Home | Feedback | Contact Us
Legal Articles  


Silver Screen at the doorstep of Legal Box-Office

Right now there is an exceptional circumstance where the battle between Film makers and Box office merchants actually hindering mass viewers to watch new movies, which will hopefully come to an end before the conflict, enters into legal battle field writes Debshikha Dutta.
BOLLYWOOD……..!!! INDIA's synonymous to the America's mega Hollywood, is the most popular Indian film industry. Worldwide it is known for making one of the finest and larger than life cinematographic arts in the Hindi language. Surprisingly and second to none, the Indian film industry takes the credit of releasing the largest numbers of movies in any one single year in the whole world. Therefore, it would not be lesser to mention that this industry thrives on a huge mass support and fan following, and thus, has the maximum number movie viewers in the whole world.

Ironically, the industry is currently undergoing a rough patch of its time. There are no new Hindi movies in Multiplexes for viewers to watch, in face having no new releases for almost a month. In India, Hindi film considered to be as or more popular than national sport, has made a mark of its own over the last century. At present, it has held all its new movie releases over a conflict between producers and exhibitors. The forum of producers and distributors are fighting for their rights against exhibitors.

Backdrop

The journey is almost a century old wherein it started in the year 1912 with a small step and thereafter it has come a long way. It also has the credit of contributing significantly in the economic growth of the country and was surely one of the fastest growing Indian industries. Having come a long way after that, it is predicted that the Indian film industry would grow at a Compound Annual Growth Rate ("CAGR") of 16 per cent to INR 175 billion (US$ 4.42 billion) by 2011. Bollywood alone created a worldwide wave in the history of any economic growth of any entertainment sector inter alia with other sub-sectors of media and entertainment such as TV & Radio, Advertising, Music, Fashion Design, Industrial Design, Architecture, Event Management, Performing Arts, Commercial Arts, Book Publishing, Print Media, Animation and Games.

The recent alliance with big west entertainment giants like Walt Disney and Warner Group are surely taking Bollywood leaps and bounds ahead from its current time and also leading India to a platform where it would become the most favourble destination for many global production units of film sector. Certainly the opening of Indian film industry to Foreign Direct Investment is itself stepping into a larger and worldwide network.

Rules & Regulations

Ministry of Information and Broadcasting is the apex body for formulation and administration of laws, rules and regulations relating to information, broadcasting, the press and films and principally the media and entertainment industry comes under this aegis. Apart from the Central law i.e. Copyright Act, 1957, various other regulation and taxation on cinema exhibition such as Cinema Exhibitions Rules, Entertainment Tax Regulations, etc., are dealt with by State Governments resultant in subjectivity. The current problem is due to multiplicity and non-standardisation in laws governing this sector.

The Indian film industry is also monitored by a boutique of different bodies like Indian Motion Picture Producers' Association (IMPPA), Film Television Producers' Guild of India, The Association of Motion Pictures and Television Programme Producers (AMPTPP), The Film Writers Association (FWA) who are constantly in action for the development, growth, regularity as well equality of the people involved in different sectors of this cosmic fraternity.

Foreign Direct Investment

As per the Foreign Direct Investment Policy ("FDI") of India, the FDI the film industry is permitted up to 100 percent through the automatic route, with no entry level condition currently in areas like film production, exhibition and distribution including related services and/or products.

Multiplex Boom

On the brink of multiplex revolution, most cinema halls in India are getting upgraded to multiplexes. India is the first commercially activated digital cinema market in Asia which will improve the quality of prints and thereby make film viewing a more pleasurable experience. Digital distribution and exhibition of cinemas will be able to eliminate piracy by using sophisticated encryption technology. It is another way to combat piracy, even if not in its entirety which is a common threat to media and entertainment all over the world.

Tussle in Tinsel Town

Currently, this wide known industry is facing its rough patch in relation to its film exhibitions. The Hindi Film Producers demand of an equal (50:50) revenue sharing model as per the current international norm for all production houses is being refused by exhibitors for quite sometime. Adding to their dismay, the producers are feeling the pinch and consider themselves deprived and least benefited in view of the fact that Multiplexes have been reaping huge profits since the Indian Government took steps in 1990s to flourish Multiplex by declaring five year Tax Holidays. Unrelentingly, Multiplexes have always denied sharing this benefit with producers, distributors or even customer and have continued to overcharge the viewers for their own profits.

After months of struggle, the producers and distributors forum seems to have come to a common decision and have almost stopped any new film release from early March, 2009 in any multiplexes in the country. As a result, from first week of April, 2009 the said forum has poised marketing and distributing of all new releases awaited to come on silver screens. New concerns like ticket price and entertainment tax are also coming into the picture due to current tug of war between producers and multiplexes. As the Entertainment Tax is a State subject which varies all over India, it actually creates puzzlement for the producers and distributors to have a fair or equal right all over India.

Whether within the capacity of State Government and/or Central Government, unless either of them do not intervene in this situation, there barely seems to be any ray of hope for this fiasco to be resolved before it gets murkier. As in India due to constitutional framework, it is not feasible for the Central to interfere in a State subject, but nevertheless, we can always hope for everyone's focal point to help in coming to a common solution.

As King Khan (Mr. Shahrukh Khan) fairly put this movement, "Fair rights for Friday Nights"; I would conclude with a positive note that soon Viewers would also have their fair rights along with Producers and Distributors, not by letting Silver Screen touching legal jumble, but by way of New Movies knocking at box-office on Friday Nights.

DEBSHIKHA DUTTA is a Barrister-at-Law at FoxMandal Little & Co. at its Delhi office.
 
© 2007 India Law Journal   Permission and Rights | Disclaimer