The entertainment and media industry of India is all set for a big growth trajectory. According to various estimates, India’s entertainment and media industry is expected to grow by 18 per cent over the next five years and is expected to become a 1.157 trillion industry by end of 2012.
Similarly, on regional levels as well the entertainment and media industry of India is anticipated to grow. For instance, the south Indian entertainment industry is expected to grow at 21,190 Crore. Further, this market is expected to grow at 14% over the next four years to reach 36,005 Crore.
The regulatory and business environment for entertainment and media industry of India is also maturing and becoming more favourable day by day. The recent Consolidated FDI Policy of India 2012 by DIPP allowed upto 49% foreign direct investment in broadcasting sector of India.
Now the Indian government has raised foreign direct investment (FDI) limit from 49% to 74% in various services of the broadcast sector, except television news channels and FM radio where the existing 26% limit will continue.
Similarly, online entertainment is the next big thing for studios and broadcasters. The biggest changes are expected in the Internet, television distribution, video games and casinos sectors.
Although this growth and development is happening in many countries yet a majority of this growth is expected from “BRIC” countries, i.e. Brazil, Russia, India and China. Undoubtedly, the huge markets of China and India are leading that growth. However, we need to consider the legal challenges; especially intellectual property rights (IPRs) issues in India, in order to fully benefit from this growth of entertainment and media industry.
This is so because with the projected growth there are also increasing cases of disputes as well. A majority of these disputes pertain to intellectual property rights (IPRs) issues. Indian media and entertainment industry may face the legal challenges of IPRs laws and cyber law of India. IPRs laws like copyright, trademark, etc may be frequently violated and occasionally invoked to redress IPRs violations of media and entertainment industry in India.
Similarly, online IPRs issues like domain name disputes may also be agitated in the future. Similarly, media and entertainment industry must keep in mind the mandates like “cyber due diligence in India” and other provisions of Information Technology Act, 2000. The cyber due diligence for press and media industry of India is also required.
Media and entertainment industry will also face technological challenges in future. For instance, the issues pertaining to digital preservation of entertainment industry products may assume significance in future. This requires a domain specific and techno-legal expertise that India may not currently possess. This situation requires a shift in the academic and professional education in India that needs to be suitably adopted keeping in mind the contemporary needs.
In nutshell, although the entertainment and media industry growth and challenges in India are imminent yet the legal issues of entertainment and media industry in India are going to increase. The media and entertainment industry of India must be well equipped to tackle these challenges. In other words, Indian media and entertainment legal challenges must be taken very seriously.
Areas like contract management and arbitration in media industry of India, technology and IPR issues associated with entertainment, advertising and media industry in India, etc also require special attention.
Perry4Law and PTLB believe that this research report would prove useful to media and entertainment industry of India.