Delhi High Court Settles Film Rights Dispute Between People Media Factory and IVY Entertainment
Court Refers Copyright and Intellectual Property Dispute to Arbitration Following Mutual Agreement
In a significant development, the Delhi High Court has effectively resolved the ongoing legal battle between People Media Factory Private Limited (PMF) and IVY Entertainment Private Limited concerning the intellectual property rights of the Telugu film 'The Raja Saab'. The court, presided over by Justice Tejas Karia, facilitated a settlement between the parties, directing them to adhere to mutually agreed terms and refer their disputes to arbitration under the Arbitration and Conciliation Act, 1996.
The case, encompassing CS(COMM) 746/2025 and CS(COMM) 782/2025, revolved around the contested rights and obligations under various agreements, including the Film Rights Assignment Agreement (FRAA) and the Theatrical Rights Acquisition Agreement (TRAA). The dispute arose when IVY, which had acquired certain rights to the film, issued a termination notice to PMF, alleging failure to exploit non-theatrical rights and demanding the reversion of all rights.
Following extensive negotiations, the parties reached a comprehensive settlement outlined in the Consent Minutes. Key points of the settlement include PMF's commitment to release 'The Raja Saab' by January 2026 and a structured payment plan to IVY totaling INR 218 crore. The payments are to be completed by November 2025, with provisions for interest and adjustments based on prior receipts.
Importantly, both parties agreed to refer their disputes, including any arising from the settlement, to arbitration. The Arbitration Agreement, dated September 26, 2025, was annexed to the court order, ensuring that all matters would be adjudicated by a sole arbitrator as per the statutory requirements.
The court also addressed the issue of court fees, directing a 100% refund to the plaintiffs, acknowledging the early stage at which the settlement was reached. This decision emphasizes the court's encouragement of dispute resolution outside of prolonged litigation, particularly in complex intellectual property matters.
Justice Karia commended the legal representatives of both companies for their efforts in reaching a constructive resolution, highlighting the efficiency of arbitration in resolving such disputes. The court's directive to follow the terms of the Consent Minutes and proceed with arbitration promises a swift and fair resolution to the intricate issues involved.
Bottom Line:
Intellectual Property Rights - Dispute involving copyright and allied rights in a cinematograph film settled through mutual consent and referred to arbitration under the Arbitration and Conciliation Act, 1996.
Statutory provision(s): Arbitration and Conciliation Act, 1996 Section 8, Arbitration and Conciliation Act, 1996 Section 7, Court Fees Act, 1870 Section 16
