Court Blocks 'Drishyam 3' OTT Deal, Siding With Amazon's Rights Claim
The Delhi High Court has granted Amazon Prime Video an interim injunction, restraining Malayalam production house Aashirwad Cinemas from creating or dealing with any third-party OTT rights for the film tentatively titled "Drishyam 3." Amazon initiated the legal action, claiming a 2020 agreement gave it an exclusive first right to negotiate for future films in the franchise. The court was later informed that both parties are engaged in settlement discussions.
Key Takeaways
- An ex-parte order restrains Aashirwad Cinemas from creating or dealing with any third-party, non-linear internet-based rights for "Drishyam 3" until the next hearing.
- Amazon's case hinges on an "Amazon Option" clause in a 2020 agreement, which it argues provides an exclusive first right to negotiate for new films in the Drishyam franchise.
- The dispute escalated when Aashirwad Cinemas unilaterally terminated the agreement during negotiations and indicated it would proceed with other offers.
- Despite the injunction, Amazon informed the court on April 20 that both parties are actively pursuing a settlement, with the next hearing set for May 15.
Why It Matters
The injunction reinforces the legal enforceability of "first look" and option clauses in multi-film agreements, allowing platforms to protect their franchise pipelines. For streamers, securing sequel rights to successful IP like the Drishyam franchise is critical for retention, and this case highlights the high stakes as local content producers gain negotiating leverage. The key signal to watch is the outcome of the settlement talks. Whether the dispute is resolved amicably or through further court action will demonstrate the shifting power balance between global platforms and regional production houses in India.
Read full article at msn.com
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