2013 (2) TMI 197 - HC - Companies Law

Permanent injunction restraining infringement of copyrights, delivery of profits, rendition of accounts, damages and delivery of all plaintiffs unlicenced pirated software - all the impugned products being unlicensed/pirated software contained in hard disks, compact disks, floppy disks including any CD Writers/Burners, or any other material infringing or aiding in the infringement of the Copyright of the Plaintiffs, such as infringing copies of user Instruction Manuals of software titles, lying in the possession of the Defendants and their principal officers, directors, agents, franchisees, servants - Held that - Software programmes as developed and marketed by the plaintiffs are a computer programme within the meaning of Section 2 (ffc) of the Copyright Act, 1957 and also included in the definition of a literary work as per Section 2(o) of the Copyright Act, 1957. The plaintiffs work are also protected in India under Section 40 of the Copyright Act, 1957 read with the International Copyright Order, 1999 as the rights of authors of member countries of the Berne and Universal Copyright Conventions are protected under Indian copyright law. India and the USA are signatories to both the Universal Copyright Convention as well as the Berne Convention. Consequently, this Court is of the view that plaintiffs are entitled to a decree of permanent injunction. Plaintiffs are entitled to relief of damages and rendition of accounts to the tune of Rs. 5,00,000/-

Summary

Issues:
- Copyright infringement of software
- Permanent injunction
- Delivery of profits
- Rendition of accounts
- Damages for infringement
- Unlicensed pirated software

Copyright Infringement of Software:
The plaintiffs, including Microsoft Corporation, filed a suit seeking a permanent injunction to restrain infringement of copyrights, delivery of profits, rendition of accounts, and damages related to unlicensed pirated software. The plaintiffs' software programs, such as Microsoft Windows and Office, were found to be installed on the defendants' computer systems without proper licenses, leading to copyright infringement. Despite repeated requests for a Software Asset Management (SAM) Review, the defendants failed to comply, prompting legal action.

Permanent Injunction:
The Court granted a decree of permanent injunction, restraining the defendants from reproducing, storing, installing, or using unlicensed software belonging to the plaintiffs. The defendants were prohibited from infringing the copyright in the plaintiffs' computer programs and software titles. This injunction aimed to prevent further unauthorized use of the copyrighted software by the defendants.

Delivery of Profits and Rendition of Accounts:
The plaintiffs sought delivery of profits earned by the defendants through the infringement of their copyrights. However, due to the lack of evidence on the turnover of the defendants, a precise figure for damages could not be determined. In a previous case, the Court had awarded compensatory damages in a similar copyright infringement matter. The Court emphasized the importance of combating software piracy and awarded damages of Rs. 5,00,000 in favor of the plaintiffs.

Damages for Infringement:
Based on the evidence presented by the plaintiffs, which remained unrebutted, the Court accepted the facts stated in the plaint as true and correct. The software programs developed and marketed by the plaintiffs were considered literary works protected under the Copyright Act. As a result, the Court decreed in favor of the plaintiffs, granting damages of Rs. 5,00,000 along with the costs of the suit.

Unlicensed Pirated Software:
During the investigation and subsequent legal proceedings, it was revealed that the defendants had numerous unlicensed/pirated software titles installed on their computer systems, including Microsoft Windows, Office, and other related programs. The Court found the defendants liable for copyright infringement and unauthorized use of the plaintiffs' software, leading to the decree of permanent injunction and damages awarded to the plaintiffs.

This detailed analysis of the judgment highlights the key issues addressed by the Court in the copyright infringement case involving unlicensed pirated software and the legal remedies sought and granted to the plaintiffs.