Cinefil vs Hari Om Retail — Delhi HC Restrains Electronics Store From Showing Films Without Licence

Case Background

A seemingly routine business practice — playing popular films on television sets in an electronics showroom to demonstrate product quality — landed an electronics retail chain in court in May 2026. The Delhi High Court's ruling in Cinefil Producers Performance Limited v. Hari Om Retail Private Limited is a sharp reminder that commercial establishments cannot play films or music in their premises without obtaining a proper copyright licence.

Cinefil Producers Performance Limited is a copyright society registered under Section 33(3) of the Copyright Act 1957. It administers the public performance and communication rights for a repertoire of over 8,000 films on behalf of more than 750 film producer member-companies, and issues Cinematograph Performance Licences (CPLs) under a statutory tariff scheme.

What is the Public Performance Right?

Copyright in a cinematograph film under Section 14(d) of the Copyright Act 1957 includes the exclusive right to:

• Make copies of the filmReproduce the film in any form including digital files, DVDs and streaming copies
• Sell or hire copiesDistribute the film commercially through any medium
• Communicate to the publicSection 14(d)(iii) — broadcast, transmit or communicate the film to the public by any means — including playing it on screens in commercial premises

Playing a film on television sets or digital display screens in a commercial establishment — a hotel lobby, a restaurant, a hospital waiting room, an electronics showroom — constitutes "communication to the public" under Section 14(d)(iii). This requires the explicit authorisation of the copyright owner or a licence from an authorised copyright society.

Why OTT Subscriptions Don't Solve the Problem

Hari Om Retail's electronics stores were allegedly using digital platforms such as Amazon, Netflix or YouTube to stream the films on display televisions and screens. Cinefil argued — and the court accepted — that OTT platform subscriptions do not authorise commercial public performance of the content.

Amazon's terms of service, cited by Cinefil before the court, explicitly restrict the use of content to "personal, non-commercial, private use." Streaming a film from Amazon Prime on a television in a commercial showroom to attract and entertain customers is not personal, non-commercial or private — it is a public performance that requires a separate licence.

Delhi High Court's Order

Justice Tushar Rao Gedela granted the interim injunction on 7 May 2026, finding that Cinefil had made out a prima facie strong case. The injunction restrained Hari Om Retail from:

• Communicating films publiclyProhibited from screening, broadcasting or making available any film from Cinefil's repertoire within its Delhi store premises
• Using transmission systemsDirected to suspend satellite, cable, IPTV, smart display interfaces, AI-augmented audio-visual systems and other network-integrated transmission infrastructure used for such screenings
• Until CPL is obtainedRestraint continues until Hari Om Retail obtains a valid Cinematograph Performance Licence from Cinefil

The court found that Cinefil had first written to the defendant on 28 February 2026, informing it of the licensing requirement — to no response. A cease and desist notice on 6 March 2026 also went unanswered. Cinefil's representatives then visited the Ashok Vihar store, photographed and recorded films from the repertoire being played on display televisions — placing this evidence before the court.

Who Needs a Cinematograph Performance Licence?

Any commercial establishment that plays films — whether on a single television or across multiple screens — in an area accessible to customers, clients, guests or members of the public requires a CPL from the relevant copyright society. This includes:

• Electronics stores and showroomsPlaying films on display TVs to demonstrate product quality — exactly the scenario in this case
• Hotels and restaurantsFilms or music videos played in lobbies, restaurants, bars, banquet halls or guest rooms
• Hospitals and clinicsFilms played in patient waiting areas or reception areas
• Shopping mallsDigital screens in common areas or individual stores playing film content
• Gyms and fitness centresFilms or music videos played during workout sessions
• Airlines and transportFilms screened during flights, trains or bus journeys

Key Lessons for Business Owners

• Obtain a CPL before playing films commerciallyContact the relevant copyright society before installing any screen-based entertainment system in your commercial premises — failure to do so exposes you to an injunction and damages
• OTT subscriptions are for private use onlyNever use a personal Amazon, Netflix or YouTube subscription to stream content in your business premises — this violates both the platform's terms and copyright law
• Cease and desist notices must be responded toCinefil first wrote to Hari Om Retail and then sent a cease and desist notice — both were ignored. Ignoring such notices leads to court proceedings
• The licence fee is far less than litigation costsA CPL from a copyright society is a routine business expense — far cheaper than facing an injunction application and potential damages award in the Delhi High Court
• The injunction applies to all transmission systemsThe court's order covers satellite, cable, IPTV, smart displays and AI-augmented systems — confirming that the mode of delivery does not change the licensing requirement

Why Choose Adv. Nikhil Soni & Co.?

• Personal handling by senior advocateAdv. Nikhil Soni personally handles every copyright matter — clients deal directly with the advocate, not junior staff
• 23+ years, 5000+ trademarksExclusive IP practice since 2001 — trademark, patent, copyright, design and trade secret
• All India coverageAuthorised to handle IP matters before courts and tribunals across India
• End-to-end serviceRegistration, enforcement, litigation and licensing — complete IP lifecycle management

Frequently Asked Questions