Bombay High Court Directs Video Sharing Platform Triller To Pay USD 300,000 To Zee Entertainment For Use Of Copyrighted Music

Justice Kamal Khata in Zee's suit for recovery of the amount observed that Triller has a history of litigations in the United States and might attempt to dispose of its assets in India to evade its obligations.

“The Defendant (Triller) has not produced any material to show its ability or capacity to repay the admitted debt. It is apparent that the Defendant is seeking to delay the inevitable in the garb of these defences and alienate properties to deprive the Plaintiff of its rightful dues. In my view the court cannot turn a blind eye and allow a party to take untenable defences and make a mockery out of the system”, the court held.

The court also directed Triller to pay an interest of 18 percent from the date of filing of the suit till the payment of the amount.

Triller Inc., a US based company, operates service which enables users to create and share short-form videos, including those synchronized to music through artificial intelligence.

Zee Entertainment and Triller executed a Record Music License Agreement on October 13, 2020, which granted Triller a limited license to use Zee Entertainment's copyrighted music from July 1, 2020 to June 20, 2021. Triller was contractually obligated to pay $600,000 plus taxes in four quarterly instalments. Later, an amendment dated September 15, 2021, extended the agreement for another year, maintaining the same terms, including the financial aspect.

Zee Entertainment claimed that Triller failed to make payments for the third and fourth instalments despite continuing to use the licensed works. It sent reminder notices and, subsequently, a legal notice to Triller, demanding payment of the outstanding sum, along with interest at 18% per annum.

Triller assured payment of the third instalment by October 31, 2022, and the fourth instalment by January 29, 2023. Zee Entertainment accepted these revised timelines but with the condition that any further delay would incur an 18% annual interest.

However, Triller did not make the promised payments within the agreed timelines. Thus, Zee Entertainment filed the present Recovery Suit. It also filed and Interim Application seeking attachment of all moveable and immovable properties of Triller available in India.

Advocate Priyank Kapadia for Zee Entertainment contended that Triller is a habitual defaulter and several litigations are pending before various courts in the USA against it. Triller might attempt to sell or dispose of its assets in India to wriggle out of its obligations, he said. He further argued that since Triller is based USA, it is impossible for Zee Entertainment to monitor its financial soundness.

Advocate Malhar Zatakia for Triller argued that the suit was premature and Zee Entertainment filed the Interim Application without complying with mandatory pre-suit mediation under Section 12-A of the Commercial Courts Act, 2015. He also contended that there were no outstanding payments, and any offers made for settlement were made in good faith. Further, he asserted that Triller had not agreed to pay interest on the principal amount in case of delay.

The court noted that Triller didn’t dispute that it exploited the works licensed to it by Zee Entertainment. Further, from the invoices and notices sent by Zee Entertainment which were never disputed by Triller, the court found that an interest rate of 18 percent was payable in case of delay.

The court rejected Triller's argument that the suit is premature, emphasizing that the outstanding dues were overdue by more than six months. It also dismissed Triller’s defence that there is no urgency as Zee Entertainment did not press for interim reliefs till June 2023.

“It is common knowledge that parties would stay their hands during settlement talks and if any party would proceed, normally the talks would fail on such action by the party. It does not lie in the mouth of the Defendant to take such a defence after having received the benefit”, said the court.

The court further held that Zee Entertainment is not trying to circumvent the requirement of mediation as least two or three attempts to settle the matter have failed.

Thus, the court decreed the suit in favour of Zee Entertainment and directed Triller to pay costs of Rs. 2.5 Lakhs to Zee Entertainment. The court allowed Zee Entertainment to proceed with execution without drawing up of the decree.

Case no. – Commercial Summary Suit (L) No. 2658 of 2023

Case Title – Zee Entertainment Enterprises Limited v. Triller Inc.