Media and Entertainment Law in India: A Comprehensive Overview, Study notes of Media Management

Download Media and Entertainment Law in India: A Comprehensive Overview and more Study notes Media Management in PDF only on Docsity!

IN-DEPTH

Media And

Entertainment Law

INDIA

Media and

Entertainment Law

EDITION 5

Contributing Editor

Benjamin E Marks

Weil Gotshal & Manges LLP

In-Depth: Media and Entertainment Law (formerly The Media and Entertainment Law Review) is a practical overview of the legal and regulatory frameworks governing the media and entertainment industry – including print, broadcast and online – in major jurisdictions worldwide. With a focus on prominent recent trends and developments, it examines issues including free speech and media freedom; IP rights; competition and consumer rights; common contractual disputes; and much more.

Generated: December 13, 2023

The information provided in this publication is general and may not apply in a speci’c situation, nor does it necessarily represent the views of authorsA ’rms or their clients. Legal advice should always be sought before taking any legal action based on the information provided. The publishers accept no responsibility for any acts or omissions contained herein. 2lthough the information provided was accurate as at November 0q00, be advised that this is a developing area. En@uiries concerning reproduction should be sent to customersuccessBlexology.com. En@uiries concerning editorial content should be directed to the Content Director, Clare 9olton – clare.boltonBlbresearch.com. Explore on Lexology

Introduction India is one of many of the epicentres of media and entertainment activities in the world. Content is created and made available to people in diverse forms, languages and media. On an aggregate basis, the Indian media and entertainment industry is projected to grow at a rate of 11.5 per cent in 2023 to reach US$29.2 billion. [ 2 ] Several factors such as low pricing for mobile internet services, [ 3 ] a large internet user base [ 4 ] and a government-led push towards adoption of technology by the masses have enabled India to become a large market for consumption of digital content and entertainment services. With the recent infusion of artificial intelligence (AI)-based technology in the global market, the global media and entertainment landscape is expected to undergo a shift in content creation and consumption. Changes in government policy towards regulation of technology have tracked these recent technological advances. Over the past year, the government of India (GOI) has brought significant changes in laws including:

1. the Digital Personal Data Protection Act 2023 (Indian Data Protection Law) for regulation of collection, processing, and transfer of digital personal data;
2. the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) 2021 (IT Rules 2021) to regulate streaming platforms, social media intermediaries and online gaming platforms; and
3. amendments to the Cinematograph Act 1952 to safeguard against film piracy and prescribe certification of films. The Securities and Exchange Board of India (SEBI) has sought to regulate the activities of 'financial influencers'. [ 5 ] Similarly, the Ministry of Consumer Affairs has commenced consultation with stakeholders on 'Guidelines on Prevention and Regulation of Dark Patterns', to regulate user interface or user experience design choices that may mislead consumers. [ 6 ] The GOI has also initiated consultations to replace the Information Technology Act 2000 (IT Act) with the Digital India Act (DIA). The DIA would overhaul the technology regulation framework and would focus on intermediary liability, regulation of activities on the internet through the perspective of user-harm, regulation of AI and providing users with digital rights. [ 7 ] Year in review As noted above, the media and entertainment sector is reviving and eclipsing pre-covid levels. Along with this, the industry is undergoing a dynamic shift towards the digital medium. The industry appears to be moving towards general consolidation, with mergers and acquisitions, such as the amalgamation of Zee Entertainment Enterprises Limited with Culver Max Entertainment Limited, as mentioned above.

In the music industry, a key dispute arose between Recorded Music Performance Limited (RMPL) and Phonographic Performance Limited (PPL). While PPL's application to renew its status as a registered copyright society was pending, RMPL was granted registration. Given that the Copyright Act does not ordinarily permit more than one society to be registered for administering the same category of works – in this case, sound recordings

• both PPL and RMPL may not be granted registration. The court has currently ordered the GOI to re-look at PPL's application while permitting RMPL to act as a copyright society until the dispute is resolved. In the film industry, recognising the menace of rampant piracy, the government introduced more stringent regulation of piracy under the Cinematograph Act. Further, the emergence of AI has posed several challenges in relation to personality rights because of the increased prevalence of illegal activities such as deepfakes. Such deepfakes are also being used to incite violence and steer political discourse. Notably, two Indian actors have secured favourable omnibus injunction orders against the use of their name, persona, likeness, voice and eponymous catchphrase. [ 8 ] One of the most notable developments in the media and entertainment sector has been in the field of online gaming. While on the one hand real money online games were granted legitimacy as a result of the recent amendment to the IT Rules 2021 regulating online gaming intermediaries, the question around legality of games of skill versus games of chance across various Indian states remains unaddressed. Further, the GST council's recommendation to impose a tax on the full bet value (instead of the platform fee) and the imposition of 30 per cent tax deducted at source on the winnings of users has come as a huge blow to the gaming industry in India. Legal and regulatory framework

i Print media

Foreign direct investment in the print sector Under the Foreign Exchange Management (Non-Debt Instruments) Rules 2019 notified under the Foreign Exchange Management Act 2000 (Exchange Control Laws), foreign investment in the print media sector has been capped at 26 per cent through the GOI-approval route where investment is made in an entity publishing newspapers, magazines, or any other periodicals (collectively, periodicals) which (1) deal with news and current affairs content; and (2) are Indian editions of foreign magazines dealing with news and current affairs content. However, 100 per cent foreign investment is permitted through the GOI approval route for any periodicals which are in the nature of: (1) scientific and technical magazines, journals or periodicals (technical periodicals); or (2) facsimile editions of foreign newspapers. Exchange Control Laws also stipulate that foreign investment in publication of Technical periodicals requires compliance with guidelines issued by the Ministry of Information and Broadcasting (MIB) for technical periodicals. [ 9 ]

Self-regulation In addition to statutory regulation, industry stakeholders have also formed self-regulatory bodies for industry representation. For example, the Association of Indian Magazines is an industry body of magazine publishers and represents the interests of its stakeholders on various forums.

ii Broadcast media

The broadcasting sector is regulated by the (a) MIB; and (b) Telecom Regulatory Authority of India (TRAI). The MIB regulates broadcasters and cable service providers, content, uplinking and downlinking of television channels, and provides compliance requirements for entities with foreign investment in the broadcasting sector. The TRAI makes regulations on quality of service, revenue sharing among service providers, and inter-connect agreements by broadcasters and distributors. The key Regulations for broadcasting on television are the Cable Television Networks Act 1995 (Cable TV Act), the Policy Guidelines for Uplinking and Downlinking of Satellite Television Channels in India 2022 (Uplinking and Downlinking Guidelines 2022) [^13 ]^ and medium-agnostic laws as set out in Section II.iv. Foreign direct investment in the broadcasting sector The maximum foreign investment permitted in the terrestrial broadcasting and radio broadcasting sector is 49 per cent under the GOI-approval route and requires compliance with terms and conditions specified by the MIB for the setting up of radio stations in India. Foreign investment in entities engaged in: (1) the uplinking of news and current affairs television channels has been capped at 49 per cent through the GOI-approval route; and (2) the uplinking of non-news and current affairs television channels and downlinking of television channels is allowed up to 100 per cent through the automatic route. Additionally, foreign investment in the broadcasting sector requires compliance with the additional conditions, which, inter alia, include:

1. security clearance of:

• board members and key executives;
• shareholders holding 10 per cent or more of the paid up capital in the entity; and
• foreign personnel deployed for more than 60 days;

2. a majority of the board of directors and certain key personnel being citizens of India;
3. restrictions on transfer of subscribers' databases to persons and places outside India; and
4. providing the necessary equipment for monitoring the broadcaster's activities to the governmental authorities. [ 14 ]

Television broadcasting The Cable TV Act provides rules pertaining to registration of cable television network operators, mandatory transmission of certain programmes and programme and advertising content under the Cable Television Network Rules 1994 (Programme Code, Advertising Code). [ 15 ] Under the Programme Code, no programme is allowed to be transmitted through cable services which:

1. offends good taste or decency;
2. contains criticism of friendly countries;
3. attacks religions or promotes communal attitudes;
4. contains anything obscene, defamatory, false or suggestive innuendos;
5. could encourage or incite violence or contains anything against maintenance of law and order;
6. is in contempt of court;
7. casts aspersions against the integrity of the president of India, the judiciary or the country;
8. encourages superstition;
9. denigrates women or is likely to corrupt public morality;
10. contains visuals which reflect a slandering, ironical and snobbish attitude in portrayal of certain groups;
11. contravenes the provisions of the Cinematograph Act 1952; or
12. is not suitable for unrestricted public exhibition. Similarly, the Advertising Code, which governs transmission of advertisements on cable services, prohibits advertisements which:
13. deride any race, caste, colour, creed and nationality;
14. are against the Constitution of India;
15. incite people to crime, breach the law, or glorify violence or obscenity;
16. exploit the national anthem or personality of a national leader or state dignitary;
17. depict women in a derogatory manner or encourage them to play a subordinate role in society;
18. exploit social evils;
19. promote the sale or consumption of intoxicants (with the exception of legitimate brand extensions);
20. are of a religious or political nature; and
21. are in non-compliance with the Consumer Protection Act 2019 and the Advertising Standards Code of India (ASCI Code) and guidelines.

Foreign investment in the digital media sector As per the Exchange Control Laws read with Press Note No. 4 (2019 series) (PN 4) issued by the Department for Promotion of Industry and Internal Trade (DPIIT), foreign investment in uploading and streaming of news and current affairs through digital media is limited to 26 per cent under the GOI-approval route. Per a clarification issued by the DPIIT on 16 October 2020, the restriction under PN 4 applies to the following entities:

1. digital media entities streaming or uploading news and current affairs;
2. news agencies writing, gathering or distributing news and current affairs; and
3. news aggregators, that is, entities using software of web applications to aggregate news content from various sources, such as news websites, blogs, podcasts, video blogs, user submitted links, etc., in one location. The DPIIT subsequently also clarified that OTT platforms which merely host the digital feed of a television news channel do not fall within the ambit of the restriction. Information Technology Act 2000 Activities on the internet are regulated by the Ministry of Electronics and Information Technology (MEITY) and the MIB under the IT Act and the rules made thereunder. The IT Act is applicable to persons and activities outside India if the activity involves a person or 'computer resource' situated in India. [^20 ]^ The IT Rules 2021 set out the compliance and regulatory framework for intermediaries (including social media intermediaries, significant social media intermediaries and online gaming intermediaries), publishers of news and current affairs content and publishers of online curated content (i.e., over-the-top (OTT) content platforms). Compliance for intermediaries Under the IT Act, any platform that receives, stores or transmits electronic messages or provides services in respect of such messages on behalf of its users qualifies as an intermediary. Per Section 79 of the IT Act, intermediaries are entitled to safe harbour (i.e., exemption from liability for content made available through the intermediary) provided that: (1) the function of the intermediary is limited to providing access to the content shared by third parties; (2) the intermediary does not initiate, select the receiver of or modify the information during transmission; and (3) the intermediary undertakes due diligence prescribed by the GOI. Under the IT Rules 2021, an intermediary is required to comply with, inter alia, the following due diligence requirements:
4. prominently publishing its privacy policy, rules and regulations and user agreements (collectively, 'policies') on the platform;
5. informing users and causing users not to host, display or publish information that:

• belongs to third parties;
• is defamatory, obscene, pornographic, libellous, racially or ethnically objectionable or otherwise is non-compliance with applicable laws;
• is harmful to children;
• infringes the intellectual property rights of a third party;
• violates applicable laws;
• impersonates another person; and
• threatens the unity, integrity, defence, security or sovereignty of India;

3. informing users at least once a year that it has a right to terminate access to the platform or remove non-compliant information upon non-compliance with the terms of the platform; and
4. publishing details of the grievance redressal officer appointed by the intermediary along with the grievance redressal mechanism. Further, significant social media intermediaries (i.e., social media intermediaries with more than 50 million registered users) are required to also appoint a chief compliance officer, nodal contact person and resident grievance officer who should be employees and residents of India and comply with certain additional due diligence requirements. Compliance for publishers of news and current affairs and publishers of online curated content The IT Rules 2021 prescribe a three-tier grievance redressal mechanism for redressal of user grievances against publishers of online curated content (content publishers) and publishers of news and current affairs content (news publishers) involving: (1) self-regulation by the publisher; (2) redressal of grievances by a self-regulatory body; and (3) redressal by an inter-departmental committee constituted by the MIB. Accordingly, publishers are also required to appoint a grievance officer and become members of a self-regulatory body. Code of ethics Content publishers are, inter alia, required to classify all content made available on the platform into five categories:
5. A (for adult viewers);
6. UA 16+ (for users above the age of 16);
7. UA 13+ (for users above the age of 13);
8. UA 7+ (for users above the age of 7); and
9. U (for all age groups).

1. inform users within 24 hours of any change in its policies;
2. ensure that their policy sets out the rules in relation to withdrawal or refund of deposits, manner of distribution of winnings, manner of calculating winnings, payments of fees and charges;
3. implement a know-your-customer procedure;
4. implement a verification framework;
5. display demonstrable marks of verification of the game by a self-regulatory body; and
6. verify a user's identity prior to accepting a deposit. Fact-checking body The IT Rules 2021 empower the MEITY to constitute a fact-checking body to verify all information pertaining to the GOI on social media platforms. In the event content identified as fake by the committee is reported to the intermediary and the relevant intermediary fails to take down such content, it may lose its safe harbour protection. However, at the time of writing, the MEITY has not constituted the fact-checking body.

iv Medium agnostic laws

Other Indian legislation also applies to the media and entertainment sector regardless of the medium of distribution of content. For example, the Consumer Protection Act 2019 (CPA 2019), the Indian Penal Code 1870 (IPC), the Indecent Representation of Women Act 1986 (Representation of Women Act), the Protection of Children from Sexual Offences Act (POCSO Act) and legislation governing advertisements or depiction of specific products and themes in any content. [ 22 ] In respect of advertising content, the ASCI Code along with various guidelines are applicable to members of the Advertising Standards Council of India (ASCI). However, the ASCI Code and guidelines reflect broad industry practice. The ASCI is a self-regulatory organisation comprising stakeholders from the advertising sector such as advertisers, agencies and publishers. The ASCI Code is applicable to all members and comprises basic principles which relate to truthful and honest representation in advertisements, non-offensiveness of advertising content, prohibition against depiction of harmful products and situations, and competitive fairness in advertising. Apart from this, the ASCI Code comprises guidelines for advertisements relating to specific categories such as brand extensions, foods and beverages, endorsements by celebrities and influencers, advertising of real money games and virtual digital assets. ASCI operates the Consumer Complaints Council (CCC), a grievance redressal mechanism which handles complaints from the public, suo motu, and intra-industry disputes. Where the CCC finds a violation of the ASCI Code, the CCC has the power to issue recommendations for modifications or withdrawal of claims made in the advertisement. [ 23 ] Under the CPA 2019, any unfair trade practice comprising making false or misleading representations as to the quality, standard, condition, sponsorship or usefulness of goods or services, or any misleading advertisement or endorsement is prohibited and punishable.

Under the IPC, obscenity, acts in relation to racial, religious or gender discrimination, violence, abetment of suicide, and defamation are punishable. Under the Representation of Women Act, depiction of women in an indecent or derogatory manner is punishable. [ 24 ] Under the POCSO Act, anybody who uses a child (anybody below the age of 18 years) in any form of media for purposes of sexual gratification by representation of sexual organs of a child, usage of a child engaged in real or simulated sexual acts or indecent or obscene representation of a child, or both, is punishable. [ 25 ] Free speech and media freedom

i Protected forms of expression

The right to freedom of speech and expression is guaranteed to all Indian citizens as a fundamental right under Article 19(1)(a) of the Constitution of India. However, freedom of speech and expression is subject to reasonable restrictions set out in Article 19(2), which are:

1. the sovereignty and integrity of India;
2. the security of the state;
3. friendly relations with foreign states;
4. public order;
5. decency or morality or in relation to contempt of court; and
6. defamation or incitement to an offence. These grounds serve as the basis for judicial interpretation of all legislation and subordinate legislation notified by the GOI which aim at ensuring that the right of freedom of speech and expression is exercised within the aforesaid framework. While 'speech' is not classified in further categories under any Indian statutes, Indian courts have analysed the concept of 'commercial speech'. Commercial speech is generally understood by Indian courts as speech which proposes a commercial transaction or is an expression of economic interest of a speaker to its audience. The Supreme Court stated in the case of Tata Press v. MTNL , [ 26 ] that advertisements and 'commercial speech' is also protected under Article 19(1)(a) of the Constitution of India. [ 27 ] As such, commercial speech or advertisements are also subject to the same restrictions as set out in Article 19(2) of the Constitution of India.

ii Hate speech

While Indian laws do not specifically define hate speech, certain provisions of the IPC can be invoked when dealing with cases of hate speech. The IPC prescribes punishment for:

1. deliberate and malicious acts, intended to outrage religious feelings of any class;

3. compromises commercial or intellectual property;

4. exists within a fiduciary relationship;

5. is received confidentially from a foreign government;

6. endangers someone's life or law enforcement sources;

7. impedes criminal investigations;

8. involves cabinet deliberations; or

9. relates to personal information as defined under the Indian Data Protection Law.

v Protection of sources

While there are no legally enumerated rights, privileges or duties to protect sources in India, the Whistleblower Protection Act 2014 (Whistleblower's Act) protects persons disclosing corruption, wilful misuse of power or discretion against any public servant. The disclosure is required to be made before a 'competent authority' and such competent authority would conduct an inquiry as per Section 5 of the Whistleblower's Act. The act also provides for safeguards against victimisation, disclosure of identity of the whistleblower, and witness protection. The Norms of Journalistic Conduct set out an exception to the disclosure of sources in cases of 'serious allegations where matter is related to national interest and security'. [ 31 ] In Jai Parkash Aggarwal v. Vishambhar Dutt Sharma , [^32 ]^ it was held that while 'journalists or the information media have no absolute immunity or obligation to disclose their source of information in court... before the Court directs the disclosure of source it must satisfy itself that it is in the nature of justice and is not against the public interest'. In the same vein, a court in Delhi recently gave an order to the effect that journalists are not exempt from disclosing their sources to investigating agencies of the GOI. [ 33 ]

vi Private action against publication

A wide variety of legal remedies are available to persons to initiate private actions against publication. Under the IPC, defamation is a punishable offence. The essentials for proving a claim for defamation include: (1) publication of the statement; (2) the statement must be defamatory; and (3) the statement must refer to the complainant or plaintiff. The punishment for defamation, publishing and sale of defamatory material of imprisonment up to two years, a fine or both. However, defamation can be pursued as a civil remedy under common law for a claim for damages as well. Under the IPC, exceptions to the crime of defamation as follows:

1. truth in public interest for public good;
2. public conduct of public servants;
3. conduct of persons discharging public functions;
4. reports of proceedings of a court of law;
5. comments on cases;
6. literary criticism;

7. censure by person having lawful authority;
8. complaint to person having lawful authority;
9. imputation made in good faith to protect their or another's interests; and
10. caution made in good faith. In cases for civil defamation in India, while the amount of damages depends on the individual facts of each case, we have noted defamation cases being filed for up to 10 billion rupees. In some cases, the Supreme Court has also directed an entity alleged of defamation to deposit as much as 20 million rupees in a 1 billion rupees defamation case before admitting the case on appeal. [ 34 ] Further, recently, the Delhi High Court awarded a sum of 20 million rupees as damages in a defamation case. [ 35 ] The right to privacy has been read as a fundamental right under Article 21 of the Constitution of India in KS Puttaswamy v. Union of India. Further, the IT Act criminalises the violation of privacy by way of non-consensual publishing or transmission of the image of a private area of a person and lays down a punishment of three years, fine up to 300, rupees, or both. As stated above, under the IT Rules 2021, intermediaries are under an obligation to take-down and prohibit the access to content which is invasive of a person's privacy within 72 hours of reporting thereof to the intermediary. Similarly, private action may also comprise a suit for disparagement under common law or under the Trade Marks Act 1999 (TMA). Entities often engage in comparative advertising that involves comparison among two or more competitor products or services. However, Indian courts have held that entities cannot state that a competitor's products or services are bad while saying that their own products or services are better, [ 36 ] undervalue the products or services of a competitor, [ 37 ] or disparage a competitor's products or services as unsafe. [ 38 ] The CPA 2019 and the Misleading Advertisement Guidelines, the ASCI Code and the TMA provide for guidance on how such comparative claims can be made.

vii Government action against publication

Under the Blocking Rules, the GOI may, through a designated officer, direct the take down of information which is in contravention of law under the grounds outlined under Article 19(2) of the Constitution of India. Such orders are also made for the protection of children; for example, where child sexual abuse material is shared on the internet. The GOI has directed blocking of accounts on platforms such as YouTube and Twitter which were accused of sharing fake news and misinformation. [ 39 ] In the case where Twitter challenged such orders, the matter was decided by the Karnataka High Court in favour of the GOI.- [ 40 ] Further, the GOI has directed blocking of applications having off-shore links which were operating in sectors requiring approvals from regulators or which were engaged in unauthorised cross-border sharing of personal data of Indians. [ 41 ] Intellectual property

i Copyright and related rights

iii Unfair business practices

Courts in India have held that the 'hot news' doctrine is not applicable in India given that there can be no monopoly afforded to 'time-sensitive information' or facts. The only circumstance in which the doctrine would find application in India would be to injunct time-sensitive news where both parties are 'direct competitors'. A controversy in this regard arose when exclusive broadcasting rights of all cricket matches were granted to Star TV and other platforms such as 'cricbuzz' started sharing ball-by-ball coverage of live cricket matches. It was held that Star TV could not claim exclusive property over the information itself, even for a short duration and it did not have a right to injunct third parties from publishing information in relation to the match, whether or not such information was disseminated for commercial reasons. False attribution means a person falsely representing themselves as the owner or author of the work. False attribution is recognised under common law and is also recognised as a violation of moral right under the Copyright Act. Courts generally recognise: (1) a person's right to receive credit; and (2) right to prevent any distortion of the work that would be potentially harmful to the reputation and honour of the right holder. Under Section 57 of the Copyright Act, the author has the right to restrain by way of an injunction or claim damages in respect of any distortion, mutilation, modification or other acts that would be prejudicial to the honour or reputation of author. Competition and consumer rights The CCPA enforces the CPA 2019 in India to provide relief to consumers from unfair trade practices and false advertisements. The Competition Commission of India (CCI) is the regulator set up under the Competition Act 2002 (Competition Act) to prevent anticompetitive activities, and promote price-competition, information symmetry and innovation. Under the Competition Act, agreements that may have an appreciable adverse effect on competition are considered anticompetitive. The Competition Act restricts the abuse of dominant position by an enterprise or a group, which includes imposing unfair or discriminatory conditions or pricing in purchase or sale of goods or services. Recently, the Competition (Amendment) Act 2023 introduced the following key changes: (1) requirement of CCI approval where the value of any transaction, or acquisition of control, shares, voting rights or assets of an enterprise, merger or amalgamation exceeds 20 billion rupees; and (2) expanded definition of 'control' to include material influence of the activities of an enterprise. In terms of recent enforcement activity, the CCI approved the proposed amalgamation of two leading Indian broadcasters, Zee Entertainment Enterprises Limited and Culver Max Entertainment Limited (previously known as Sony Pictures Networks India Private Limited), which would create the largest broadcaster in India. [ 44 ] The combination was accepted with certain modifications directed by the CCI. Furthermore, the CCI is undertaking a review of a probe report on Apple's App Store commission and billing policies. [ 45 ] The outcome of this probe is expected to affect the revenue models of many entities in the media and entertainment sector which make their services available through the Apple App Store. As regards enforcement of the CPA 2019, The framework of the CPA 2019 and the powers of the CCPA have been set out in Section II.

An advisory issued by the MIB completely prohibited advertising of online betting platforms in India and to Indian consumers on print media, electronic media and online and social media, including intermediaries as well as publishers, on the grounds that betting and gambling are illegal in most parts of the country and because betting and gambling pose significant financial and socio-economic risks for consumers. As regards 'net neutrality', the TRAI had categorically stated that there cannot be any discrimination by internet service providers on the grounds of content being accessed, protocols being used, or the user equipment deployed. However, in response to a recent consultation paper published by the TRAI on the regulation of OTT service providers, [ 46 ] certain telecoms entities have recommended the imposition of carriage service fees on such OTT service providers. [ 47 ] Digital content As noted above in Section II.iii, Section 79 of the IT Act and the IT Rules 2023 provide safe harbour to intermediaries against liability for content stored, published, hosted and transmitted on such intermediaries upon compliance with certain due diligence requirements. In the case of X Corp (formerly Twitter) v. Union of India , the Karnataka High Court dismissed a petition filed by X Corp against orders made by the GOI under the Blocking Rules wherein certain accounts on X were ordered to be blocked. X Corp contended that: (1) the users operating the accounts were not provided with reasons and an opportunity to be heard; and (2) the directions to suspend the entire account were disproportionate as the Blocking Rules provide for blocking of public access to 'information' and not accounts generally. However, the Karnataka High Court ruled against X Corp as (1) identification of the users was not possible before the account-blocking orders were made and the blocking orders were compliant with the Blocking Rules; and (2) the Blocking Rules allow for blocking of entire accounts. The court also took note of X Corp's earlier non-compliance with earlier orders and imposed costs of 5 million rupees. However, the imposition of costs has been stayed by a larger bench on appeal by X Corp. Contractual disputes

i Royalties for authors of underlying works

As per Sections 19(10) of the Copyright Act, all authors of musical works and literary works such as lyrics (collectively underlying works) are entitled to claim the right to receive royalties and consideration for utilisation of the work in any form where such works are assigned to make a sound recording not a part of a cinematograph film. The owner of the sound recording has the right to sell or commercially rent any copy of the sound recordings and to communicate the sound recording to the public. However, whether a licence granted for the exploitation of a sound recording would obviate licences for the composition and lyrics has been the subject of contradictory decisions. The Intellectual Property Appellate Board (IPAB) had held that licences are required to be