{"id":10354,"date":"2022-01-31T04:42:02","date_gmt":"2022-01-31T04:42:02","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=10354"},"modified":"2022-01-31T04:43:30","modified_gmt":"2022-01-31T04:43:30","slug":"novex-copyright-infringement-case-against-dxc-pvt-ltd-and-cognizant-india-pvt-ltd","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/novex-copyright-infringement-case-against-dxc-pvt-ltd-and-cognizant-india-pvt-ltd\/","title":{"rendered":"Novex Copyright Infringement Case Against DXC Pvt. Ltd. and Cognizant India Pvt. Ltd."},"content":{"rendered":"\n<p class=\"has-drop-cap\">In\nthe matters of Novex Copyright Infringement case against DXC Pvt. Ltd. and\nCognizant India Pvt. Ltd., the Learned Single Judge of the Madras Hugh Court\npassed a judgment on December 08, 2021 (Decision) holding that Novex\nCommunications Pvt. Ltd. is barred from carrying on the business of issuing\nlicenses regarding sound recordings. Scroll down to check more information\nregarding the Novex Copyright Infringement case.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a558bb943ba5\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a558bb943ba5\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/novex-copyright-infringement-case-against-dxc-pvt-ltd-and-cognizant-india-pvt-ltd\/#Factual_Background_of_Novex_Copyright_Infringement_case\" title=\"Factual\nBackground of Novex Copyright Infringement case \">Factual\nBackground of Novex Copyright Infringement case <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/novex-copyright-infringement-case-against-dxc-pvt-ltd-and-cognizant-india-pvt-ltd\/#Findings_and_Decision_%E2%80%93_Novex_Copyright_Infringement_Case\" title=\"Findings and\nDecision &#8211; Novex Copyright Infringement Case \">Findings and\nDecision &#8211; Novex Copyright Infringement Case <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/novex-copyright-infringement-case-against-dxc-pvt-ltd-and-cognizant-india-pvt-ltd\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Factual_Background_of_Novex_Copyright_Infringement_case\"><\/span>Factual\nBackground of Novex Copyright Infringement case <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Novex\nfiled lawsuits against DXC Pvt. Ltd. and Cognizant India Pvt. Ltd. (Defendants)\nfor Copyright Infringement concerning Sound Recordings before the Court. Novex\nclaimed it has the right to restrain the defendants from exploiting the\nrecordings without its consent as it&#8217;s an owner or duly authorised agent of the\non-ground performance rights (Rights) in the Sound Recordings.<\/p>\n\n\n\n<p>The\nDefendants raised an initial objection that since Novex is not registered as a\nCopyright Society, it cannot carry on the business of granting licensing\nregarding Sound Recordings, according to the particular bar under Section 33(1)\nof the Copyright Act, 1957, as changed from time to time (Act), which inter\nalia gives that no individual or person shall carry on the business of granting\nlicenses concerning any work in which Copyright subsists. According, the Court\nframed this as an initial issue for determination.<\/p>\n\n\n\n<p>Novex\ninter alia contended that it has the exclusive right to restrain that\nDefendants (DXC Pvt. Ltd. and Cognizant India Pvt. Ltd.) as, either by the\nambit of <strong><em>Section 18(2) of Act <\/em><\/strong>(which provides or offers that an assignee\nshall be treated as the rights&#8217; owner so assigned) &amp; the Assignment\nAgreements entered between Novex and Sound Recordings\u2019 owner. Hence, according\nto Section 30 of the Act, which allows a Copyright owner either by himself or by\ntheir duly authorised agent of the owners of the Sound Recordings is eligible\nfor issuing license and claim royalties from the Sound Recordings\u2019 users.&nbsp; <\/p>\n\n\n\n<p>Moreover,\nNovex contended that the bar under <strong><em>Section 33(1) of the Act<\/em><\/strong>, which\nprovides that a company cannot involve in the licensing business unless it is\nregistered as a Copyright Society, doesn&#8217;t apply to Novex in view of 1<sup>st<\/sup>\nproviso to <strong><em>Section 33(1)<\/em><\/strong> which carves out an exception allowing Copyright\nowners to involve in licensing in their individual capacity. Further, Novex\ncontended that according to Section 34 of the Act, joining a Copyright Society\nis completely optional and that the right to issue licenses cannot be made\ncontingent upon the owner being any Copyright Society&#8217;s member. Hence, a complete\nreading of <strong><em>Section 18(2), 30, 1<sup>st<\/sup> proviso to Section 33(1) and Section\n34 of the Act<\/em><\/strong> makes it evident or clear that Novex has the right to\nstop or avoid the Defendants from exploiting the Rights in the Sound Recordings\nwithout its consent.<\/p>\n\n\n\n<p><strong><em>In\nresponse, the Defendants inter alia contended or argued that:<\/em><\/strong><\/p>\n\n\n\n<ul><li>The <strong><em>2<sup>nd<\/sup> provision to\nSection 33(1) of the Act<\/em><\/strong> inter alia tells that only a registered\nCopyright Society can run the business of issuing or granting licenses\nconcerning dramatic, artistic, literary, and musical works incorporated in a\nsound recording or film. Hence, Novex, not be registered Copyright Society, was\nbarred from carrying on the business of issuing licensing concerning the rights\nin the Sound Recordings.<\/li><li>Novex is only the owner of\nRights in the Recordings and not the Sound Recordings as a whole, and hence, it\ncannot take benefit of <strong><em>Section 30 of the Act<\/em><\/strong>, which only\nentitles an owner of a work and no rights in the work issue licenses.<\/li><li>Defendants relied upon the\nlegislative intent &amp; purpose of Section 33 of the Act, as changed by the\n2012 amendment, which according to the Defendants, allows only a registered\nCopyright Society to involve in the business of issuing licenses.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Findings_and_Decision_%E2%80%93_Novex_Copyright_Infringement_Case\"><\/span>Findings and\nDecision &#8211; Novex Copyright Infringement Case <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nCourt broadly relied upon the speeches in the Parliament to collect the true\nintent and purpose of Section 33, which was to bring party between the\ndifferent owners in a sound recording. The Court observed or noted that an\nowner need not essentially join a Copyright Society &amp; that the 1<sup>st<\/sup>\nprovision to <strong><em>Section 33(1)<\/em><\/strong> makes it clear or evident that the right of an\nowner to grant the license in their individual capacity is unfettered subject\nto the rider that such right should be reliable with the obligation as a\nCopyright Society\u2019s member. <\/p>\n\n\n\n<p>But, once the issue of license moves from the owner of their individual capacity and exceeds into the domain of a business, Section 33(1) and\/or the 2<sup>nd<\/sup> provision applies. The Court observed that Section 33(1) of the Act mandates a company to be 1st registered as a <strong>Copyright Society<\/strong><sup><a href=\"https:\/\/copyright.gov.in\/\" class=\"text-primary\"><strong>[1]<\/strong><\/a><\/sup> before it comes into the business of granting the license. On the contention of Norvex that it was allowed to issue licenses as per Section 30&nbsp; and as per 1<sup>st<\/sup> provision to Section 33(1) of the Act, the Court observed or noted that the same applied only to the Copyright&#8217;s owners in their individual capacity, and not to a company, like Novex, which is involved in the licensing business. The Court delved into the business word used in Section 33(1) and also observed\/noted that this provision clamps or pins a prohibition on the Copyright Licensing business except via Copyright Societies. Further, the Court observed that it was not possible to accede to the contention of Novex as the same would <em>de hor<\/em> the drives of 2012 amendment made to the Act.<\/p>\n\n\n\n<p>The\nCourts observed that Section 33 (1) &amp; its 2<sup>nd<\/sup> proviso, which\nspecifically provides that the licensing business shall be carried only via a\nregistered Copyright Society, clearly highlights that only Copyright Societies\nmay involve in the business of issuing licenses.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In the view of the Novex Copyright Infringement Case, the Court held that Novex doesn&#8217;t come under the vision of <strong><em>Section 30 of the Act, <\/em><\/strong>and since it\u2019s in the <a class=\"text-primary\" href=\"https:\/\/swaritadvisors.com\/copyright-registration\"><strong>Copyright Licensing<\/strong><\/a> business, it was barred from granting licenses for the exploitation of Rights in the Sound Recordings in the view of Section 33 (1), especially 2<sup>nd<\/sup> proviso thereof.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our Article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/difference-between-copyright-free-and-royalty-free\/\">Difference Between Copyright Free and Royalty Free \u2013 An Overview\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the matters of Novex Copyright Infringement case against DXC Pvt. Ltd. and Cognizant India Pvt. Ltd., the Learned Single Judge of the Madras Hugh Court passed a judgment on December 08, 2021 (Decision) holding that Novex Communications Pvt. Ltd. is barred from carrying on the business of issuing licenses regarding sound recordings. Scroll down [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":10356,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[19],"tags":[972],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/10354"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=10354"}],"version-history":[{"count":14,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/10354\/revisions"}],"predecessor-version":[{"id":10369,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/10354\/revisions\/10369"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/10356"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=10354"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=10354"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=10354"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}