Gaming Report: India’s New Criminal Law Targets Illegal Betting; Viacom18’s Action Against Fairplay; Winzo Games’ Trademark Victory in Delhi HC

The gaming and digital entertainment sector is currently navigating through a period of notable legal shifts. These changes, crucial for adapting to the challenges of the digital era, include safeguarding intellectual property, regulating online betting, and enforcing broadcasting rights. This report focuses on three significant legal developments that have been at the forefront of recent news, illustrating the complexities and the growing need for legal awareness in this rapidly evolving industry.

Firstly, the Indian government has taken a significant step in addressing the nuances of digital age crime with the introduction of the Bharatiya Nyaya (Second) Sanhita, 2023. This reformative legal framework broadens the definition of petty organized crime to encompass unauthorized betting and gambling, among other activities. This amendment to the longstanding Indian Penal Code of 1860 is a pivotal move towards updating the country’s criminal laws, aligning them with the demands of today’s society and emerging digital criminal activities.

Secondly, in a move highlighting the ongoing struggle for content protection, Viacom18 has launched a legal offensive against Fairplay, an online betting platform. This action stems from Fairplay’s illegal broadcasting of IPL 2023 matches and its promotion of unauthorized betting services. Viacom18’s lawsuit is representative of the broader challenges faced by content creators and broadcasters in this digital era, showcasing a trend towards vigorous defense of intellectual property and rights against unauthorized exploitation.

Lastly, the gaming industry witnessed a notable legal victory as Winzo Games, an Indian mobile gaming company, obtained a restraining order from the Delhi High Court against US-based Bajaar LLC. This order bars Bajaar LLC from using the “Winzo” or “Winzo Games” trademarks in India, effectively protecting the Indian company’s brand. This case serves as a prominent example of the importance of trademark protection in the gaming sector and demonstrates the legal avenues available to companies for defending their intellectual property against infringement in a highly competitive market.

India Updates Criminal Law: Petty Organized Crime, Including Unauthorized Betting and Gambling, Now Punishable Under Bharatiya Nyaya Sanhita, 2023

The Rajya Sabha, India’s upper house of Parliament, has recently given its nod to the Bharatiya Nyaya (Second) Sanhita, 2023. This landmark legislation represents a significant overhaul of the country’s criminal law system, originally established under the Indian Penal Code of 1860. Having already passed through the Lok Sabha, the lower house, this update seeks to bring India’s legal framework in line with the evolving societal dynamics. It introduces new categories of crimes, updates punishments, and removes archaic offenses, reflecting the contemporary needs of society.

One of the key developments in this new code is the introduction of the concept of ‘petty organized crime,’ a term not previously addressed in the Indian Penal Code. This new category encompasses crimes committed by individuals or groups involved in various illegal activities, including theft, fraud, unauthorized ticket sales, and notably, unauthorized betting and gambling. Acts of this nature, when perpetrated by members of an organized group, now fall under ‘petty organized crime,’ carrying penalties ranging from one to seven years of imprisonment, along with possible fines.

However, the Sanhita stops short of explicitly defining what constitutes ‘gambling’ and ‘betting.’ This ambiguity means that the interpretation of these terms could be influenced by state-specific gambling laws, potentially leading to varied applications across states. This aspect is particularly intriguing in the context of online or cyber gambling, especially when conducted in an organized group setting. Given that criminal law is a concurrent subject in India’s constitution, where federal law generally takes precedence over state law in case of conflicts, this could result in complex legal scenarios.

Another provision of note in the Sanhita is the penalization of operating unauthorized lottery offices, which is now aligned with Section 294A of the IPC. This offense can attract a punishment of up to six months in prison or a fine.

Interestingly, the initial draft of the Bharatiya Nyaya Sanhita, tabled by Union Home Minister Amit Shah in August 2023, did not encompass such an extensive definition of petty organized crime and omitted any mention of unauthorized betting and gambling. These additions were the result of a parliamentary committee review.

With both houses of Parliament approving the Sanhita, it now awaits the President’s assent to become law. However, its implementation won’t be immediate. The central government is set to declare the effective dates for different provisions through a gazette notification, potentially rolling out the enforcement in stages.

Viacom18 Takes Legal Action Against Fairplay for Unauthorized IPL Broadcast and Betting Promotions

Viacom18 has launched a significant legal offensive against the online betting platform Fairplay, accusing it of unauthorized broadcasting of IPL 2023 matches and engaging in illegal betting promotions. The media conglomerate is seeking damages of over ₹100 Crores, citing substantial financial losses and reputational damage caused by Fairplay’s actions.

Anil Lale, Viacom18’s General Counsel, has stressed the importance of prompt and sustained legal action in such infringement cases. “Immediate action is key in these scenarios to limit the fallout,” he remarked. Lale underscored Viacom18’s dedication to fighting piracy and safeguarding its intellectual property rights through legal means.

Fairplay, during the IPL season, took to various media platforms to aggressively offer free live streaming of the matches, alongside its unauthorized betting services. This was in direct violation of Viacom18’s exclusive digital broadcasting rights for the IPL, secured for a five-year period from the Board of Control for Cricket in India (BCCI).

In 2022, the Madras High Court had issued a comprehensive order, barring over 4,500 websites and ISPs from telecasting IPL matches. In light of Fairplay’s recent promotional activities, Viacom18 sought and was granted a specific injunction against Fairplay on April 19, 2023, by the Madras High Court.

Subsequent to securing the injunction, Viacom18 proceeded to file a lawsuit upon discovering that Fairplay had indeed streamed IPL content. Moreover, the corporation filed a criminal complaint with the Maharashtra Cyber Digital Crime Unit (MCDCU) against key figures of Fairplay, including Gulam Abbas, Penny, and Joe.

The Cyber Crime Unit has since apprehended Abbas, who is currently detained under police custody pending further court proceedings. The investigation has expanded to encompass various celebrities who endorsed Fairplay’s illicit betting services, spotlighting the extensive network involved in these unauthorized activities.

Delhi High Court Issues Injunction Favoring Winzo Games in Trademark Dispute

The Delhi High Court has recently granted a significant legal victory to Winzo Games, an Indian mobile gaming company, by issuing a restraining order against the US-based Bajaar LLC. The order explicitly targets Bajaar LLC’s “Winzos!” app, available on both the Apple and Google App Stores. The court’s injunction effectively bars Bajaar LLC from using the “Winzo” or “Winzo Games” trademarks within India, marking a substantial setback for Bajaar LLC’s operations and protecting the established brand of the Indian gaming platform.

Originating from a trademark infringement lawsuit filed by Winzo Games, the dispute centered around the claim that Bajaar LLC’s app infringed upon Winzo Games’ trademark rights. The Indian company argued that the presence of Bajaar LLC’s app in major app stores within India not only infringed on its trademark but also risked confusing consumers.

Presided over by Justice Prathiba M Singh, the Delhi High Court upheld Winzo Games’ contention. The court identified a risk of “misuse” associated with Bajaar LLC’s domain name “www.winzos.com,” given Winzo Games’ significant presence in the Indian gaming market. Despite being a US-based entity, the court also noted that Bajaar LLC was targeting Indian consumers.

Justice Singh’s ruling encompasses several directives aimed at Bajaar LLC. It includes ordering the deactivation of the “www.winzos.com” domain on the Google Chrome Webstore and transferring its ownership to Winzo Games. This transfer cements Winzo Games’ rights over the domain, as highlighted in a report by Live Law.

Furthermore, the court addressed Google’s representation about removing the infringing application from the Apple Store and Google Play Store, emphasizing the need to prevent any further availability or reinstallation of the infringing app on these platforms.

This intervention by the Delhi High Court safeguards Winzo Games’ trademark rights and sets a precedent against potential trademark violations, especially in cases where foreign entities target the Indian market.