Saket District Court Imposes Rs.20 Lakh Cost For Copyright Infringement Of Software
The Saket District Commercial Court with its Bench comprising Justice Lokesh Kumar Sharma has imposed a penalty on Invent Cast Pvt. Ltd for infringing the copyright of software developed by Seimen Industries Inc. The court found that Invent Cast was using the NX software (formerly Unigraphics) without a license. Consequently, the court imposed a fine of ₹20 lakh and issued a...
The Saket District Commercial Court with its Bench comprising Justice Lokesh Kumar Sharma has imposed a penalty on Invent Cast Pvt. Ltd for infringing the copyright of software developed by Seimen Industries Inc. The court found that Invent Cast was using the NX software (formerly Unigraphics) without a license. Consequently, the court imposed a fine of ₹20 lakh and issued a permanent injunction, prohibiting the company from using the plaintiff's software without proper licensing and authorization.
Facts of Case
Seimen Industry Inc., a globally recognized software developer based in the United States with presence in various countries specializing in developing and managing Product Lifecycle Management (PLM) software. The second plaintiff is the authorized personnel for marketing the software and managing the company's operations in India, headquartered in Delhi. The plaintiff's software was developed to digitally manage product information and could be used at all stages of a product's lifecycle, from conception and planning to manufacturing and disposal. The third and fourth defendants are companies engaged in the manufacturing of casting metal parts, employing CAD/CAM technologies for creating molds and other related work. The defendant companies had been using the software developed and copyrighted by the plaintiff, NX CAD/CAM (Unigraphics).
In March 2022, Seimen Industries was informed through a market source that the defendants manufacturing unit situated in Gujarat was using unauthorized copies of the Seimen's NX (Unigraphics) software. After verifying the validity of the defendants' licenses within their database, the plaintiff discovered that Invest cast (third defendant) possessed one license for NX CAD/CAM 3 Axis Milling Found (NL), the maintenance and subscription for which had already expired. Further investigation revealed that Precise Technocast (fourth defendant) lacked any license to use the Seimen's software. It was stated that the defendants were involved in the unlicensed usage of the plaintiff's software, particularly NX (Unigraphics).
The plaintiff assigned a private investigator to investigate the extent of the copyright infringement. The investigation found that the defendants were using the plaintiff's software unauthorized. Further investigation revealed that NX (Unigraphics) was being used on at least three computer systems in the design department of the defendants' manufacturing and design unit without a valid license.
A suit was filed before the court by the plaintiff claiming that the Defendants engaged in the unlicensed use of the Plaintiffs' software, thereby wilfully violating the Plaintiffs' copyright in their computer programs. It was alleged that counterfeit or cracked licenses of the Plaintiffs' software, NX, allowed users to access the software and its features without restrictions on multiple systems at the same time. Additionally, it was submitted that a cracked NX license file enabled unlimited access to more than 400 features of the software across any number of computers. As per the plaintiff, this was a direct contravention of the terms of the Master License Agreement (MLA) and a violation of the plaintiff's copyright.
Therefore the plaintiff claiming to have suffered loss and reputational harm sought damages of Rs 20 Lakh. The plaintiff also sought that the defendants be directed to restrain from using the plaintiff's software by the defendant companies.
Submissions of Defendants
The counsel for the Defendants argued that the Seimen's India was not authorized to file the copyright claim, as the power of attorney held by the second plaintiff was not bona fide. It was asserted that the plaintiff had failed to submit the necessary assignment document required to claim the benefits of a copyright infringement. Additionally it was contended that since the first petitioner had registered the copyright outside India and the second plaintiff was not duly appointed, the suit was defective due to the non-joinder of necessary parties.
Findings of the court
In determining whether the plaintiffs had the necessary capacity to sue, the court noted that the presence of the person in whose favour the power of attorney was executed was not required at the time of execution. The court rejected the contention of the Defendant observing that the principal could ratify the actions of their attorney because the first plaintiff, the original copyright owner, did not object to the individuals appearing as attorneys.
The court found that the defendants had infringed the copyright of the first plaintiff by installing, reproducing, and using unlicensed versions of the first plaintiff's software, NX, thereby violating the first plaintiff's exclusive rights. However, the plaintiff failed to provide any credible evidence against the fourth defendant, and no liability was held against them.Additionally, the petitioner's claim for ₹16.59 crores in additional damages was rejected due to a lack of concrete proof of recent or ongoing infringement, rendering the claim unsustainable.
Holding that the defendant had violated the copyright of the petitioner, the court granted a permanent injunction against Defendants No. 1 to 3 and their associates, prohibiting them from using, reproducing, or installing expired or unlicensed versions of the plaintiffs' software, including 'NX' (Unigraphics), until they obtain valid licenses. The defendants were also directed to pay ₹20 lakhs in damages with 8% annual interest from the suit's filing date until realization, along with the suit's costs
Case Title : Siemens Industry Software Inc. & Anr. Vs. Mr. Dharmeshbhai R Sankharva & Anr.
