Streaming and Stealing: The Role of Copyright in the OTT Industry’s Fight for Fair Play
Contributor: Bharghavi Snehal
In an era where content consumption has rapidly shifted from television screens to smartphones, the Over-the-Top (OTT) industry has become a battleground of creativity, convenience, and copyright. As platforms like Netflix, Disney+ Hotstar, Amazon Prime Video, and regional players such as ZEE5 and SonyLIV dominate the entertainment space, the legal machinery behind them becomes more critical than ever. At the heart of this machinery lies copyright law, which governs how content is licensed, protected, distributed, and sometimes pirated. This article takes a humanised dive into the evolving dynamics of copyright law in the streaming economy, bringing in real-life cases, policy developments, and practical challenges like geo-blocking and piracy that platforms and creators navigate daily.
Introduction: When Stories Travel Faster Than Law
Imagine this: You’re in Mumbai, eager to watch the newest Korean drama on Netflix, only to be greeted by the infamous message “This title isn’t available in your region.” You grumble, search for a VPN, and somehow get access. But legally speaking, what just happened?
That’s the complex web of copyright and territorial licensing in action.
OTT platforms have changed the way the world tells, consumes, and even thinks about stories. But in doing so, they’ve disrupted the traditional models of copyright and content licensing. While content may seem instantly accessible, the legal framework enabling its distribution is anything but simple.
Chapter I: Understanding Copyright in the OTT Universe
Copyright is the legal right granted to creators for their original works, be it films, TV shows, scripts, or music. It allows them to control how their work is used, for how long, and by whom. In India, this is governed by the Copyright Act, 1957, updated several times to meet technological shifts.
In the OTT landscape, copyright is more than a protective tool; it’s an enabler of business. Streaming platforms either:
- Own the content (as in Netflix Originals),
- License it from content creators, or
- Co-produce it through partnerships.
Each of these models involves specific legal rights and contractual obligations.
For instance, when Netflix India collaborated on “Delhi Crime,” the copyright for distribution, marketing, and global streaming rights had to be meticulously negotiated between Netflix, the production house, the scriptwriters, and even the background score composers.
Chapter II: The Licensing Puzzle Behind Every Streamed Scene
Licensing is the oxygen that allows OTT platforms to breathe. It determines:
- Which countries get access to a show,
- How long the rights last,
- What kind of use is allowed (download, offline, or only stream), and
- Revenue-sharing models between rights holders and platforms.
Take, for example, the much-publicised ZEE5 and ALTBalaji content partnership. Initially, content was shared between the two platforms for a fixed licensing fee. But disputes arose when content was geo-blocked or monetised beyond agreed-upon territories, eventually resulting in a legal standstill that affected viewers across South Asia.
Another instance is Amazon Prime Video’s exclusive rights for the IPL (Indian Premier League) in specific countries. The content couldn’t be aired in India due to Sony’s or JioCinema’s territorial rights. For users unaware of licensing structures, this seemed like irrational content hiding, but in reality, it was a textbook example of regional licensing limits.
Key Licensing Models:
- Exclusive License: Only one platform gets the right (like Netflix Originals).
- Non-Exclusive License: Multiple platforms can stream the same show.
- Syndicated Licensing: Rights bought in bulk across territories, e.g., HBO selling shows to Hotstar in India (until 2023).
Chapter III: Geo-Blocking—Legal Necessity or Digital Discrimination?
Geo-blocking is a practice where content is made inaccessible based on geographical location. While it frustrates users, it’s not arbitrary. Geo-blocking is used to comply with licensing agreements, where content is licensed only for certain regions due to exclusivity clauses or censorship laws.
Case in Point: The ‘Friends’ Debacle
In early 2022, Friends, the iconic American sitcom, was pulled from Netflix India and became available only on JioCinema after a new licensing agreement with Warner Bros. Discovery. Social media users complained, but legally, Netflix could no longer stream it in India due to expiration of rights.
Indian Legal Status:
There is no specific law in India regulating geo-blocking, but platforms often rely on Section 79 of the IT Act, 2000, which grants them immunity as intermediaries while allowing them to comply with copyright contracts.
In the EU, geo-blocking is actively regulated under the EU Geo-Blocking Regulation (2018), although it currently exempts audiovisual content. The regulation may soon be expanded, pressuring platforms to rethink cross-border licensing.
Chapter IV: The Piracy Plague in the Digital Era
One would assume piracy would reduce with content becoming cheaper and more accessible. Yet, piracy has only evolved.
From cam-rips in shady cinemas to HD screen recordings of OTT exclusives, modern piracy is stealthy, decentralised, and often backed by ad revenue.
Example: Tamilrockers & Movierulz
The notorious piracy site Tamilrockers leaked major OTT exclusives such as Mirzapur Season 2 and Tandav within hours of their release, costing crores in potential revenue. Despite government blocks and court injunctions, these sites quickly resurface under new domains.
Legal Measures Taken:
- Section 63 of the Copyright Act – Imprisonment and fines for copyright infringement.
- Dynamic Injunctions – Enabled by the Delhi High Court in Utv Software Communication v. 1337x.to (2019), where websites and their future clones could be blocked proactively.
- Cinematograph (Amendment) Act, 2023 – Now criminalises recording or transmitting films without permission, even digitally.
Despite these laws, enforcement remains a challenge. The global nature of the internet makes it hard to shut down piracy hubs located in countries with weak enforcement.
Chapter V: Real-World Challenges—Between Legal Theory and Practical Hurdles
- Short-Lived Content Ownership
Sometimes, OTT platforms lose rights overnight. In 2023, Disney+ Hotstar had to remove Marvel content temporarily in India due to contract renegotiations, leading to public outcry and subscription cancellations. - Moral Rights vs Platform Edits
There have been disputes where directors objected to content edits for OTT platforms, claiming moral rights under Section 57 of the Copyright Act. One such issue arose in The Family Man Season 2, where regional backlash forced the platform to make scene cuts, leading to creators questioning editorial interference. - Dubbed vs Original Language Rights
Licensing often excludes dubbing or subtitling, causing cultural access issues. For example, many anime shows on Netflix are only available in Japanese with English subtitles, due to lack of regional dubbing rights.
Chapter VI: The Future—Can Law Catch Up With Technology?
Emerging Trends:
- AI in Content Creation: Platforms are experimenting with AI-written scripts. Who owns the copyright then—the platform, the tool, or the original input provider?
- Smart Contracts: Blockchain-based licensing could soon automate royalty payments in real-time, ensuring better transparency.
- Global Licensing Models: As user frustration grows over geo-blocking, industry stakeholders are exploring single-window global licensing though it remains commercially unviable for most.
India’s Policy Response:
In late 2024, the Indian Ministry of Information and Broadcasting began consultations for a ‘Digital Content Code’, which may unify content regulation, licensing, and user rights under one umbrella. This could be a game-changer if implemented correctly.
Industry-Led Initiatives:
OTT giant includes Netflix, Amazon Prime, and Disney + Hotstar have jointly submitted a voluntary code to the Indian government proposing:
- Standardised take-down processes,
- AI-based piracy detection, and
- Licensing databases to reduce contract disputes.
Conclusion: Copyright as Both Shield and Compass
As OTT platforms become central to global entertainment, copyright law becomes more than a legal requirement it becomes a cultural necessity. It ensures that creators are compensated, platforms are protected, and viewers are provided with ethical access to content.
Yet, the legal system is playing catch-up. While lawmakers struggle to contain piracy and outdated licensing models, users continue to bypass geo-blocks and creators feel the pinch of territorial restrictions.
The path forward lies in transparent licensing, international collaboration, and adaptive copyright laws that recognise the fluid, borderless nature of digital storytelling.
In the end, copyright isn’t just about law. It’s about fairness to the creator, the distributor, and the viewer.
References
- Copyright Act, 1957 (India)
- Information Technology Act, 2000
- Cinematograph (Amendment) Act, 2023
- Utv Software Communication Ltd. v. 1337X.to & Ors., (2019)
- Geo-Blocking Regulation (EU) 2018/302
- MIB Press Briefing on Digital Content Regulation, Dec 2024
- Interviews from Netflix India Legal Affairs (2023, Livemint)
- Public Statements from ZEE5-ALTBalaji Licensing Dispute (2022)
