INTRODUCTION
Over the last two decades, India’s media and entertainment industry has expanded at an exponential rate, transforming into a thriving sector that includes film, television, music, digital content, and more. This expansion has been accompanied by an increasingly complex legal system that governs contracts and licenses in the firm. The Indian entertainment business, valued at about USD 28 billion by 2024, functions under a unique convergence of statutory rules, legal precedents, and customary norms. [1]
Contracts and licenses provide the groundwork of all economic activity in this business, outlining rights, duties, and revenue-sharing mechanisms among numerous partners. The contractual environment of Indian media and entertainment is vast and complex, involving everything from star contracts to distribution partnerships, copyright licenses, and franchise agreements. The legal structure that regulates these contracts is based on many pieces of legislation, including the Indian Contract Act of 1872, the Copyright Act of 1957 (as updated in 2012), the Trademarks Act of 1999, and several entertainment-specific restrictions.[2]
TYPES OF CONTRACTS IN THE MEDIA AND ENTERTAINMENT INDUSTRY
The Indian media and entertainment industry relies on a diverse set of contracts adapted to its unique requirements and economic models. Talent agreements are an important category that controls the relationships between production firms and artists, directors, authors, and other creatives. These contracts often include salary plans, performance objectives, exclusivity agreements, and credit provisions.[3] The 2012 revisions to the Copyright Act established the notion of statutory compensation for writers and composers, stating that some rights cannot be legally relinquished—a policy that has fundamentally impacted music licensing deals. [4]
Along with this exclusivity and non-compete agreements must be carefully drafted to combine legitimate company goals with potential trade limitations under Section 27 of the Contract Act. The application of morality standards, which have gained popularity in talent agreements as a result of high-profile incidents, is nevertheless controlled by new public policy and basic rights legislation. Payment arrangements in entertainment contracts can be complicated, consisting of minimum guarantees, royalty escalations, and backend profit participation, necessitating specific accounting term definitions and audit rights. Following the disruption of production schedules and release plans caused by the COVID-19 pandemic, risk allocation solutions that handle force majeure, indemnity, and insurance needs have become increasingly important. Because the industry prioritises secrecy, punctuality, and specialist expertise, arbitration is typically the preferred dispute resolution method for these contracts. The Bombay High Court’s approach in Malika Hegde v. IDBI Trusteeship Ltd. [5] underlines the importance of unambiguous termination clauses in entertainment licenses.
LICENSING FRAMEWORKS IN ENTERTAINMENT LAW.
Licensing is the cornerstone of monetisation in India’s media content economy, allowing owners to profit from their intellectual property while maintaining ownership. Music licensing is likely the most formal licensing system in India, with the Indian Performing Right Society (IPRS) and Phonographic Performance Limited (PPL) serving as collective management organisations to help with the licensing of performance and sound recording rights, respectively. A key Supreme Court decision, International Confederation of Societies of Authors and Composers (CISAC) v. Aditya Pandey[6], clarified the scope of these collective licensing agreements.
Film licensing includes a wide range of rights, including theatrical exhibition, satellite transmission, internet streaming, and merchandising, which may include territory-specific sub-licensing agreements. Television content licensing has evolved beyond traditional broadcasting to include format licensing, which requires adapting popular show concepts into new languages and regions while adhering to exact format bibles and production protocols. The flourishing OTT (Over-The-Top) market is built on subscription and transactional licensing models; nonetheless, stability in this sector remains elusive due to continuous evolution in business practices. Character goods licenses have risen in importance as animation assets and superhero characters have gained popularity, needing careful consideration of quality control standards and royalty arrangements. In Tips Industries Ltd v. Wynk Music Ltd.[7], the Bombay High Court recognised various digital music exploitation.
EVOLUTION AND STATUS OF CONTRACTUAL CHALLENGES.
The digital revolution in India’s media business has created new contractual challenges that traditional frameworks have failed to appropriately address. Rights fragmentation across platforms and territories has rendered conventional licensing ineffective, necessitating more complicated techniques for rights segmentation and exploitation windows. The rise of user-generated content platforms has eroded the boundaries between producers and consumers, resulting in complex issues with derivative works and implied licenses that courts are just now beginning to address.[8]
Streaming services’ use of algorithmic content recommendation has raised fresh concerns about the prominence and discoverability commitments included in content licensing agreements. The emergence of influencer marketing has resulted in a new type of endorsement agreement that incorporates authenticity disclosures, engagement data, and regulatory compliance. Web3 technologies, such as non-fungible tokens (NFTs) and metaverse apps, make contractual rights and ownership in virtual settings more difficult to define. The enforceability of click-wrap and browse-wrap agreements that restrict consumer access to digital entertainment services is still being debated, notably regarding arbitration mandates and liability limitations. Data rights have become an important contractual component, with agreements establishing ownership and usage rights for user data, watching patterns, and engagement metrics across entertainment platforms. In Lahari Recording Company v. Muthoot Finance Ltd.[9], the Madras High Court highlighted the need for contractual arrangements to adapt to technological advancements.
Moving forward, legislative measures addressing digital rights management, artist protections, and platform responsibilities would provide clarity to contractual agreements. While the fundamental concepts of contract law and intellectual property rights are unaltered, their application demands greater complexity and experience. Industry stakeholders would benefit from increased uniformity in contractual templates while keeping freedom for innovation. The judiciary has played an essential role in interpreting entertainment contracts, typically balancing commercial certainty with creative freedom and consumer interests. Hence, legislative measures addressing digital rights management, artist protections, and platform responsibilities would provide clarity to contractual agreements.[10]
CONCLUSION
The contractual and licensing environment for India’s media and entertainment industries is changing in response to technological breakthroughs, commercial realities, and regulatory developments. As the industry expands beyond traditional borders to include immersive experiences, interactive content, and transnational digital distribution, the legal frameworks that govern these activities must develop. While the fundamental concepts of contract law and intellectual property rights are unaltered, their application requires greater complexity and experience. Industry stakeholders would benefit from increased uniformity in contractual templates while keeping freedom for innovation.
Author(s) Name: Kavya Assari
References:
[1] Federation of Indian Chambers of Commerce and Industry (FICCI), “Indian Media and Entertainment Industry Report,” 2024.
[2] Tanu Banerjee, vaibhav laddha, sankalp jain & Ishan lohri, Media and Entertainment Law edition 6, Lexology, October 2024.
[3] Sharma, P., “Entertainment Law in India: Contemporary Issues and Challenges,” Eastern Law House, 2023, p. 142.
[4] Section 19(10) of the Copyright Act, 1957 (as amended in 2012).
[5] Malavika Hegde v IDBI Trusteeship Services Ltd and Anr, Company Appeal (AT) (CH) (Ins) No 29, 2024.
[6] International Confederation of Societies of Authors and Composers (CISAC) v. Aditya Pandey, 11 SCC 437; 2016 SCC Online SC 967, 2017.
[7] Tips Industries Ltd v Wynk Music Ltd, Comm IP Suit (L) No 197, 2018
[8] Mehta, R., “User-Generated Content and Copyright Law in Digital India,” National Law School of India Review, Vol. 33, 2022, p. 87
[9] Lahari Recording Company v M/s Global Music Junction Pvt Ltd, 39 PTC 597 Del, 2009.
[10] Ministry of Information and Broadcasting, “Draft Broadcasting Services Regulation Bill,” 2023.
