Sumedh Kumar Sethi
Sumedh Kumar Sethi
Sumedh Kumar Sethi
com 115
Disclaimer All views expressed herein by the author are his own and not that of the
Government or any of its department. The author is grateful to Prof. M. Afzal Wani, University
School of Law & Legal Studies, Guru Gobind Singh Indraprastha University, Delhi for his
valuable guidance and suggestions.
CIVIL REMEDIES
The civil remedies for infringement of copyright are of two kinds:
preventive civil remedies, and
compensatory remedies
Interlocutory injunction
Injunction is the most important remedy against the copyright infringement.
Injunction means a judicial process by which one who is threatening to invade the legal
or equitable rights of another is restrained from commencing or continuing such act, or
is commanded to restore matters to the position in which they stood previous to the
action.
The copyright owner normally wants speedy and effective relief to prevent further
infringements of his copyright and further damage to his business and cannot afford
simply to wait for years until the full trial takes place. As a consequence, the law provides
interim relief to the plaintiff by way of grant of interlocutory injunction. The plaintiff who
gets an interlocutory injunction has tremendous advantage because the defendant is
stopped dead in his tracks. The grant of his remedy is within the discretion of the trial
court. The discretion exercised by the court is a judicial one which is governed by rules.
It is not arbitrary, vague and fanciful but legal and regular1
In United States, a standard four part test was setup in a case for granting an
interlocutory injunction:
Whether the plaintiff will have an adequate remedy at law or will be irreparably harmed
if the injunction is not issued.
Whether the threatened injury to the plaintiff outweighs the threatened harm the
injunction might inflict on the defendant.
Whether the plaintiff has at least as reasonable likelihood of success on the merits; and
Whether the granting of an interlocutory injunction will disserve the public interest.2
In United Kingdom, the usual approach was to consider whether the plaintiff has
made out a prima facie case of his copyright infringement, taking account of the apparent
merits of the defence that the defendant proposed to establish at the trial.3 If a prima facie
case was established, the court considers whether the balance of convenience lies in
favour of restraining the defendant until the trial or in leaving the plaintiff to recover
damages at the trial for any infringements by the defendant in the intervening period.4
The Courts in India have also relied upon a similar three pronged test for the
purpose of grating interlocutory or temporary injunction in such cases involving
infringement
Mareva injunction
There is a particular form of interlocutory injunction which is known as Mareva
injunction, the purpose of which is to restrain the defendant from disposing of assets
which may be required to satisfy the plaintiff or claim or removing them from the
jurisdiction of the court. Mareva injunction was granted in CBS v. Lambert5 where the
principal assets, however, were cars and the order including a provision requiring the
defendant to disclose their whereabouts. The prevention of disposal is not of much use if
the plaintiff cannot locate the assets when it comes to seek to enforce any final judgment
obtained. Therefore, such injunctions are usually sought ex parte.
In India, Copyright Act, 1957 provides the remedy of interlocutory injunction
against the infringement of copyright.6 Interlocutory injunction is granted under order
XXXIX. Rules 1 and 2 of the Code of Civil Procedure, 1908. The principles laid down in
English precedents are frequently relied upon and followed in India.
In Macmillan and Company Ltd. v K and J Cooper7, it was held that the plaintiffs have
made out a prima facie case for the issue of a temporary injunction under Order XXXIX.
Rule 2 of Civil Produce Code against defendant who brought out a book containing
selection from plaintiffs book. It was held in this case that there was a prime facie case
4 W.R. Cornish, Intellectual Property: Patents, Copyright, Trademarks and Allied Rights, p. 35-39 (London: Sweet
& Maxwell, 1989)
5 1983 F.S.R 127
6 Section 55, Copyright Act 1957.
7 A.I.R. 1924 P.C. 75.
for the issue of a temporary injunction. The injunction, of course holds good only during
the pendency of the proceeding before the trial court.8
It is settled law that in granting interlocutory injunction, three factors are taken
into consideration. First, the establishment of a prima facie case, second, the balance of
convenience in the favour of plaintiff and finally irreparable injury would be caused to
plaintiff if interlocutory injunction was not granted.
The relief of injunction is founded on equity and it cant be sought as a matter
of right. It is also liable to be refused where the court found that plaintiff had approached
it with unclean hands by suppressing material facts and had acted in an unfair and
inequitable manner.9 But where his claim appears to be bona fide, his rights would have
to be preserved pending adjudication of his claim in the suit because the purpose is to
mitigate injustice to him and avoid the possibility of his being non-suited.
The Supreme Court in Gujarat Bottling Company Ltd. v. Coca Cola Company10
observed: The decision whether or not to grant an interlocutory injunction has to be
taken at time when the existence of the legal right assailed by the plaintiff and its alleged
violation are both contested and uncertain and remain uncertain till they are established
at the trial on evidence. Relief by way of interlocutory injunction is granted to mitigate
the risk of injustice to the plaintiff during the period before that uncertainty could be
resolved. The object of the interlocutory injunction is to protect the plaintiff against injury
by violation of his right for which he could not be adequately compensated in damages
recoverable in his favour at the trial. The need for such protection has however, to be
protected against injury resulting from his having been prevented from exercising his
own legal right for which he could not be adequately compensated. The court must weigh
one need against another and determine where the balance of conveniences lies.
As the power to grant or refuse an ad interim injunction is discretionary, the
appellate courts normally do not interfere in the exercise of the discretion by the
8 G.G. Harrap and Co. Ltd. v. Hatbanshah Kalra, A.I.R. 1988 Delhi 68 at 70; see also Mirabai Films Pvt. Ltd. v, Siti
Cable Network and Others, 2003 (26) P.T.C. 473 (Del.) (D.B.) at 476.77
9 Media Transasia Ltd. & Another v. Indian Airlines Ltd. & Others, 2003 (26) P.T.C. 294 (D.B.) (Del.)
10 A.I.R. 1995 S.C. 2372.
subordinate court. The appellate court will not normally reassess the material on record
before that court and substitute its view to grant or refuse a temporary injunction. It will
also not disturb the order in this regard even where a contrary view or conclusion is
possible. But, at the same time, the appellate court will not hesitate to intervene where
the impugned order is found to have ignored the settled principles of Law regulating
grant or refusal of interlocutory injunction or where it proceeded on non- appreciation of
nature of controversy or the material on record.11
In Mirabai Films Pvt. Ltd v. Siti Cable Network and others12, the appellant was the
producer of the film Monsoon Wedding and respondents were cable television
operators providing cable television network, cable Internet access and other several
related services in several parts of the country through their associate/subsidiary
companies, distributors, franchisees, assignees, head ends and cable operators. The
appellant alleged that respondents were habitual offenders in telecasting pirated copies
of films and were out to do so in case Monsoon Wedding also and if not restrained, it
would cause irreparable injury and loss to the appellant. The court while granting
temporary injunction to the appellant held: we have no doubt that appellant had done
its part as it claims that it owned the films copyright and enjoyed its exclusive right to
deal with it, be that in its marketing, distribution or selling it or communicating it by
whatever means including through cable networks in the films or any right to indulge in
its exhibition or communication had gone uncontroverted in the absence of respondents
written statement. So has its plea that the balance of convenience was on its side and that
it would suffer irreparable loss and injury even by a single telecast of respondents and
their distributor, franchisees which could reach several lakhs of homes at one time.13
In Khajanchi Film Exchange and Another v. State of M.P. and others14, the appellant
alleged that producers have not released video rights of film Kabhi Khushi Kabhi Gam,
therefore, violation of copyright by illegal duplication of film and screening thereof
11 See Wander Ltd. v. Antox India Pvt. Ltd, 1991 PTC 1 (S.C.).
12 2003 (26) P.T.C. 473 Del. (D.B.)
13 Id. at 477.
14 2003 (26) P.T.C 183 (M.P.) (D.B.)
would cause them immense financial disadvantage. A writ petition was filed by
appellants seeking mandamus against 55 respondents. The M.P. High Court dismissing
the writ petition concluded that the film was released on December 14, 2001. Writ petition
was filed on November 28, 2001, 16 days before the release of the film. Appellants had
enough time to approach the authorities/police and later for the respondents giving their
reaction to the grievance and how it was ready to deal with matter. Therefore, unless the
demand was put across and reaction awaited for some time, moving the court was
premature and unsustainable.
In Barbara Taylor Bradford v Sahara Media Entertainment Ltd.15, the plaintiff sued
defendants for infringement of her copyright in 1979 best seller A women of substance.
The division Bench of Calcutta High Court while applying the ratio of Fraser v Euans16,
observed: . We do not know what the serials are going to be like; we do not know the
situations which will be shown. We do not know the scenes which will be displayed. We
do not know the details of storyline. All that we know is that one of the team of persons
engaged in production, which is quite a large team has said to a certain fishing journalist
that there are some characters which are as per the book of the plaintiff No. 1 and that the
serials have been based on the book and Indianised and adapted. This is simply not
enough.
The court held that the interlocutory application was premature. The plaintiff
would hardly suffer any loss of value of her book if 15 or 20 out of 800 episodes were
shown. If an injunction was obtained after 15/20 episodes, the plaintiff would get
practically full relief. Thus, the balance of convenience lay in favour of defendants.
In Prentice Hall India Pvt. Ltd. v. Prentice Hall lac. & others17 defendant no. 1 was the
owner of publications in question in which the plaintiff was seeking to claim copyright
without any individual agreements having been entered into. It was the case of owner
versus so called assignee of the copyright. The title of defendant no. 1 was not in dispute
whereas the copyright of the plaintiff was in dispute. The Delhi High Court held: ..
the grant of ad interim injunction in favour of the plaintiff at this stage would mean
decreeing the suit itself.
Acquiescence or delay on the plaintiffs part disentitles him to an interlocutory
injunction. In Media Transasta Ltd. & Another v. Indian Airlines Ltd. & Others18, the
appellants, inspite of possessing the information regarding respondents activities, did
not take immediate legal action. The suit was filed only towards the end of July, 2002 by
which time a new contract was born and third party rights had been created in favour of
respondent no. 3. The delay in filling the suit, therefore, proved fatal and interim
injunction was denied to the appellants.
The provisio to Section 55(1) of the Copyright Act, 1957 provides that if the
defendant proves that at the date of infringement, he was not aware and had no
reasonable ground for believing that copyright subsisted in the work, the plaintiff shall
not be entitled to any remedy other than an injunction in respect of the infringement and
a decree for the whole or part of the profits made by the defendant by the sale of the
infringing copies, as the court may in the circumstances deem reasonable.
In case if the work is very large and the pirated portion can be separated from the
unobjectionable portion, the pirated work will be stopped from publishing but where
pirated work cannot be separated from lawful work the court will not hesitate in granting
injunction to restrain the publication of the whole work.19
Permanent injunction: If the plaintiff succeeds at trial in establishing infringement
of copyright, he will normally be entitled to a permanent injunction to restrain future
infringements. This injunction will operate only during the unexpired term of copyright.
For the entitlement of the final injunction plaintiff need not prove actual damage.
If the plaintiff proves that his copyright has been infringed, the court will grant an
injunction without proof of actual damage. But at the same time the plaintiff must show
that there is a probability of damage, that this is not, simply trivial.20
In Hawkins Cookers Ltd. v. Magicook Appliances Co.21, the Delhi High Court granted
permanent injunction to the plaintiff by restraining defendants from dealing in any
manner, whatsoever with their cook books having passages reproduced from the cook
books of the plaintiff.
When can permanent injunction be refused?: Normally, the court will refuse
injunction in the circumstances where: (i) there is no evidence that the defendant has
done or threatens to do anything which would interfere with the enjoyment of any right,
vested in the plaintiff, or (ii) invasion of the right, if any, of the plaintiff, is of a theoretical
nature, which would at the most give the plaintiff at right to claim nominal damages, or
(iii) the injunction would inflict far more injury on the defendant than the advantage
which the plaintiff could derive from it.22
Anton Piller Orders: In certain cases, the courts in United Kingdom make orders ex
parte on the application of the plaintiff after a hearing in camera and in the absence of
defendant, permitting the plaintiff and his solicitor to inspect the defendants premises.
The order enables the plaintiffs solicitor to take possession of infringing copies and
documents and other relevant materials or require the defendant to keep infringing stock,
thus securing or preserving the evidence. The order is known as Anton Piller Order
named after one of the first reported cases in which such an order was made. 23
Anton Piller order is not a search warrant. It only authorizes entry and inspection
by permission of the defendant. Entry without defendants permission in defendants
premises would be a trespass. The defendant is, however, ordered by the court in
personam to give his permission with the result that if he doesnt do so, he is in contempt
of court, but the plaintiff is still not entitled to enter in the absence of permission.24
20 E.P. Skone James et. al., Copinger and Skone James on Copyright, p.340 (London: Sweet & Maxwell, 1991).
21 A.I.R 2003 Del. 191.
22 Satyawrat Ponkshe, The Management of Intellectual Property, p.305 (Pune: Bhat & Ponkshe Publication, 1991).
23 Anton Piller K.G. v. Manufacturer Processes Ltd. & Others, (1976) R.P.C. 719.
24 E.P. Skone James et. al., Copinger and Skone James on Copyright, p.332-33 (London: Sweet & Maxwell, 1991).
Conditions for making Anton Piller Order: An Anton Piller order is only made in the
most extreme circumstances. It is frequently accompanied by a Mareva injunction. The
combination of the two could have a drastic effect on the defendants business. Therefore,
three conditions must be satisfied before the court makes the order. These are:
The plaintiff must show that he was having an extremely strong prima facie case.
The plaintiff must show that he has suffered, or is likely to suffer very serious and
irreparable damage if an order is not made, and
There must be clear evidence that the defendant has in his possession incriminating
documents or things and that there is a real possibility of its being destroyed by defendant
before and after the inter partes application is made.
If the plaintiff or his solicitor misuses the order, the defendant is entitled to claim
damages from the plaintiff.25 The Anton Piller order survived its legality in a challenge
in the European Court of Human Rights in Chappell v. United Kingdom.26
position before the tort. If infringement is established, damages are presumed.28 Nominal
damages are always awarded where a legal right has been infringed irrespective of the
actual damage.29 Generally, the damages are for an amount that the defendant would
have paid had he got the licence from the copyright owner. Some more factors will also
taken into consideration to assess the damages, e.g., diminution of the sales of copyright
owners work, or the loss of profit which he might otherwise have made. The fact that the
pirated work may have injured the reputation of the copyright owner is also a fact that
may be taken into consideration in assessing the damages.30
Additional Damages: In United Kingdom, the court has power, having regard to all
circumstances and in particular to the flagrancy of the infringement and any benefit
accruing to the defendant by reason of the infringement, to award such additional
damages as the justice may require. Additional damages may also be rewarded where
the conduct of the defendant has been deceitful and treacherous. In addition, the injury
to the plaintiffs feelings and the indignities and distress the plaintiff the plaintiff has
suffered is also to be taken into consideration while granting additional damages. 31
In India, there is no provision in the Copyright Act, 1957 for the award of
additional damages in special circumstances such as flagrancy of the infringement or the
fortune reaped by the defendant by his misdeed. However, there is no bar for courts in
India to award exemplary or punitive damages in appropriate cases.
Delivery up: damages for conversion: Damages for conversion as defined by Lord
Atkin in Laneashire and Yorkshire Railway v. Mac Nicoll32, are damages for dealing with
goods in a manner inconsistent with the rights of the true owner, provided that it is also
established that there an intention on the part of the defendant, in so doing, to deny the
owners right, or to assert a right which is inconsistent with owners right.
In India, the Copyright Act, 1957 provides that all infringing copies of any work
in which copyright subsists and all plates used or intended to be used for production of
such copies shall be deemed to be the property of the owner of the copyright. It then
entitles him to take proceedings for the recovery of possession of the infringing copies
and plates or in respect of the conversion thereof.33
In a claim for damages for conversion it is a defence if the defendant proves that
at the time of conversion of infringing copies he was not aware and had no reasonable
grounds for believing that copyright subsisted in the work or that he had reasonable
grounds for believing that such copies do not infringe the copyright in the work.
The remedies of claiming recovery of possession of infringing copies or damages
for conversion thereof are not available in respect of the construction of a building or
structure which infringes or which, if completed, would infringe the copyright in some
other work.34 The remedies of damages for infringement of copyright and for conversion,
are cumulative and not alternative. The court may provide both the remedies in the
appropriate cases.
Account of Profits: As a corollary to the injunction, equity may, in appropriate cases,
require a defendant to account to a plaintiff for profits made from wrong doing such as
the infringement of copyright. Thus, the plaintiff is entitled to require the defendant to
account for the profits made by him by his infringement of formers copyright. This is not
a notional computation as with damages, but an investigation of actual accounts. The
account is of net profits, i.e., the sale price of infringing article as deducted by the
manufacturing and delivery cost. In Mohan Lal Gupta v. The Board of School Education,
Haryana35, the defendant was ordered to pay 20% of the profits to the plaintiff as the
matter copied was less than one tenth of the book.
A plaintiff is entitled to opt for damages or for an account of profits. He cannot
obtain both an account of profits and damages. The basis on which an account is ordered
is that there should not be any unjust enrichment of the defendant and that the defendant
should be deprived of any profit which he earned by wrongful acts committed in breach
of the plaintiffs right.36
The plaintiff would be refused an account of profits if there are no profits. In such
a case the plaintiff may elect to claim damages and he would be bound by an election
once made. The distinction between an account of profits and damages is that by the
former the infringer is required to give up his ill-gotten gains to the party whose rights
he has infringed whereas by the latter he is required to compensate the party wronged
for the loss he has suffered.37
Civil remedies under TRIPS Agreement
Unlike other treaties on intellectual property rights, the TRIPs Agreement lays
down comprehensive provisions for the enforcement of intellectual property rights. The
Agreement provides for civil, administrative and criminal remedies for the infringement
of intellectual property rights. The Agreement obliges Members to adopt procedures
concerning enforcement of intellectual property rights which should be fair and
equitable. Further, the procedures should not be unnecessarily complicated or costly, or
entail unreasonable time limits or unwarranted delays.38 The procedures shall not impose
overly burdensome requirements concerning mandatory personal appearances.
The TRIPS Agreement provides for the following remedies.
Injunctions: Article 44 of the Agreement provides that the judicial authorities in a
Member State shall have the authority to order a party to desist from an infringement.
Interalia to prevent the entry into the channels of commerce in their jurisdiction of
imported goods that involve the infringement of an intellectual property right,
immediately after customs clearance of such goods.
Provisional Measures: The judicial authorities in Member States shall have the
authority to order prompt and effective measures:
36 E.P. Skone James et. al., Copinger and Skone James on Copyright, p.353 (London: Sweet & Maxwell, 1991)
37 Arvind Laboratories v VA Samy Chemical Works, 14 P.T.C. 1994 Mad 223.
38 Article 41(2), TRIPs Agreement.
The judicial authorities in the Member States have the authority to dispose of
infringing good outside the channels of commerce in such a manner as to avoid any harm
caused to the copyright owner without making any provision for the compensation of
any sort. The infringing goods may also be destroyed if this is not contrary to the existing
constitutional requirements. The materials and implements the pre dominant use of
which has been in the creation of the infringing goods may also be disposed of outside
the channels of the commerce in such a manner as to minimize the risks of further
infringements. The courts shall take into account the need for proportionality between
the seriousness of the infringement and the remedies ordered as well as the interests of
the third parties while making any such order.41
ADMINISTRATIVE REMEDY
In order to prevent importation of infringing copies in India, the Copyright Act,
1957 makes available an effective and quick administrative remedy to the owner of
copyright. Section 53(1) of the Act empowers the Registrars of copyrights to make an
order prohibiting the importation into India of copies of a copyrighted work made
outside India which, if made in India, would infringe copyright in the work, on the
application of the owners of copyright in such work, or his duly authorized agent, after
making such inquiry as he deems fit.
The issue of importation into India of the infringing copies of the work protected
by copyright came before Supreme Court in Gramophone Company of India Ltd. v.
Birendra Bahadur Pandey and Others42. The appellant in this case, the Gramophone
Company of India Ltd., was the owner of copyright in musical records and cassettes. The
appellant received information from the customs authorities at Calcutta that a
assignment of pre-recorded cassettes sent by Universal Overseas Private Ltd., Singapora
to M/s Sungawa Enterprises, Kathmandu, Nepal had arrived at Calcutta port by ship
and was awaiting dispatch to Nepal. Due to broken condition of the consignment which
was lying in the Calcutta docks, the appellant learnt that a substantial number of cassettes
were pirated works.
The appellant sought intervention of the Registrar of copyrights in action under
Section 53 of the Copyright Act, 1957. As the Registrar was not taking expeditious action
on the application of the applicant and as it was apprehended that the pirated cassettes
would be released for transportation to Nepal, the appellant filed a writ petition in the
Calcutta High Court seeking a writ in nature of mandamus to compel the Registrar to
pass an appropriate order under Section 53 and to prevent release of the cassettes from
the custody of the custom authorities.
Section 53(2) of the Act empowers the Registrar of copyrights, or any person
authorised by him in his behalf to (a) enter any ship, dock or premises where any such
copies as are referred to in Section 53(1) may be found, and (b) examine such copies. The
purpose of the above provision is to determine whether or not such copies infringe the
copyright in the work of the applicant. Rule 23 of the Copyright Rules, 1958 requires the
Registrar or any person authorized by him in this behalf to take action under Section 53(2)
in collaboration with customs authorities.
All copies of the work to which the order of the Registrar applies shall be deemed
to be goods of which the import has been prohibited under Section 11 of the Customs
Act. 1962 and all provisions of that Act shall have effect accordingly. Section 11 of the
Customs Act, 1962 provides interalia that if the Central Government is satisfied that it is
necessary for the protection of patents, trade marks and copyrights, it may prohibit
absolutely or subject to conditions, prohibit the import or export of goods of any specified
description.
Under Section 110 of the Customs Act, 1962, if the proper officer has reason to
believe that any goods are liable to confiscation under the Act, he may seize such goods.
However, where it is not practicable to seize any such goods, the proper officer may serve
an order on the owner of the goods that he shall not remove, part with, or otherwise deal
with the goods except with prior permission of such officer. It is mandatory to give a
notice of the seizure of the goods to the owner of goods within six months; otherwise the
goods shall be returned the person from whose possession they were seized. However,
the period of six months may be extended by another period of six months if sufficient
cause is shown. Under Section 111 (d), any goods which are imported or attempted to be
imported or are brought within the Indian customs waters for the purpose of being
imported, contrary to any prohibition imposed by law shall be liable to confiscation. The
pirated copyright goods are covered under this provision.
All infringing copies confiscated under Custom Act shall not vest in the
government but shall be delivered to the owner of the copyright in the work.43 However,
importation of one infringing copy of the work is allowed for the private and domestic
use of the importer.44
The remedy available to copyright owner under Section 53 is different from and
in addition to the civil remedy available for the infringement of copyright under Section
55. The remedy available under Section 53 of the Act is quasi judicial in nature as an
appeal can be made to the Copyright Board against the order of Registrar under Section
72 of the Copyright Act.
in the country from which they were exported. The important point is that the work
should enjoy legal protection in the country where copies of the work are being imported.
The seizure shall take place in accordance with the legislation of each country
according to Article 16(3). The remedies, therefore, may be civil, criminal or
administrative. All sanctions for infringers are left to national legislations.
Administrative remedies under TRIPs Agreement
The TRIPs Agreement provides that Member States shall comply with Articles 1
to 21 and the Appendix of the Berne Convention.45 Thus, Article 16 of the Berne
Convention, as discussed above finds a place in the TRIPs Agreement. Apart from this
Section 4 of the TRIPS Agreement which provides for Special Requirements Related to
Border Measures and consists of Article 51 and 60, recognizes the role of custom
authorities to curb infringement of copyright. Thus, specific obligations have been
imposed on Members to institute and enforce border measures to prevent infringement
of copyright. These border measures, however, are not to be applied between the
Members of a custom union46 such as EU or where the imported goods put are on market
by or with consent of the right-holder or where the goods are in transit.47 The position is
in conformity with Article 6 of TRIPs Agreement which refers to the issue of exhaustion.
The provision laid down in the TRIPs Agreement regarding enforcement of
intellectual property rights are minimum basic procedural regulations to achieve
effectiveness in the enforcement of copyright.
Article 51 of the TRIPs obliges Member States to adopt procedures to enable a right
holder, who has valid grounds for suspecting that the importation of pirated copyright
goods48 may take place, to lodge an application in writing with competent authorities,
administrative or judicial, for the suspension of the release into free circulation of such
goods by the custom authorities. The right holder shall be required to provide adequate
evidence to satisfy the competent authorities, administrative or judicial, for the
suspension of the release into free circulation of such goods by the custom authorities.
The right holder shall be required to provide adequate evidence to satisfy the competent
authorities that there is prima facie an infringement of his copyright.49 The custom
authorities, upon receipt of the said notice and on being satisfied after making necessary
enquiry as it deems necessary, shall suspend the goods for a period of ten days from the
date of limitation to the right holder about the action taken. The Agreement further
provides that the above period may be extended by another ten days on reasonable
grounds. In the event of the right holder not informing the customs authorities that
proceedings leading to a decision on the merits of the case have been initiated, the later
shall release the goods detained.50
The right holder shall be given sufficient opportunity to have any goods detained
by the custom authorities inspected in order to substantiate his claims. 51 The competent
authorities may also take suo motu actions to suspend the release of goods in respect of
which they acquired prima facie evidence that an intellectual property right is infringed.
For this purpose, competent authorities may at any time seek any information from the
right holder to exercise these powers and both the importer and the right holder shall be
promptly notified of this suspension.52
Article 53 and 56 of the Agreement provide for adequate security as indemnity
to be furnished by the right-holder to protect defendant, importer, consignee, and the
owner of goods when it notifies customs authorities for taking action at the border to
detain infringing copies. Competent authorities in Member States shall have the authority
to order destruction or disposal of infringing goods outside the channels of commerce.
The defendant, however, shall have right to seek judicial review of such order.53
The principle of de minimis finds a place in the TRIPs Agreement. The infringing
goods in smaller quantity meant for personal use of a traveller need not to be seized or
confiscated by the custom authorities.54 It is noteworthy that the Copyright Act, 1957
permits importation of only one infringing copy of any copyrighted work for private and
the domestic use of the importer.55
India's IPR regime "to foster creativity and innovation," indicates that it might have put
the interests of intellectual property owners, or global capital above that of public.59
Not only this, the recently leaked Intellectual Property chapter of the Regional
Comprehensive Economic Partnership has garnered much attention worldwide. Given
the imminent negotiations over the free-trade agreement between India and 15 other
Asia-Pacific countries, the leaked draft gives a direct insight into the stand that
participating countries would be taking over IP protection. The provisions relating to
copyright protection require deliberation, since they call for stringent measures, in excess
of Indias current IP law obligations under the WTO. Under the RCEP, each party must
ratify or accede to the WIPO Copyright Treaty (WCT) and the WIPO Performances and
Phonograms Treaty (WPPT).60 These remedies are targeted at especially countering
online piracy which the traditional remedies are powerless to check.
CRIMINAL REMEDIES
The owner of copyright can take criminal proceedings against infringer. The
criminal remedy is distinct and independent of other remedies and can be availed
simultaneously to stop further infringement and punish the infringer. The pendency of a
civil suit does not justify the stay of criminal proceedings in which the same question is
involved. In addition, a criminal complaint cannot be dismissed merely on the ground
that the dispute is civil in character.61
Criminal remedies are more effective than civil remedies because the former can
be disposed of quickly. In addition, criminal proceedings directly strike at the honour
and social status of an infringer, as a consequence of which sometimes he comes for a
59 See, Sunil Mani, Not Based on Evidence: New IPR Policy 2016: Commentary, Vol. 51, Issue No. 38, 17 Sep,
2016 Economical & Political Weekly Journal, available at
http://www.epw.in/journal/2016/38/commentary/new-ipr-policy-2016.html.
60 Devika Agarwal & Radhika Agarwal, Needless Pressure to Change Copyright Laws, May 4, 2016, The
Hindu: Business Line, available at http://www.thehindubusinessline.com/opinion/needless-pressure-to-
change-copyright-laws/article8557036.ece.
61 V.S. Sharma v Dharma Rao, A.I.R. 1942 Mad. 124.
settlement out of court to save his prestige. Knowledge or mens rea is an essential
ingredient of the offence.
Section 63 to 70 of the Act deal with offences relating to copyright. Section 63
makes it an offence for any person knowingly to infringe:
the copyright in a work; or
any other right conferred by the Act (except the resale share right in original copies as
provided by section 53A) or knowingly to abet such infringement.
It is, however, clarified that the construction of a building or other structure which
infringes or which, if completed would infringe the copyright in same other work is not
an offence and therefore not punishable.
The offence of an infringement of copyright is punishable with imprisonment for
a term which shall not be less than six months but which may extend to three years and
with fine which shall not be less than Rs. 50,000/- but which may extend to Rs. 2 lakhs.
The court has discretion to reduce the minimum term of imprisonment and the minimum
fine for adequate and special reasons where the infringement has not been made for gain
in the course of trade or business. For the second and subsequent convictions, the
minimum term of imprisonment is enhanced to one year and minimum fine to Rs.1 lakh
which may be relaxed for adequate and special reasons to be mentioned in the judgment
where the infringement was not made for gain in the course of trade or business. There
is, however, no change in the maximum punishment.62
The offence under section 63 of the Copyright Act, 1957 is a non bailable offence.
The provisions of section 438 of the Criminal Procedures Code, can, thereof, be applied
in respect of offence punishable under section 63 of the Act.63
an offence, under which the offender is punishable with imprisonment for a term which
shall not be less than seven days but which may extend to three years and with fine which
shall not be less than Rs. 50,000/- but which may extend to Rs. 2 lakhs. However, where
the computer programme has not been used for gain or in the course of trade or business,
the court for adequate and special reasons to be mentioned in the judgment, not impose
any sentence of imprisonment and may impose a fine which may extend to Rs. 50,000/-
were ample remedies available in the appropriate courts and he aggrieved person was
always free to safeguard his interest in that respect be restoring to the legal remedies. The
power given to the police officer was not at all arbitrary.66
66 Id. at 84.
67 Section 66, Copyright Act, 1957.
68 (1996) 6 S.C.C. 409.
particulars on video films, etc. as mandated under Section 52-A did not find place, it
would be infringement of copyright.69
69 Id. at 415.
been considered to create equilibrium between the rights of copyright owner to generate
a profit for their work and the benefit to society of learning from and building upon their
works. The traditional principles of copyright, like the fair use doctrine, were developed
towards this end. With the advent of Information and Communication Technology
revolution these traditional principles are losing their relevance. This Digital
transmission technology is posing a major problem to copyright laws in the form of the
Internet. To counter this, there is a wholesale transformation of copyright laws with the
adoption of many layers of protections in the form of technological protection
measures and through contract laws in addition to the copyright laws. This may tilt the
balance in favour of the copyright owners. However, in an effort to set up a strict regime
against infringement, the just exceptions to such protection must not be forgotten.
CONCLUSION
An ideal regime for copyright protection would balance the rights of all
stakeholders. On one hand, India faces major economic losses due to rampant piracy,
especially online; on the other hand, the peculiar socio-economic conditions of the
country make it imperative to overlook IPRs to an extent for the greater common good.
In these circumstances, perhaps the stress should be on effective implementation of the
existing remedies rather than introducing new remedies over and above the existing
provisions, so that the genuine exceptions to IPRs are not whittled down. With the
paradigm shift in the legal regime governing the subject in India, it remains to be seen
how such a balance continues to exist.