Karnataka High Court
The Commissioner Of Income-Tax vs M/S Synopsis International Old Ltd., on 3 August, 2010
Bench: N.Kumar, B.V.Nagarathna
48 qualification to that effect such a qualifications implied. However, it is incumbent on those_.x_§gho" . that the definition given in the interpretation" 'claflu_sel'does not" it apply to a particular section to show t_,l1aAt:' the context so requires.
32. In this it note the opening words of Sectio_np:l'l4i_ that "for the purposes of the parliament in expressing that manner and not Section cannot be lost sight lias Chosen to employ the wcziijcl_'m<:ans' in Vd"::fi1'i:_i11g'the incaning oi the word 'copyright' V' \K5"hl':(',hi/, "'E1g23,.lI'l Ii1al{V(""S"'lIl.'l(? l,t1'llf;',i}l,lOI'l very clear lLh2?ll the said "';1tie2iar'1'i":1_gito' *;;li€,-- wc>1'c.*l "r;opy1'ight' is resttx*iciive amt} exlriaustive.
"Fhen tii'eeA'I._f1i1'thc*1' words. 'exclusive right SlIbj(?('Tl, to the provisio;ns of this Acif fui't;hcr imposes 21 rider on {lie ,Ene21z'ii1"ig of the word '("{)}§)y'i'l§;{hl_'. 'l"l'1o:.1gh iliie WOI'(l used is ;"exciusii\«'e rigliti". in SeCii<);i 30 of the Act. the Pai'lia1nem has providccl whz-it are the rights which the owners oi' a copyright K1121}! part with. It expressly states the owner of.' the copyriglicii in any e:~;isiing work may g_§I"c'lI"ll any intcrmsi in the 1'ig'l'1t by 52 rigilts inciuding the graax'1ating of a licence which not an extrmsive right or transfer of all rights in H or literary work. Payments made Mfor the it u partial rights in the Copyright I the It alienating the copyright rights-yvfll fepiesent the consideration is for of iise the programe in a license, constitute an_ In these circumstancesi«':;:the right to use the copyrightiin ;--. the rights that would 0the1V:h\Vx'r'ise"' of the copyright holder. 'i'E1<:ife'i"<>sf!<'v>;-- under the mcome Tax Act: it neat m=:e(':sVs2,xryirthat tiiere should be i1'ar.1sfe1' of excltisive . ik£'é:g-£;i1'L/ 211:1 e.Qpyi'ig;{hiL';'"'it is siifficient if there is trzéinsfer of any ier_{tfe:':e':'~:..t,h Ln" right and also 21 ii<:em'e and c<m.<3ic:ierati<>n 'pziid for' £;
<4 uafit of a licence Coristituics i'()y:i1t;y for the purpose of tthe':.said Clause in the Income 'I':u{ Act. it in this _ b§I'{31{gI"()1.EI1t(T}. the ciistfussimi \N'h(?Th<;31' Hie payment for a % copyright or for a c:0;:>y1"ig1"1i artirsic would be t<)'La1Iy irrelevaiit. The Crux of the issue is whether any ('/O£1Sid€'l'E1fi(f)F1 paid for any right or for grantii'1§.}; of licence in rcspecét 01" 21 (:<)py1'igi1t. Tile word 'in respect of _;;ives a
-es» 53 broader fi1E§E1,I'1iI1§§. It has been used in the sense'.of'beirig connected with. When the iegis1at1.11'<~* has aiidvié§z'jc11y:'i;1.serI the V' words 'in respect of. the intentioniisuciezzr and.niai:i_i'est'.--Vftiz; saiid phrase being capable of a b1'oad_er-meaning. the sa_n'1.(:
used in the Section to '(3I"iI1g_."£5fi)[}"iiiI1 i._hte--..1tzix fVi?ieiI""a'11 the' incomes from the tra:n_sI'er ,<)'i"";i1Ti"--<)r~ _ai1}.' of-.th.e rights in 1'tj',§5p{.'{?1' of the copyright.' C
33. is defined in Expln. 3 computer programme recorded" 'tape:,Rperforated media or other informationf and includes any such programme' or any customized electronic data. Though this if 'good for the purposes of second proviso to ordinary meaning and understanding of fcofmput.erfsottware is no different. Computer programme as such vis';.not defined under the I.T. Act. However, Computer " _programme is defined in the Copyright Act as follows:
"Computer programme mans a set of instructions expressed in words, codes, schemes or in any other form, including a machine readable medium, capable of causing a 76
(iii) use the Licensed Product benefit of third parties, or A' parties to use the Licensed if h _'
(iv) modify, incorjpor_ate._i_nto orlwithfvother software, or create iaidksnivattipe-wolrlg L of any part of the 'LicensedyP'rjoduct: " it
(v) disclose V re'su__lts,_V benchmarkintj ' ~ V _' of" . l_ Liceinsed _ not obtained with to third §--..(vi) the Product to develop or product that "fl; competes with a Licensed product; or ..the 'Licensed product in, or in V *d_evelopnzent of, life critical applications or in any other if «...__application where failure of the Licensed Product or any results from the use thereof can reasonably be W expected to result in personal injury.
3. Ownership 3.1 Synopsys Ownership. Synopsys and/ or its licensors own and shall retain all rights, title and interest in and to the Licensed Product, Design Techniques and including all Intellectual Property Rights embodied therein, and Documentation,