Legal Showdown; Shark Tank India's Copyright Infringement Notices To Startups

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‘Shark Tank India' an Indian franchise of the American show ‘Shark Tank' that aims to promote small businesses, especially startups, by providing them with a platform...
India Intellectual Property
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‘Shark Tank India' an Indian franchise of the American show ‘Shark Tank' that aims to promote small businesses, especially startups, by providing them with a platform to secure funding and sponsorship. Entrepreneurs present their concepts, products, and services to a panel of investors known as “sharks,” hoping to transform their ideas into viable market products. The show's popularity has made it a significant stepping stone for many small businesses in India.

Shark Tank India is aired on Sony Entertainment TV and the OTT platform SonyLIV, and is owned and managed by Culver Max Entertainment, operating under Sony Pictures Networks India. Recently, a legal controversy has erupted around the use of video clips from the show by the startups, for which the producer has issued copyright infringement notices to startups featured on Shark Tank India. These notices were sent because startups were using clips of their presentations from the show on YouTube and Meta ads without permission from Sony. Numerous startups have also disclosed that Google and Meta have flagged their social media posts and website videos for copyright violations. Consequently, their content has been taken down from these platforms, or in more severe cases, their accounts have been suspended.

In response to the growing concern, Shark Tank India clarified that participating companies are permitted to share images and videos provided by the show's team on their respective social media platforms. The advisory urged participants to abstain from using the Shark Tank India, Sony LIV, and Sony Entertainment Television logos, images, fonts, and videos on their websites or social media, as it would constitute copyright infringement. It clarified that only the pictures and videos provided by the show's teams could be uploaded on their social media platforms. The advisory further stated that participants could only mention “As Seen on Shark Tank India” and not phrases like “Approved by Sharks” or “Approved on Shark Tank India”, etc. However, this clarification did little to quell the dissatisfaction among the affected startups.

Pathik Patel, founder of Fit & Flex, criticised Sony Entertainment Television, accusing the channel of unfairly targeting his company for trademark infringement and suspending its advertising account without any prior notification or warning. Patel's frustration highlights the broader sentiment among startups, asserting that they are unjustly penalized despite contributing to the show's success and visibility.

Sparsh Agarwal founder of Dorje Teas and a participant in the show voice his grievance on LinkedIn stating the confusion and dismay among startups: “While I understand the copyright laws supporting it, I don't understand why they would do this. After all, Dorje Teas and other companies are spending lacs every month to boost Shark Tank content, thereby giving free publicity and brand recall to the SHARK TANK INDIA brand! This seems like such a bad business decision made by some executive/legal person within Sony. It also goes against the entire ethos of promoting small startups.”

However, the truth remains that while the situation seems prejudicial, it is a legal right of Sony. Shark Tank India qualifies as a “Cinematograph Film” under the Copyright Act of 1957. Section 2(d)(v) of the act defines a producer as someone who is an author of a cinematograph film or sound recordings. Unless an agreement states otherwise, the producer holds exclusive rights over the TV series, including video clips and sound recordings in the show. Consequently, the use of video clips by startups and individuals who appeared on Shark Tank India without the copyright owner's permission constitutes copyright infringement, justifying the producer's issuance of the copyright violation notices.

However, startups served with these notices may invoke the de-minimis defense, arguing that the short video clips are of negligible duration and not intended to infringe upon the producer's copyright or its ancillary benefits.

Furthermore, startups may assert performance rights under Section 2(q) of the Copyright Act, which defines “any live visual or acoustic presentation by one or more performers.” If there was no prior agreement to include their performance in Shark Tank India, this defense could be valid. Participants showcasing their products and ideas in front of the panel could be deemed performers under the act's provisions, providing a potential legal shield against infringement notices.

The legal tussle raises important questions about the balance between protecting intellectual property rights and fostering a supportive environment for startups. While Sony's actions are well within their legal rights, they appear to contradict the show's core ethos of promoting and supporting small businesses.

Ultimately, this legal showdown may prompt changes in how reality TV shows like Shark Tank India handle intellectual property issues. It highlights the importance of transparent agreements and mutual understanding between producers and participants to avoid such conflicts in the future. As startups continue to navigate the complex landscape of intellectual property rights, this case serves as a reminder of the need for vigilance and proactive measures to protect their interests while complying with legal requirements.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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