Amazon Wins Injunction Blocking 'Drishyam 3' OTT Sale Citing Contract Clause
The Delhi High Court has issued an interim order that prevents producer Aashirvad Cinemas from selling the OTT rights for the upcoming film "Drishyam 3." The decision supports Amazon Prime Video's claim of having first-refusal rights on future franchise titles, based on an "Amazon Option" clause in a 2020 licensing agreement. The restraining order blocks the producer from offering the film's rights to any other platform until the dispute is settled.
Key Takeaways
- The court's interim order blocks Aashirvad Cinemas from selling digital, dubbed, or remake rights for 'Drishyam 3' to any other platform.
- Amazon's case is built on an 'Amazon Option' clause in a Master Video Licence Agreement signed on October 16, 2020.
- The dispute escalated after the producer claimed in a March 31, 2026 email that Amazon’s rights had 'fallen away' and then engaged other OTT players.
- The injunction was granted under Section 9 of India's Arbitration and Conciliation Act after the court found Amazon had a prima facie case.
Why It Matters
This injunction highlights the strategic value platforms place on securing multi-film franchise rights via first-refusal clauses. For producers, it serves as a warning about the legal risks of attempting to re-shop sequel rights for more lucrative deals, a friction point noted in other recent industry cases. The final arbitration ruling is now the key event to watch, as its outcome could set a precedent for the long-term enforceability of these 'option' clauses in Indian streaming license agreements.
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