Legal Compliance for OTT Platforms in India: Understanding the Regulatory Landscape

3rd April, 2024 - 6:37 am Categories: Media & Entertainment Law 0 Comments

INTRODUCTION

Over-the-top (OTT) services are digital content providers that stream media directly over the internet to viewers so they do not have to go through usual distribution channels like cable or satellite TV. These platforms contain content, such as movies, TV shows, web series, and documentaries, that can be watched on various devices, ranging from smartphones and tablets to smart TVs. Examples of OTT platforms are Netflix, Amazon Prime Video, Disney+, Hulu, Hotstar, etc. [1]

OTT service providers in India must comply with the Information Technology Act, 2000 (IT Act) which includes provisions related to content regulation, data protection, privacy, and other general compliances. Failure to comply can result in legal penalties such as fines, restrictions on content and services, and other consequences. Compliance ensures a safe, secure, and trustworthy environment for digital content and commerce users. Given the growing and evolving nature of the digital landscape, adhering to the IT Act is not just a legal requirement but also promotes ethical and responsible digital practices for OTT platforms.

MINISTRY OF INFORMATION & BROADCASTING I&B TAKES ACTION AGAINST OBSCENE CONTENT ON OTT PLATFORMS

In a recent development, the Ministry of Information & Broadcasting (I&B) has taken decisive action against a total of 18 OTT platforms found to be broadcasting obscene, vulgar, and pornographic content. The initiation of this move was due to the number of warnings issued by the Union Minister of Information & Broadcasting, Shri Anurag Singh Thakur, emphasising the platforms to take care of decency standards and refrain from propagating obscenity under the guise of ‘creative expression’.

The action, coordinated with various intermediaries, including 19 websites, 10 apps (7 on Google Play Store and 3 on Apple App Store), and 57 associated social media accounts, aimed at blocking public access to these platforms across India. The decision was undertaken by following the guidelines of the IT Act, 2000, with inputs and consultations from other Ministries/Departments of the Government of India and domain experts specialising in media and entertainment, women’s rights, and child rights. [4]

The blocked OTT streaming services include: Dreams Films, Voovi, Yessma, Uncut Adda, Tri Flicks, X Prime, Neon-X VIP, Besharams, Hunters, Rabbit, Xtramood, Nuefliks, MoodX, Mojflix, Hot Shots VIP, Fugi, Chikooflix and Prime Play.

A considerable ratio of the content posted on these platforms was found obscene and vulgar, and the way women were portrayed was degrading. It depicted nude and sexual acts in various inappropriate contexts, such as those of a student and a teacher, incestuous family relationships, etc. In the content, there were sexual innuendos, which were sometimes seen as provoking and prolonged sexually explicit scenes that had no meaning and were devoid of any thematic or societal relevance. This content was prima facie in violation of Sections 67 and 67A of the IT Act, Section 292 of the IPC, and Section 4 of the Indecent Representation of Women (Prohibition) Act, 1986. [7]

Significant Viewership

One of the OTT apps exceeded over one crore downloads, while two others had over 50 lakh downloads on the Google Play Store. Besides, the OTT services relied heavily on social media to inform fans about the movie and broadcaster. They even used trailers, short video scenes, and external links to draw these audiences to their websites and apps. The platforms under consideration had 32 lakh followers on their social media channels.

Government’s Commitment to OTT Industry

The Ministry of I&B has proactively cooperated with OTT platforms and their self-regulatory bodies established under the IT (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 (IT Rules, 2021) through meetings, webinars, workshops, etc. These efforts aim to sensitise platforms about their responsibilities and ensure compliance with relevant laws and regulations. [4]

However, India’s government greatly supports the OTT industry and its developmental needs. Among these initiatives are the 54^th International Film Festival of India, OTT Award for Web Series, industry partnerships of the Media and Entertainment sector with the OTT platforms and the establishment of a light-touch regulatory framework with an emphasis on self-regulation under the IT Rules, 2021.

LEGAL COMPLIANCES UNDER INDIAN LAWS

Legal compliance for OTT platforms in India is a complex task, necessitating adherence to various laws, regulations, rules and guidelines imposed by the government to ensure responsible broadcasting and dissemination of content for user protection. The central regulatory framework for OTT platforms can be found in the Information Technology Act, 2000, the primary law for digital operations in India. While the Information Technology (Intermediary Guidelines), 2011 applied solely to intermediaries, the 2021 Rules cover intermediaries and publishers of digital content, including OTT platforms (under publisher of online curated content). [9] Hence, the OTT platforms must observe due diligence requirements to mitigate unlawful activities conducted through their platforms under Section 79 of the IT Act. Furthermore, Section 67 of the act empowers the government to issue directions for blocking access to content deemed against public interest or national security, further emphasising regulatory oversight. [2]

Also, the IT Rules, 2021 [6], issued under the IT Act, states the obligations of the OTT platforms. These rules would mandate that the OTT platforms adhere to Code of Ethics and self-regulation, including content classification into age-appropriate categories, availability of parental locks, and a redressal mechanism for grievances. Moreover, OTT platforms are required to appoint key personnel, such as a Chief Compliance Officer [Rule 4 (1)(a)], a nodal contact person for coordination with law enforcement agencies [Rule 4 (1)(b)], and a Resident Grievance Officer, to ensure effective compliance with the regulations [Rule 4 (1)(b)]. [8]

Further, OTT platforms are subject to The Cable Television Networks (Regulation) Act, 1995 and Rules 1994, which are primarily applicable to cable television (CTV) but also extend to OTT platforms with TV-like content, which was also reiterated in the case of Justice for Rights Foundation V. Union of India.[3] These regulations prescribe compliance with programming and advertising standards, including restrictions on content that may offend decency and morality or incite violence. Furthermore, Section 292 under the Indian Penal Code aims to prevent the sale, distribution, and possession of obscene materials with penalties for violations. Lastly, the Indecent Representation of Women (Prohibition) Act, 1986, prohibits the indecent representation of women through advertisements, publications, or any form of media.[5]

CONCLUSION

Indian laws and regulations play a crucial role in the activities of OTT companies because they have to abide by them to function legally and responsibly within the digital ecosystem.  The most recent action by the Ministry of Information & Broadcasting signifies the importance of complying with the prescribed legal regulations. Legal compliance should be a top priority for the OTT platforms, which, in turn, can be a way to create a safe, secure, and reliable digital space in India for content consumption.

While legal compliance remains paramount for OTT platforms to operate within the Indian digital sphere, additional factors such as user privacy, data protection, and ethical content creation are equally crucial. By prioritising robust security measures and transparent privacy policies, OTT service providers can earn the trust of their audience and foster long-term relationships. As the digital media landscape grows, OTT platforms have an exclusive opportunity to drive social change, promote diversity and inclusion, and contribute to a more inclusive society.

Author: Rinsha Narayanan, in case of any queries please contact/write back to us via email to chhavi@khuranaandkhurana.com or at  Khurana & Khurana, Advocates and IP Attorney.

 REFERENCES

[1]https://www.communicationstoday.co.in/regulation-of-ott-platforms-in-india/#:~:text=As%20per%20the%20rules%2C%20OTT,block%20content%20in%20exceptional%20cases.

[2] https://www.indiacode.nic.in/bitstream/123456789/1999/1/A2000-21%20%281%29.pdf

[3] https://www.khuranaandkhurana.com/2023/05/10/legal-framework-for-over-the-top-ott-platforms-and-apps-in-india-a-comprehensive-analysis/

[4] https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2014477

[5] https://www.indiacode.nic.in/bitstream/123456789/1768/1/198660.pdf

[6]https://mib.gov.in/sites/default/files/IT%28Intermediary%20Guidelines%20and%20Digital%20Media%20Ethics%20Code%29%20Rules%2C%202021%20English.pdf

[7]https://lawbeat.in/sites/default/files/2024-03/Press%20Information%20Bureau%20Vulgar%20OTT%20Block%2014%3A3%3A24.pdf

[8]https://www.lexology.com/library/detail.aspx?g=7baf856b-44a1-4357-ac60-7c1c58471192

[9]https://ccgnludelhi.wordpress.com/2022/02/17/guest-post-the-2021-intermediary-guidelines-and-their-impact-on-ott-platforms/#:~:text=While%20the%20Informatio%20Technology%20(Intermediary,publisher%20of%20online%20curated%20content).