"From our ... Discussion, it becomes clear that the sharing of the signals has to be without any advertisements and if the advertisements are also to be included in the signals, there has to be sharing of the revenue," a bench of Justices A K Sikri and Prafulla C Pant said while dismissing the appeal of Star Sports India Private Ltd.
The private broadcaster has been seeking a direction to Prasar Bharati not to insist on live signal of international cricket matches of India without any commercial.
Referring to provisions of the Sports Broadcasting Signals (Mandatory Sharing with Prasar Bharati) Act, the apex court concurred with the findings of the High Court and said that the contents are to be "mandatorily shared" by the private broadcaster with Prasar Bharati and they have to be "without its advertisements".
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"The principle of purposive interpretation, in this context, meant that Prasar Bharati was supposed to telecast these matches for the benefit of general masses spread throughout India, who otherwise do not receive signals of private channels like the appellant or are not having financial capacity to pay for these channels.
(Reopen LGD31)
The apex court rejected the contention of the private broadcaster that logos and commercials are inserted at the end of content-holder like ICC and it cannot be asked to ensure supply of commercial-free live feed to Prasar Bharati.
"Thus, even if it is ICC which has included those advertisements/logos, the feeds have to be without those logos/advertisements inasmuch as nobody can dispute that the content rights owner are content holder, ie, ICC in the instant case has included those logos /advertisements from purely commercial angle. Thus, the arrangement between the ICC and the appellant (Star Sports), is totally inconsequential," the verdict said.
It also said that if commercials are there in the live feed, shared with Prasar Bharati, then the advertisements get wider publicity and hence, the public broadcaster should get a share in the revenue earned from those commercials.
"However, when the signals are shared with Prasar Bharati enabling it to simultaneously retransmit the same on its terrestrial networks or DTH networks, the viewership/audience gets multiplied as the reach is to much larger section of citizenry through Prasar Bharati.