Case No. 24 of 2015. Case: K. Sera Sera Digital Cinema Pvt. Ltd. Vs NBC Universal Media Distribution Services Pvt. Ltd. and Ors.. Competition Commision of India

Case NumberCase No. 24 of 2015
Party NameK. Sera Sera Digital Cinema Pvt. Ltd. Vs NBC Universal Media Distribution Services Pvt. Ltd. and Ors.
JudgesAshok Chawla, Chairperson, S.L. Bunker, Sudhir Mital, Augustine Peter, U.C. Nahta and M.S. Sahoo, Members
IssueCompetition Act, 2002 - Sections 19(1)(a), 26(1), 26(2), 3, 3(3), 4
Judgement DateJune 04, 2015
CourtCompetition Commision of India

Judgment:

  1. The present information has been filed under section 19(1)(a) of the Competition Act, 2002 (the 'Act') by M/s. K Sera Sera Digital Cinema Pvt. Ltd. through its Regional Head (North) Mr. Dheeraj Salian (hereinafter referred to as the 'Informant') against M/s. NBC Universal Media Distribution Services Pvt. Ltd. (hereinafter referred to as 'OP 1'), M/s. UFO Movies India Ltd. (hereinafter referred to as 'OP 2') and M/s. Real Image Media Technologies (Pvt.) Ltd. (hereinafter referred to as 'OP 3') alleging, inter-alia, contravention of the provisions of sections 3 and 4 of the Act.

  2. As per the information, the Informant is a digital cinema service provider company engaged in digital projection and screening of films in India through a specific technology known as its proprietary Sky Cinex Technology. It has been submitted that the Informant is among India's leading digital cinema service provider having tie-up with as many as 300 cinema theatres across India.

  3. It is submitted that the Informant has its projectors and servers installed and connected to over 300 movie theatres across India to provide its services. The cost of installation of one such system is stated to be Rs. 15,00,000/- approx. per theatre, which is borne by the Informant itself being the service provider. The Informant is said to have made huge investment in the course of its business.

  4. It is submitted in the information that OP 1 is a subsidiary distribution company of M/s. Universal Studios (Producer of Fast and Furious 7) in India. OP 2 and OP 3 are also stated to be engaged in digital cinema services having tie-ups with more than 2000 theatres across India. It is further stated that the services and technologies, as provided by OP 2 and OP 3, are akin to the services and technology of the Informant.

  5. It is submitted that the process of distribution and exhibition of movies, in the past few years, have undergone various complex technological changes to cut the production cost and counter piracy. Instead of the old practice of movie distribution/exhibition which involved making of reels and distribution of the same by manufacturing the motion picture reel film copies in multiple numbers, digital technology such as hard drives, internet, dedicated satellite links is used to distribute or project movies at even the most remote locations. It is further averred that a digital movie server and projector is installed now-a-days in each cinema/theatre by digital...

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