Bombay High Court, while adjudicating an application filed under section 8 of the Arbitration and Conciliation Act, 1996, in Eros International Media Limited v Telemax Links India Pvt Ltd, has held that intellectual property (IP) disputes arising out of an agreement are arbitrable if the agreement contains an arbitration clause.
Eros, an owner of films and audio-visual works, had entered into a term sheet (containing an arbitration clause) for granting content marketing and distribution rights to Telemax. Eros filed a civil suit against Telemax, claiming infringement of its copyrights. Telemax filed an application under section 8 stating that in view of the arbitration clause in the term sheet, the court should not entertain the dispute.
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