The Madras High Court recently dismissed two applications filed by Netflix India, represented by Los Gatos Production Services LLP, in a copyright dispute raised by Dhanush’s Wunderbar Films. The applications sought to reject the lawsuit filed by Wunderbar Films and to revoke the court's permission to sue Netflix India.
Key Allegations by Dhanush’s Wunderbar Films
Dhanush, through his production company, Wunderbar Films, alleged that unauthorized footage from his film Naanum Rowdy Dhaan was used in the Netflix documentary Nayanthara: Beyond the Fairytale. This footage, categorized as "behind-the-scenes" (BTS), was allegedly included in the documentary without permission. The plaintiff claimed this was a clear violation of copyright since the BTS footage is considered part of the film's intellectual property, owned by the producer.
The issue arose when the documentary's trailer was released on November 9, 2024. Following this, Dhanush’s legal team sent notices to Netflix and others involved, urging them to refrain from using the footage. Despite the warnings, the documentary was released on November 18, 2024, leading to the filing of the lawsuit on November 24, 2024.
Netflix India’s Argument
Netflix argued that the lawsuit should be dismissed due to jurisdictional issues. Since their office is located in Mumbai, outside the territorial jurisdiction of the Madras High Court, they claimed that the plaintiff's application to sue lacked merit. They further contended that the lawsuit did not comply with Section 12A of the Commercial Courts Act, which mandates pre-suit mediation.
Moreover, Netflix argued that a photo from the movie set had been publicly available since 2020, and the plaintiff had delayed legal action until after the documentary’s release, questioning the urgency of the matter.
Wunderbar Films’ Counterargument
Senior Advocate PS Raman, representing Wunderbar Films, emphasized that the producer owns all creative content from the movie set, including BTS footage. He argued that the cause of action arose only after the unauthorized use of the footage in the documentary, as revealed in its trailer. Furthermore, he highlighted that Nayanthara had signed an artist agreement that explicitly stated her costumes and appearance in the movie were under the producer's copyright.
Regarding the jurisdiction, Wunderbar Films argued that the majority of the cause of action arose in Chennai, where the movie was produced, agreements were signed, and initial release activities occurred. The Madras High Court had previously granted leave to sue Netflix India under Clause 12 of the Letters Patent, recognizing its jurisdiction in the case.
Justice Abdul Quddhose, presiding over the matter, dismissed Netflix’s applications. The court ruled that:
- The suit was filed both under Section 62 of the Copyright Act and Clause 12 of the Letters Patent, providing sufficient jurisdictional basis for the High Court to hear the case.
- The plaintiff’s claim of urgency and the need for interim relief justified bypassing pre-suit mediation under Section 12A of the Commercial Courts Act.
- The assertion that a part of the cause of action occurred in Chennai was valid, as agreements and substantial production activities had taken place within the court’s jurisdiction.
The court emphasized that the plaintiff was entitled to legal remedies for protecting their intellectual property rights. The judge clarified that these observations were preliminary and would not influence the final judgment on the main case.
"The assertion in the plaint must be presumed to be true for determining whether the leave is liable to be revoked... A major part of the cause of action arose within the jurisdiction of this court."
Case Title: Los Gatos Production Services India LLP v. Wunderbar Films Private Limited
Case No.: A. Nos. 6748 and 6750 of 2024
