musical and literary works and that their rights are intact and not defeated by the plaintiff’s right in the cinematograph film.

Court Ruling

Ownership of Copyright: The primary question before the court was whether the copyright in the song “En Iniya Pon Nilave” from the film “Moodu Pani” vested in the plaintiff, Saregama India Limited, or in Defendant No. 3, the music composer. The court noted the following.

1. As per Section 17 of the Copyright Act, 1957, the producer of a cinematograph film or a sound recording is the first owner of the copyright in the sound recordings, literary works, musical works, and other works that form part of the film.
2. This would mean that the producer has all the rights granted to an owner of copyright over the musical and literary works in a cinematograph film, including the right to assign these rights to another entity.
3. In this case, the producer of the cinematograph film “Moodu Pani” assigned all the copyrights in the original song “En Iniya Pon Nilave” to the plaintiff, Saregama India Limited. Therefore, the plaintiff is the subsequent owner of the copyright in the literary and musical works of the original song.
4. Defendant No. 3, the music composer, did not have the right to issue any license to Defendant No. 1 regarding the musical work of the original song.
5. The court also observed that Defendant No. 3 is not the author of the literary work (lyrics) of the original song and therefore cannot claim any rights in it.
6. The court concluded that the defendants are illegally exploiting the plaintiff’s copyrighted works and taking benefit of the copyright owned by the plaintiff.

Observations on Adaptation: The court observed that the defendants’ use of the song cannot be considered an adaptation since they used the original lyrics and music composition of the song.

Balance of Convenience: The court noted that the balance of convenience lies with Defendant No. 1 since they have already invested significant money in recreating the song. The film “Aghathiyaa” was set for release soon, and restraining the defendants from using the song would cause substantial financial loss and disruption to their plans.

The court in its final direction allowed Vels International (defendant no 1) to use the song in their film, subject to depositing Rs. 30 Lac (approx. US $ 36,00) with the court, which will be held a deposit until the final adjudication of the case.