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NIFTY23,4060.33%
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Indian Media Giant Zee Entertainment Sues Nykaa for Alleged Music Copyright Infringement

Zee Entertainment, a prominent Indian media company, has filed a lawsuit against fashion-to-beauty retailer Nykaa, seeking damages of $210,000. The lawsuit, filed on April 3 in the Delhi High Court, alleges that Nykaa used Zee's copyrighted songs in Instagram reels to promote its products, without securing the necessary permissions or authorizations.

According to the lawsuit documents, which were reviewed by Reuters, Zee has a licensing agreement with Meta Platforms that allows individuals to use its music in Instagram posts for non-commercial use. However, Nykaa allegedly used several of Zee's copyrighted songs in reels to promote products to millions of followers.

The lawsuit lists 12 Instagram reels, along with screenshots, where Nykaa allegedly used Zee's licensed music to promote its products in social media posts. In a brief hearing on Thursday, Nykaa's lawyer informed the court that the 12 flagged links had been taken down, following a court order.

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Nykaa allegedly used the music "without securing any permissions/authorizations from" Zee, according to the over 900-page lawsuit. Zee has asked the court to award 20 million rupees ($209,742) as compensation for Nykaa's illegal use of its music.

CompanyDamages Claimed
Zee Entertainment$209,742 (20 million rupees)

The case has significant implications for the advertising industry, as short-video formats have become a key tool for brands on social media platforms like Meta's Instagram. Marketing departments often use content available on music libraries without reading the fine print of Instagram's terms, according to Aditya Gupta, a partner at India's Ira Law. The decision in this case could provide much-needed clarity.

The case will next be heard on May 26.

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Investor Takeaway

Investors should be aware of potential copyright infringement risks in social media advertising.

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