The Creative Economy & Intellectual Property Challenges in India

The creative economy in India is prospering. Creativity has now even been a business model of design studios, ad agencies, creators of digital content, and branding firms. But, behind the flashy underpinnings of design and narrative, is a legal framework that is usually not given much thought to the intellectual property (IP). All creative agencies work on IP on a day-to-day basis, which includes logos, images, slogans, web copy, video, and brand names. Nevertheless, the inability to comprehend and to guarantee these rights has resulted in a number of arguments, income loss, and even lawsuits. We will look at some of the practical lessons and case scenarios to be used in agencies to safeguard their creative work in India.

1. The “Who Owns the Logo?” Problem

Consider an example where a start-up company chooses to contract a logo of its brand and identity to an agency in Delhi. The project is terminated, the fee is given, and both parties proceed with life. One year later, the same start-up registers the logo, with its name listed, without mentioning the designer. In case the agency takes objection, the client contends:

We own the rights; we paid to have it designed.

Legal Reality

According to the Indian Copyright Act 1957, the right to copyright automatically accedes to the author except where rights are assigned by way of writing. The thing is, that unless there is a written copyright-assignment expansion in your contract, the creative agency is technically still the owner, even after delivery of the work. Nonetheless, the client can possess an implied licence to use the work well, which may undermine the claim of the agency.

Lesson

• Slowly clarify the ownership of IP:

Some words in a contract may save months of conflict in the future.

2. The “Freelancer Trap”

The creative agencies often subcontract a section of their work illustration, music, or coding to freelancers. The final file is paid for, received, and ownership is transferred to the agency. Months down the road, the freelancer notifies about a copyright violation, saying that the agency sells his design without giving due credit or a license.

Case Insight

The Delhi High Court in the case of Pine Labs Pvt. Ltd. v. Gemalto Terminals (2019) stated once again that, where work is produced by an independent contractor, ownership of the IP should be transferred expressly. This step is frequently overlooked by the agencies since they view freelancers as employees. However, according to the law, only works created in the context of employment naturally transfer the right to the employer.

Lesson

• Each freelancer or contractor is to sign a brief Work-for-Hire and IP Assignment Agreement.
• It also transfers all rights, including derivative works, to the agency after payment.

3. The “Pitch Gone Wrong” Scenario

During brand bids, agencies are commonly hand in pitch decks and sample ideas. At a later time, the client takes the project to another person, however, under the same tagline or campaign idea.

Case Reference

The concept of idea theft was recognized by the Delhi High Court in Anil Gupta and Anr. v. Kunal Dasgupta and Ors. (2002) and stated that when a novice idea is shared under confidentiality, it can be given a protection.

Lesson

• Simple Non-Disclosure Agreement (NDA).
• Include in your proposal: This idea is an intellectual property of [Agency Name] and is disclosed in confidence to evaluate only.
• Keep a record of evidence of submission.

In India, originality is honored in courts when authorship is clearly recorded and the disclosure of the same is in confidence.

4. The “Shared Portfolio” Conflict

Agencies are fond of displaying their finest work. And yet, can you publicly exhibit projects of clients without their leave?

Risk

In the absence of a self-promotion clause in the contract, then the agency has technically violated confidentiality by posting the creative property of the client on its website or social-media platforms.

Best Practice

Add a short line: “The agency can present final deliverables to submit portfolios or awards as long as confidential business information is not revealed. Clean, easy, and secure for both parties.

5. The “Similar Idea” Dispute

Creative overlap is inevitable. Two campaigns may look alike even when independently created. However, similarity in concept or execution can lead to claims of plagiarism or copyright infringement.

Example

In the Zee Telefilms Ltd. v. Sundial Communications Pvt. Ltd. (2003) case, both sides claimed rights over a TV show concept. The court held that only the expression of an idea, not the idea itself, is copyrightable.

Lesson

Agencies should maintain version records, drafts, and internal communications showing their independent creation process. Documentation is the best defence in creative IP disputes.

6. The “Music and Stock Image” Trap

Many agencies use stock images, fonts, or background music for quick delivery. But each asset comes with its own licence terms. Using a personal-licence asset for a commercial project — or failing to credit the creator as required — can amount to copyright infringement.

How to Stay Safe

• Always check the licence type (personal, commercial, editorial).
• Retain proof of purchase or licence ID.
• For high-visibility campaigns, prefer royalty-free or custom-created content.

The Copyright Act imposes strict liability — even unintentional misuse can lead to claims.

7. The “Work-for-Hire” Misconception

Agencies often assume that once a client pays, ownership automatically transfers. But in India, “work-for-hire” applies strictly to employer-employee relationships — not independent agencies. To legally transfer rights, the client must execute a copyright-assignment agreement (Section 19, Copyright Act). Without it, ownership remains with the creator.

Tip

For recurring clients, create a Master Services Agreement (MSA) with IP ownership and confidentiality clauses upfront.

8. The “Trademark Oversight”

Creative agencies that design brand names or logos rarely check trademark databases. As a result, they may deliver branding that infringes an existing mark, exposing both the client and the agency to legal action.

Example

In Satyam Infoway Ltd. v. Sifynet Solutions Pvt. Ltd. (2004), the Supreme Court held that domain names can be protected as trademarks. Had the branding agency checked the IP database, they could have avoided a costly rebrand.

Practical Step

• Conduct a trademark availability search on ipindia.gov.in.
• Mention in your deliverable note: “Client is responsible for final trademark registration.”

This small disclaimer can save an agency from shared liability.

9. Case Study: The Delhi Design Firm Dispute

A Delhi-based creative studio designed packaging and visual assets for a beverage start-up. The contract had no written IP clause. Months later, the client sold partial rights of its brand to an investor — including packaging designs. When the studio sought credit, the client claimed complete ownership. The Delhi High Court observed that in the absence of an assignment agreement, copyright vests with the designer, but also noted that the client could continue using the design as part of its business operations. The result? Neither side truly won. The agency couldn’t stop usage, and the client couldn’t claim full ownership.

Lesson

In creative industries, ownership without control is meaningless. Agencies should define transfer terms clearly — “exclusive”, “non-exclusive”, or “perpetual licence” — to avoid ambiguity.

10. The Startup Perspective

Clients aren’t villains — most disputes arise from misunderstanding. Start-ups, under budget and time pressure, assume creative agencies automatically surrender rights upon delivery. Educating clients about IP ownership early builds trust and avoids conflict. A transparent conversation about licensing, usage, and credits can prevent years of legal confusion.

Practical Checklist for Creative Agencies

• Written Agreement: Includes copyright ownership and usage rights.
• Freelancer Contracts: Contain IP assignment and confidentiality clauses.
• NDA for Pitches: Protects creative concepts shared before project award.
• Licence Proof: Maintained for every stock image, font, or sound used.
• Trademark Search: Conducted before finalising names or logos.
• Portfolio Clause: Allows self-promotion with client consent.
• Version History: Stored for proof of independent creation.
• Payment Triggers Ownership: Transfer rights only after full payment.

Following these steps can turn potential disputes into enforceable protection.

Conclusion

The creative industry in India thrives on ideas, but ideas alone aren’t enough. Without legal clarity, the same creativity that wins awards can also invite lawsuits. Agencies must evolve from “deliverable-driven” to “rights-aware.” Understanding ownership, licensing, and protection doesn’t slow creativity — it safeguards it. For agencies that frequently handle client IP or deal with international collaborations, having a lawyer review standard contracts once can prevent endless trouble later. And if you’re based in Delhi or Gurgaon, you can even visit Corrida Legal’s office to discuss your creative contracts in person. You can learn more about their work at www.corridalegal.com. (Mentioned purely for reader reference — not as a promotion.)