a case on copy right and the verdict given by the court

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Business Law Case Presentation

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Page 1: A case on Copy right and the verdict given by the court

Business Law Case Presentation

Page 2: A case on Copy right and the verdict given by the court

Introduction to Gemalto Terminals Pvt Ltd.

• Gemalto is the world leader in protecting, verifying and managing digital identities and interactions. This enables clients to offer personal mobile services, payment security, authenticated cloud access, software monetization, data encryption, machine-to-machine applications and many other services.

• Gemalto develops and install secure software in diverse products (SIMs, payment cards, eID documents etc.) used to access digital services. Our platforms and services continuously monitor and manage these devices, checking identities, managing transactions and protecting the data they transmit and store.

Page 3: A case on Copy right and the verdict given by the court

• Pine labs is a leading provider of retail POS solutions that simplify payment acceptance, while creating business opportunities for Issuers, merchants and brands to connect with consumers.

• Today it has evolved into a payment acceptance partner choice for

more than 30,000 retailers, ranging from large worldwide enterprises with wide network across India to locally-owned small businesses.

• Pine Labs provide value added solutions like Instant EMI, Instant

Discounts, Cash Back Programs, Pay by Points, Loyalty Solution, Gift Solution, Targeted Promotions, Dynamic Currency Conversion etc.

Introduction to Pine Labs Pvt Ltd.

Page 4: A case on Copy right and the verdict given by the court

Introduction to Case

• Gemalto engaged Pine Labs for the development of software for various programs including the one for the IOCL Fleet Card Program.

• A Master Service Agreement (MSA) was signed in June 2004. Clause 7 of the MSA provided that Pine Labs "assigns" all copyright to Gemalto.

• Pursuant to the MSA, Pine Labs authored a software program known as the Version 1.03 for the IOCL Fleet Card Program and a complete version of the same was provided to Gemalto in August 2004. Thereafter, certain other functionalities were added to the program and subsequent versions were also provided from time to time.

Page 5: A case on Copy right and the verdict given by the court

• In 2009, Pine Labs filed a suit in the Delhi high Court claiming that copyright had reverted to it as the assignment had expired by virtue of section 19(5) and 19(6) of the Indian Copyright Act Section 19(5) and 19(6) provide that: – 19(5) If the period of assignment is not stated, it shall be

deemed to be five years from the date of assignment.

– 19 (6) If the territorial extent of assignment of the rights is not specified, it shall be presumed to extend within India

Cause of Case

Page 6: A case on Copy right and the verdict given by the court

Contention of Parties

_____________________

Wanted the rights of IOCL fleet card program on their name, as it was their project, which was developed by Pine labs under MSA.

______________________

As duration of MSA was not mentioned and by law it expired in 5 years from date of creation, so Pine Labs wanted rights of IOCL fleet card program to be transferred on their name as they are the creators of the program.

Page 7: A case on Copy right and the verdict given by the court

Hearings

• In 2009, Delhi High Court, the bench observed that: “Since IOCL Fleet Program is developed by Pine Labs, which is the creator of the said Program as per Section 17 of the Copyright Act, Pine Labs would be the first owner of the copyright in this work. Section 18 of the Act, however, permits the copyright owner to assign the copyright either wholly or partially and either generally or subject to limitation and either for the whole term of the copyright or any part thereof. Section 19 of the Act stipulates the mode of assignment. Sub Section (1) thereof provides that in no uncertain term that assignment has to be in writing signed by the assignor or by his authorized agent. As per sub Section (2) of Section 19 of the Act, the assignment of the copyright, any such work is to identify such work and also specify the rights assigned and the “duration and territorial extent of such assignment”. Thus by agreement the assignment can be for a limited duration and limited territory.”

Page 8: A case on Copy right and the verdict given by the court

Importance of Case

• This judgment is of significant importance in outsourcing contract/ commissioning works, not only for computer software but for all aspects where an author is contracted to write any literary work. Provisions of section 19(5) and 19(6) of the Copyright Act, which were inserted only in 1995 through an amendment, are unique to India and are often overlooked at the stage of drafting of contracts for assignment of copyright. This judgment clearly lays down that if the parties fail to provide for the period in the document by which assignment of copyright is made, then regardless of intention of the parties, the period of assignment would only be 5 years and the territory would only be the territory of India. Care should therefore be taken that if perpetual and worldwide assignment (or an assignment beyond 5 years) of copyright is envisaged by the parties, this should be specifically mentioned in the document through which assignment of copyright is made. Authors should note that in case of past assignments made by them, if more than 5 years have expired and the document of assignment did not specifically mention a term, the copyright may have reverted to them.

Page 9: A case on Copy right and the verdict given by the court

Final Decision

• The Bench relied upon section 19(5) and 19(6) of the Copyright Act and came to the conclusion that:

as no duration or territorial extent is provided in agreement or any assignment deed, provisions of Section 19 (5) (6) of Copyright would be attracted. • Gemalto contended that the MSA was only an agreement to assign

and not an assignment and it was the equitable owner of the copyright. As such, section 19(5) and 19(6) of the Copyright Act had no application and Pine Labs was liable to execute documents assigning the copyright to Gemalto. This contention was overruled by the Bench which concluded that section 19(5) and 19(6) of the Copyright Act applied whether the MSA was an agreement to assign or an assignment

Page 10: A case on Copy right and the verdict given by the court

A Presentation By:

Jasleen Kaur Abhitanjay Chaudhary

Owais Ashraf Aastha Prasad Surbhi Kapoor

Rakesh Agarwal

Thank You !!