The Delhi High Court has provided interim relief to Prime Video by restraining Aashirvad Cinemas from selling the OTT rights of the Drishyam franchise to any third party. In a recently issued ex-parte order, Justice Harish Vaidyanathan Shankar acted to protect the commercial interests of the Prime Video owner Amazon Seller Services. Recently, Amazon filed a petition at the court asserting that a 2020 agreement secured its rights over all future titles in the popular film series. “Till the next date of hearing, the Respondents are restrained from creating or otherwise dealing with any third-party rights in respect of the non-linear internet-based rights in the film tentatively titled Drishyam 3," reads an excerpt from the court's order, as quoted by Bar and Bench.
This contract included a crucial clause that presented Amazon with the exclusive right to negotiate license renewals for any new project that gets green-lit in the franchise and that prohibits the production house from engaging with third parties during these negotiations. A conflict erupted when Aashirvad Cinemas allegedly breached the agreement unilaterally while negotiations were still ongoing as the studio wanted to pursue alternative offers.
Amazon subsequently filed for interim measures under Section 9 of the Arbitration and Conciliation Act to safeguard its contractual rights and its stake in the upcoming Drishyam 3.
The Court’s injunction applies to the nonlinear internet-based rights for Drishyam 3, covering the Malayalam original, its dubbed iterations, and the Hindi remake.
During a recent follow-up hearing, the Court has been informed that both parties are currently negotiating a mutual settlement. They are expected to resolve the dispute within two weeks. Meanwhile, the Court has scheduled the next hearing for May 15, and the injunction against Aashirvad Cinemas will remain in force until that date.