Court Restrains Hyatt Hotels from Unauthorized Use of Novex Communications’ Music

In a significant decision on intellectual property rights, the Delhi High Court restrained Hyatt India Consultancy Pvt. Ltd. from using copyrighted sound recordings without proper authorization. The case was brought by Novex Communications Private Limited, a leading broadcasting and media solutions company, against Hyatt for infringing upon its exclusive rights over sound recordings. The Court issued an ex-parte ad interim injunction barring Hyatt and its associates from further using or publicly performing the plaintiff’s sound recordings without a valid license.

Brief Facts of the Case

• Novex Communications Private Limited is a well-established entity specializing in broadcasting, media solutions, and music licensing, holding rights over numerous sound recordings from various prominent music labels, including Zee Entertainment Enterprises, Tips Industries, and Think Music.
• The plaintiff filed a case against Hyatt India Consultancy Pvt. Ltd., which operates several hotels under brands such as Hyatt and Andaz, for unauthorized use of its copyrighted music in events and public performances.
• The plaintiff discovered Hyatt was using its sound recordings at multiple events, including a New Year’s Eve event at Andaz Delhi on 31st December 2023, without obtaining the required licenses.
• Despite issuing multiple cease-and-desist notices, Hyatt failed to regularize the situation and continued using the music at its venues.

Contentions of the Plaintiff

• The plaintiff argued that its rights over the sound recordings were indisputable, as they were assigned through valid agreements with leading music labels.
• The defendants had previously obtained licenses from the plaintiff for similar uses but failed to do so in this instance, deriving commercial benefits from the unauthorized use of the music.
• It was also contended that such unauthorized use could deter other entities from obtaining licenses, further harming the plaintiff’s business and the already fragile music industry.

Contentions of the Defendants

• Hyatt India denied the allegations, claiming they had not infringed any copyright and disputed the plaintiff’s claims.
• The defendants argued that the cheques were lodged and submitted for clearing but faced setbacks due to technical issues and strikes, thus delaying the transactions.

Observations by the Delhi High Court

• Justice Saurabh Banerjee, presiding over the case, noted that Hyatt was not new to the industry and was fully aware of the plaintiff’s ownership of the sound recordings.
• The Court found that Hyatt India had previously obtained licenses but failed to do so in this instance, clearly infringing the plaintiff’s copyright.
• The Court emphasized that Hyatt was benefiting commercially by using the plaintiff’s sound recordings without proper authorization.
• The Court also highlighted that the plaintiff had established a prima facie case, and the balance of convenience favored granting an injunction.

Court’s Order

• The Delhi High Court granted an ex-parte ad interim injunction, restraining Hyatt India and its associates, partners, and representatives from using or publicly performing the plaintiff’s sound recordings without a valid license.
• The Court directed Hyatt India to ensure that all their properties across the country, including those under the Hyatt and Andaz brands, comply with this order.

Novex Communications Private Limited v. Hyatt India Consultancy Pvt Ltd. Case Number: CS(COMM) 770/2024