Delhi High Court Restrains Hyatt India From Unauthorized Use Of Copyrighted Music

Delhi High Court Restrains Hyatt India From Unauthorized Use Of Copyrighted Music

The Delhi High Court has granted an ex-parte ad interim injunction in favor of Novex Communications Private Limited (plaintiff), a prominent broadcasting and media solutions company, in its case against Hyatt India Consultancy Pvt. Ltd. (defendants), which operates several hotels under the “Hyatt” and “Andaz” brands. The plaintiff sought to restrain the defendants from using its copyrighted sound recordings without obtaining the necessary licenses.

Justice Saurabh Banerjee issued the injunction, restraining the defendants, including their partners, directors, employees, agents, and other associates, from using, playing, exploiting, or publicly performing any sound recordings owned or authorized by the plaintiff without proper licensing. The restriction also extended to the use of the recordings at the defendants' hotels, including for events, parties, and functions, as well as in-house uses in venues under their control. The court’s order covers all of the defendants' properties across India.

Novex Communications, established in 2002, is a key player in the broadcasting and media sector, particularly known for its satellite channel distribution and music licensing services. Over time, it expanded its repertoire to include a wide range of sound recordings, and it now manages licenses for ground performances at venues such as hotels, malls, and stadiums. The plaintiff holds rights over sound recordings from major music labels, including Zee Entertainment Enterprises, Tips Industries, Think Music, and Red Ribbon Entertainment. These rights, assigned via formal agreements, grant the plaintiff exclusive control over public performances of these recordings.

The plaintiff alleged that the defendants were infringing on its copyrights by using the sound recordings at their hotels without obtaining the required licenses. The plaintiff discovered that, on December 31, 2023, the defendants played copyrighted music at a New Year’s event at Andaz Delhi without authorization. Further infringements were noted at other Hyatt properties, including Grand Hyatt Mumbai and Hyatt Regency Ahmedabad. Despite several cease-and-desist notices from the plaintiff’s advocates, the defendants denied any wrongdoing and did not regularize their use of the recordings.

The plaintiff subsequently filed a suit, citing that several court orders in the past had restrained other entities from using its sound recordings without proper licenses. In this case, the defendants, who were fully aware of the plaintiff's ownership rights, had previously obtained licenses from the plaintiff but failed to do so on this occasion. The plaintiff argued that this unauthorized use of its sound recordings not only resulted in commercial gain for the defendants but also harmed the sound recording industry, already suffering from piracy and widespread infringement.

In response, counsel for the defendants denied the allegations, claiming they had not infringed on any copyrights. However, the Court observed that the defendants were well-versed in the industry and had obtained licenses from the plaintiff in the past but had failed to do so in this instance, thereby violating the plaintiff’s copyright. The Court emphasized that continuing this unauthorized use would constitute a clear infringement of the plaintiff's rights.

The Court found that the plaintiff had successfully established a prima facie case, with the balance of convenience favoring the injunction. It was also convinced that the plaintiff would suffer irreparable harm if the defendants were allowed to continue their infringement. As a result, the Court granted the ex parte ad interim injunction, restraining the defendants and their associates from using or publicly performing the plaintiff’s sound recordings without valid licenses. The defendants were further directed to ensure compliance across all Hyatt and Andaz properties nationwide.