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Foreign Direct Investments (FDI) in Media & Entertainment in India-1: Lawyers Advice

 > E Commerce  > Foreign Direct Investments (FDI) in Media & Entertainment in India-1: Lawyers Advice

Foreign Direct Investments (FDI) in Media & Entertainment in India-1: Lawyers Advice

Entering Indian Market:
• Foreign investors are permitted to enter the market by investing upto 49% in Terrestrial Broadcasting FM FM(Radio) or the Up-linking of News & Current Affairs TV Channels under the Government route wherein prior permission of the Government is required.
• Investors can also enter the market by investing 100% FDI in the Non-News & Current Affairs TV Channels under the automatic route, where permission from the Government is not required.
• Investment can be carried out under print media as well where 26% FDI in print media is permitted but under the Government route.
• Acquisition of stocks or shares of the domestic market.
• Joint Ventures between different sectors of media and entertainment industry.

Best Locations:
• Maharashtra (Mumbai, Pune)
• Telangana (Hyderabad)
• Andhra Pradesh
• Delhi

Achievements Made by Indian Corporations:
• In the Information and Broadcasting sector, FDI grew from US$ 1.5 billion to US$ 2.8 billion from 2014-2017.
• Walt Disney Company has acquired a controlling stake in UTV Software Communications to expand the market.
• In 2018, PVR Ltd. acquired SPI Cinema for US$ 94.22 million

Demand in the Market i.e. India & Abroad:
• The Indian media and entertainment industry is expected to reach around Rs 3,07,000 crores (US$ 43.93 billion) by 2024.
• Media and entertainment Industry is set to expand at a Compound Annual Growth Rate (CAGR) of 13.5 per cent over 2019-24.
• The television market size as of 2019 is US$ 10.22 billion, while print and films market size is around US$ 4.46 billion and US$ 2.62 billion respectively.

Existing Notable Players in The Market- Domestic & Foreign:
• Walt Disney Company (Foreign Industry)
• NBC Universal (Foreign Industry)
• Sony (Domestic Industry)
• Star Gold (Domestic Industry)

Applicable Laws:
• The Copyright Act, 1957: This act protects original literary, artistic, dramatic, musical work and ensures protection from any unauthorised copyright and remedies in case of any infringement.
• The Trade Marks Act, 1999: This act protects the names, words, titles, graphics, shapes of products and provides remedies for infringement of any trademark.
• Cable Television Network (Regulation) Act, 1994: This act regulates the mandatory registration of cable operators.
• Program and Advertising Code under the Cable Television Network Rules, 1994: This act regulates the content of a program through cable television.
• Policy Guidelines for Uplinking of Television Channels from India: This policy regulates the applicant to avail an uplinking license for uplinking television channels from India.
• Policy Guidelines for Downlinking of Television Channels from India: This policy regulates the applicant to avail a downlinking license for downlinking television channels from India.
• Direct-To-Home Guidelines: Provides for the procedure for obtaining a license to set up a Direct-to-Home (DTH) service.
• Cinematographic Act, 1952: This act regulates and certifies films on the basis of their content with respect to public order, decency and morality.

Documents and Agreements:
• Copyright Licensing Agreement or Trademark Licensing or Franchise Agreement: Agreements between the licensor and licensee for protecting the Intellectual Property Rights (IPR) and ensuring protection from any unauthorised copying and remedies in case of any infringement.
• Non-Disclosure Agreement (NDA): Wherever necessary an NDA for protection of trade secrets, functioning of the company, etc. between the licensor and licensee or third party.
• Invention Assignment Agreement: In this agreement, the employer shall have rights over any creations of the employee during his employment.
• Music License Agreement: This agreement is between the creator of music and third party to license the music and also give him the right to publish or distribute the music.
Authored By: Adv. Anant Sharma

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