2013 (2) TMI 87 - HC - Companies Law

Injunction restraining infringement of copyright, delivery of profits, rendition of accounts, damages etc. - infringing activities regarding intellectual property rights by carrying on the business of unauthorized Hard Disk Loading of the plaintiffs software on to the branded computers sold by them to the customers, immediately initiated an investigation - 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. 2,00,000/-

Summary

Issues involved: Copyright infringement, permanent injunction, damages, rendition of accounts.

Copyright Infringement:
The plaintiffs, a software company, filed a suit for permanent injunction against the defendants for infringing their copyright by loading unauthorized software onto computers. An independent investigator confirmed the infringement by purchasing a computer from the defendant, which was preloaded with pirated software. The technical expert of the plaintiffs verified the infringement by examining the computer's hard disk, revealing pirated versions of the plaintiffs' software. The court restrained the defendants from engaging in any activities constituting copyright infringement.

Proof of Copyright Infringement:
The plaintiffs presented evidence through an affidavit of their constituted attorney, proving the authenticity of their software and copyright certificates. The court accepted the plaintiffs' evidence as true and correct since the defendants did not appear to rebut it. The court recognized the software programs developed by the plaintiffs as 'computer programs' and 'literary works' under the Copyright Act, protected in India under international copyright conventions.

Permanent Injunction:
The court concluded that the plaintiffs were entitled to a decree of permanent injunction due to the proven copyright infringement. The defendants were restrained from copying, producing, selling, or distributing pirated versions of the plaintiffs' software. The court emphasized the importance of protecting the rights of authors under copyright law.

Damages and Rendition of Accounts:
In line with previous judgments, the court awarded damages of Rs. 2,00,000 to the plaintiffs for the copyright infringement. The court decreed the suit in favor of the plaintiffs, granting them permanent injunction, damages, and costs of the suit. The court directed the registry to prepare a decree sheet accordingly, ensuring the enforcement of the judgment.