Delhi High Court: A plaint was filed by Novex Communications Private Limited (plaintiff), a well-established broadcasting and media solutions company, against Hyatt India Consultancy Pvt. Ltd. (defendants) who operate and manage several hotels under the brands “Hyatt” and “Andaz” seeking ex-parte ad interim injunction restraining the defendants from using its copyrighted sound recordings without obtaining the necessary authorization. Saurabh Banerjee, J., restrained the defendants, their partners, directors, their servants, officers, employees, agents, assignees, licensees, lessees, representatives, third party event management companies, third party event organizers or otherwise and/or any person claiming through them or acting on their behalf from using, playing, exploiting or publicly performing, or in any manner communicating the sound recordings of the songs assigned and lor authorized to the plaintiff or allowing their premises/ hotels or any premises under their control to be used for the said purposes in any event, party or function, as well other in-house uses in the venues/ events etc. of the defendants without license from the plaintiff, or otherwise infringing the copyright in any of the works owned or administered by the plaintiff, as updated from time to time.
The plaintiff, established in 2002, is a renowned name in the broadcasting and media sector, particularly in satellite channel distribution and music licensing. Over time, it expanded its services to include a vast repertoire of sound recordings, managing licenses for ground performances at venues like hotels, malls, and stadiums. The plaintiff holds rights over sound recordings from major music labels such as Zee Entertainment Enterprises, Tips Industries, Think Music, Red Ribbon Entertainment, and others. These rights were assigned to the plaintiff via formal agreements, giving it exclusive control over public performances of these sound recordings.
According to the plaintiff, several orders from the courts have been passed over the years, restraining other entities from using its sound recordings without proper licensing. However, the defendants, owners and managers of Hyatt and Andaz hotels, were found to be infringing upon these rights by using the plaintiff’s sound recordings without obtaining the required license. The plaintiff discovered that the defendants were playing copyrighted music at events held at their hotel, Andaz Delhi, and similar infringement was noted at other Hyatt properties across the country.
On 31-12-2023, the plaintiff observed that the defendants were using its sound recordings at a New Year’s event at Andaz Delhi. Despite several cease-and-desist notices sent by the plaintiff’s advocates, the defendants denied any wrongdoing. The plaintiff further issued rejoinders in July 2024 regarding similar infringements at Grand Hyatt Mumbai and Hyatt Regency Ahmedabad, urging the defendants to regularize the situation by obtaining the necessary licenses. However, the defendants failed to comply. Thus, the plaintiff filed the present suit seeking an injunction to prevent further infringement.
Counsel for the plaintiff argued that its rights over the sound recordings were indisputable, as they had been assigned via valid agreements with leading music labels. The defendants were fully aware of the plaintiff’s ownership of the sound recordings since they had previously obtained licenses from the plaintiff on multiple occasions. Yet, the defendants continued to use these recordings without proper authorization, deriving substantial commercial benefit from doing so. The plaintiff also submitted that such unauthorized use undermined the sound recording industry, which was already suffering due to widespread piracy and infringements. The defendants’ actions, according to the plaintiff, could dissuade other entities from acquiring proper licenses, further harming the plaintiff’s business. Counsel for the defendants denied the allegations and claimed that they had not infringed on any copyright.
The Court noted that the defendants were not new to the industry and were aware of the plaintiff’s ownership of the sound recordings. The Court observed that the defendants had previously obtained licenses from the plaintiff but had failed to do so in the present instance, thus violating the plaintiff’s copyright. The defendants were found to be benefiting commercially by using the plaintiff’s music at their venues without the requisite authorization.
The Court emphasized that allowing the defendants to continue this practice would amount to a clear infringement of the plaintiff’s rights. The plaintiff had successfully established a prima facie case, and the balance of convenience favored the grant of an injunction. The Court was also convinced that the plaintiff would suffer irreparable harm if the defendants were not restrained from further infringing upon its rights.
Thus, the Court granted an ex-parte ad interim injunction in favor of the plaintiff and restrained the defendants, along with their employees, agents, and third-party collaborators, from using or publicly performing the plaintiff’s sound recordings without a valid license. The defendants were further directed to ensure that all Hyatt and Andaz properties across the country comply with this order.
[Novex Communications Private Limited v. Hyatt India Consultancy Pvt Ltd., 2024 SCC OnLine Del 7076, decided on 09-09-2024]
Advocates who appeared in this case:
Mr. C. M. Lall, Sr. Advocate with Mr. Jasdeep Singh, Mr. Anirudh Jamwal, Mr. Abhinav and Ms. Ananya, Advocates for plaintiff
Mr. Vijay Singh, Advocate for D-1