SC finds merit in Star India's case on mobile and digital rights

Star India argues that it has paid for exclusive media rights of BCCI matches

The Supreme Court has passed an interim order in the mobile and digital rights case the broadcaster had filed in January this year. The broadcaster had moved the Delhi High Court earlier this year against telecom and digital players (Idea Cellular, Akuate Internet and OnMobile Global) who gave out contemporaneous information (ball-by-ball updates) of international matches (organised by the Board of Control for Cricket in India) played in India.

Star India argued that since it has paid for the exclusive media rights of BCCI matches, others should not be allowed to disseminate contemporaneous information since it interferes with Star's prospects of monetising it.

The apex court has overturned the order issued by the Delhi High Court (issued in September) and has asked the parties to maintain status quo as of 13 March 2013 order passed by the Single Judge of the High Court.

Additionally, the court has said that each defendant has to deposit Rs 10 lakh with the High Court for every test match, one day international and T-20 match that India plays from the date of the order till the time the case is pending in the court.

His implies that the three defendants – Idea Cellular, Akuate Digital and OnMobile Internet will have to cough up Rs 130 lakh each since India will be playing 13 international matches in the time (8 with Australia and 5 with West Indies).

The interim order also states, “We make it clear that if the plaintiffs eventually fails in the suit, the trial court shall be free to determine  such  amount of compensation to be awarded to the defendants or any one of them as  may  be  considered  just  and  proper  in   the   facts   and circumstances of the case.”

Further, the Supreme Court has informed the mobile and digital service providers to maintain accurate accounts of receipts from the S.M.S. alerts sent only by them to their customers.  The account shall  be  filed  on monthly basis in this court.

Nitin Kukreja, President Sports at Star India said, "The interim order is a testament to the fact that the honourable Supreme Court sees merit in Star India’s argument on mobile and digital rights. We have always maintained that lack of clarity on digital rights has been severely compromising the ability of rights / event owners to invest in creating great experiences for sports fans. This clarity is essential for event owners who put in all the effort and investment in creating / setting up these exclusive properties to monetise untapped / new revenue streams which but for the lack of clarity / legislation, would have accrued to them in the natural course of matters.”

When contacted, spokespersons from Idea Cellular and OnMobile Global refused to comment, while those from Akaute Internet could not be reached.

In January this year, the broadcaster filed a petition in the Delhi High Court seeking protection of the digital rights for international cricket matches involving the Indian team. Star India has paid Rs 38.51 billion for exclusive media rights to cricket matches organised by the Board of Cricket Control in India (BCCI). This includes Rs 5 million per match for the digital media rights.

The Single Judge of High Court in March had found merit in Star India’s case and ordered the three mobile/digital companies to not give contemporaneous updates on the cricket match. It ordered that there should be at least a  fifteen minute lag between in giving out information and in case the sevice provider wants to give ball-by-ball updates, it needs to get a license  from Star India.

In September this year, the Divisional Bench of the High Court set aside the Single Judge's order pursuant to which, Star India filed a petition with the Supreme Court.