Summary
The post examines the ongoing copyright dispute between Flipkart and Westland regarding the unauthorized online sale of Amish Tripathi's book, despite an exclusive agreement with Amazon. It discusses the growing trend of exclusive book deals between publishers and e-commerce platforms, and the resulting legal challenges. The article highlights the ambiguity in Indian law regarding the liability of e-retailers as intermediaries for copyright infringement by third-party sellers. Recent legal actions against platforms like Snapdeal and Amazon are also referenced. The post concludes by noting the need for judicial clarity on the extent of liability for online intermediaries in India.
Background
Westland, a Tata-owned entity, sued Flipkart for alleged infringement under the Copyright Act and the Information Technology Act for the unauthorised online sale of Amish Tripathi’s book Scion of Ikshvaku. Westland had entered into an exclusive agreement with Amazon for a period of two months to sell the book online. The lawsuit arose because Flipkart continued to offer the book for sale despite that exclusive arrangement.
Flipkart denied all allegations, contending that it functions only as a link between the customer and the seller and that it allows sellers the freedom to offer goods of their choice. The Delhi High Court refrained from passing a restraint order against Flipkart and directed it to file a reply by 4th August, 2015.
The Pattern of Exclusive Online Deals
Exclusive deals between publishers and e-commerce platforms have become increasingly common. These arrangements allow platforms to capitalise on demand for high-profile titles. For the launch of Scion of Ikshvaku, Amazon arranged for signed copies to be delivered to readers at midnight. The commercial appeal of these deals to both publishers and platforms is significant.
A similar dispute had arisen the previous year when Flipkart held the exclusive right to sell Chetan Bhagat’s book Half Girlfriend, but the book also appeared on Amazon. The recurring question is not simply about competition between e-retail platforms, but about the extent to which these platforms, as intermediaries between buyers and sellers, can be held liable for the acts of the sellers operating on their platforms.
Intermediary Liability and Recent Cases
The legal position on intermediary liability in India remains unsettled. The present case is one of a recent series of disputes against online retailers. In the same period, Nalli, the Chennai-based silk saree retailer, issued a cease and desist notice to Snapdeal for unauthorised use of its trademarks and photographs, following which Snapdeal removed all infringing material from its website. In May 2015, Shree Meena Creations filed a suit against Flipkart, Amazon, and eBay for selling replicas of its copyrighted sarees, though the matter was not admitted by the court.
The outcome of proceedings in the Westland case was expected to provide some clarity on the liability of e-retailers when exclusive distribution rights are infringed by third-party sellers operating on their platforms.
Disclaimer
This article is for general information and does not constitute legal advice. Readers should consult a qualified attorney before acting on any matter discussed here.