A Double-Edged Sword for Startups: Shark Tank India and Copyright Controversies

8th August, 2024 - 9:19 am Categories: Copyright 0 Comments

INTRODUCTION

The Indian version of the famous American TV show “Shark Tank India” has emerged as the guiding star of the sponsorship and investment for the small business.  For the prospect of turning those ideas into working companies, the start-ups present their ideas, products and services to a group of intelligent and wealthy businessmen/Women commonly known as the “sharks”. Today, due to this popularity, significant numbers of small companies around the globe consider this as their springboard.

Now an issue of controversy simply arose when Sparsh Agarwal, founder of Dorje Teas, posted on LinkedIn that Shark Tank India had sent them a copyright infringement notice. Claims of unauthorized use of portions from their pitch on the show for promotional uses on Meta and YouTube were made in the notice. Agarwal also said that 18 other businesses had similar experiences; some of their accounts were terminated by Google and Meta and their social media postings were flagged. This controversy, which pertains to Sony Entertainment and the OTT platform Sony LIV, which is owned by Culver Max Entertainment and operates as Sony Pictures Networks India, has affected the platform that was intended to strengthen India’s startup economy.

COPYRIGHT LAW CONSIDERATIONS FROM THE SHOW’S POINT OF VIEW

Shark Tank India is being produced by Culver Max Entertainment, which is strongly asserting its copyright proprietorship over the show’s content. The recorded shows of Shark Tank India fall under the category of ‘cinematograph films’ under the Copyright Act, 1957.  Culver Max Entertainment, which is the producer of Shark Tank India, is termed as the ‘author’ and the Copyright owner of the program inclusive of all video and voice recordings under Section 2(d)(v) as per the Act. It will feature another danger that participants may infringe the copyright by using segments of video or footage from the show without obtaining the permission from the copyright owner.

[Image Sources: Shutterstock]

The programme asserts that copyright laws compel action to safeguard their intellectual property rights and brand identity by prohibiting unauthorized usage. They must be proactive in guarding the show’s content integrity and value, thus claiming the role of the producer. The show continues to argue that any participation by the entrepreneurs using video portions or footage from Shark Tank India is copyright infringement whenever the permission of the copyright owner; Culver Max Entertainment, is not sought.

The guidelines for content usage have been issued by Shark Tank India to the participating startups. That is:

• Participant’s social media may only contain pictures and videos provided by the team of the show
• Then, he or she cannot use the shark tank India logo, photos, fonts, or videos on his or her website.
• Participants may only use “As Seen on Shark Tank India” and are not allowed to use words like “approved by shark tank India”,
• Startups must obtain a license from Sony or provide a hyperlink to Sony’s platform or YouTube channel from where their original pitch was broadcasted.

THE STARTUP’S POINT OF VIEW

The main counter-argument of the business entities that received the notice was that this is not in line with the “ethos of promoting small startups” and that it does not conform to the show’s remits of assisting budding start-ups in India. They also reasoned that the Sony executives made a wrong call because these startups invested a significant amount of money to boost the production value of Shark Tank India, which simultaneously gave the show ‘free advertising.’ The companies also argued that their respective investment and participation in the advertisement or promotion of this show should afford them some use for this content even if limited since this would be in the best interest of both parties.

It is under section 52(1) of the Indian Copyright Act, 1957 that the concept of fair dealing otherwise known as the ‘Fair use principle’ works as an exception and a restriction to the authors or owners of the contents exclusive rights to which the Copyright Act of 1957 grants. They comprise fair dealing for the purpose of private or personal use, including for research; for the purpose of criticism or comment, of the work in question or of any other work, and for the reporting of current events and matters for the purposes of a public lecture. However, to ensure that copyright owners and the public enjoyed their rights in a fair manner, these laws provide for certain purposes of pantomime, sideways, criticism, commentary, learning and research for non-commercial purposes without the consent of the copyright owner.

Nevertheless, entrepreneurs that receive copyright violation notices may assert the ‘de minimis’ defense, a legal principle that entails “the law does not concern itself with trivial matters (very small matters)”. This defense may be applicable if entrepreneurs can demonstrate two critical points: first, that the video bits to which reference was made where only clip sequences and, in any case, the bits utilized were so short that the infringement was negligible; second, the that its intention was not to make profit out of the producer’s copyright.

Additionally, Startups may assert performance rights under Section 2(q) of the Copyright Act, 1957 which defines “any live visual or acoustic presentation by one or more performers”. This may be a reasonable excuse if Shark Tank India had not already before they invest on them. Those participants who deliver their ideas and goods may not be obliged to infringement notices, as the statute considers them as performers.

CONCLUSION

A pivotal question that comes from the cases of businesses and Shark Tank India legal tussle is, how is it possible to grow businesses and safeguard Intellectual property rights at the same time. While Sony may not be legally wrong in their actions, the observed situation appears to be diametrically opposite to goals of the show – to promote and support endeavors of small businesses.

Programs like the Shark Tank India must probably reconsider their strategies concerning IP conflicts in view of this particular conflict. It emphasizes the fact that it would inflict major damage to the companies as well as to its players to not have an open understanding and agreement regarding it. In the context of the current case, it is imperative that businesses should be cautious and defensive of their self-interests while in the same respecting the law to reduce cases of infringement on other’s’ intellectual property rights.

This case emphasizes the requirement of transparency and the necessity of specific laws controlling social media, companies, and reality programs. Such problems might impede the growth of a business if open communication and well-defined policies are lacking. Startups should be entitled to enjoy Shark Tank without compromising their web profile. As Shark Tank India’s appeal keeps growing, companies need a response that not only protects intellectual property but also benefits them.

Author: Divya TM, 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

• https://www.afaqs.com/news/mktg/shark-tank-india-issues-legal-notices-to-pitchers-for-using-shows-content-for-promotions
• https://startupstars.in/latest-stories/shark-tank-india-vs-dorje-teas-a-hot-brewing-battle-of-rights/
• Aanya Kapoor, Shark Tank In Social Media Storm: Startups Clash With Sony & Meta, ATOM NEWS, Jun 2024

https://atomnews.in/news/shark-tank-in-social-media-storm/

• Bontu Venkata Durga Prasad, Startups Face Legal Woes Over Shark Tank India Clips: Sony Crackdown Sparks Debate, KARO STARTUP