Companies are increasingly hiring law firms to help them handle the legal hurdles of using popular movie characters in advertising, as brands seek stronger associations with such figures to maintain recall and relevance in a crowded, distraction-heavy market, say legal experts.
Character merchandising is growing in popularity, as businesses recognise the commercial appeal of film characters and the need to incorporate them into marketing and promotional campaigns but are unsure about the legal implications.
Law firms say there is a steady rise in queries from clients, especially in the FMCG, telecommunications and consumer electronics sectors, about the legal aspects of character merchandising from popular films.
“They want to know about potential copyright and trademark violations. They also enquire about the necessity of obtaining explicit licences from film producers or rights holders, and the risk of litigation or reputational harm if they proceed without proper authorisation,” said Priyanka Sinha, partner at law firm A&P Partners.
Lawyers and brand merchandising experts said companies are becoming more aware of the strong commercial appeal of movie characters and the benefits involved in integrating them into their advertising and promotional activities.
In recent years, movie and web series characters such as Vikram Rathore (Jawan), Vicky (Vicky Vidya Ka Woh Wala Video), Aasmaan Singh and Parvaiz (The Ba***ds of Bollywood) have been commercially exploited. The latest is the character Jamil Jamali from Dhurandhar, used widely in brand promotions by companies such as India Post and Bharat Sanchar Nigam Ltd.
“We are aware of the widespread usage of characters from the Dhurandhar franchise. It reflects how strongly they have connected with audiences and entered the larger cultural conversation,” said a spokesperson from Jio Studios, producers of the Dhurandhar movie franchise. “While we deeply value this popularity, all associated rights remain with us. We approach such matters with due consideration,” the spokesperson for the media and content unit of Reliance Industries said.
“Character merchandising is an important issue. A film’s producer owns the exclusive rights of the film’s characters. Therefore, companies must obtain a licence to exploit movie characters commercially from producers,” said Rahul Chaudhry, managing partner of law firm Rahul Chaudhry & Partners. “If a company commercially exploits a film’s character without a licence, then the producer can legitimately contend it,” he explained.
Indian filmmakers do not fully realise the commercial potential of movie characters that have become popular and a part of public discourse, said brand merchandising experts.
“The biggest difference between the West and India is that, in India, merchandising and licensing is a part of marketing rather than a revenue stream,” said Navin Shah, joint managing director at EMC Solutions Worldwide, a company in branded entertainment. “Also, we don't make too many character-based films. In fact, merchandising and licensing in our film industry is largely an afterthought,” he added.
According to brand merchandising experts, merchandising and licensing contribute 20-25% to total film revenues in Hollywood.
In India, the share is less than 1%. At present, merchandising and licensing can contribute 10% to the total film segment revenues of Rs 20,000 crore, which can go up to 25% in the next five years, said Shah.
Character merchandising is growing in popularity, as businesses recognise the commercial appeal of film characters and the need to incorporate them into marketing and promotional campaigns but are unsure about the legal implications.
Law firms say there is a steady rise in queries from clients, especially in the FMCG, telecommunications and consumer electronics sectors, about the legal aspects of character merchandising from popular films.
“They want to know about potential copyright and trademark violations. They also enquire about the necessity of obtaining explicit licences from film producers or rights holders, and the risk of litigation or reputational harm if they proceed without proper authorisation,” said Priyanka Sinha, partner at law firm A&P Partners.
Lawyers and brand merchandising experts said companies are becoming more aware of the strong commercial appeal of movie characters and the benefits involved in integrating them into their advertising and promotional activities.
In recent years, movie and web series characters such as Vikram Rathore (Jawan), Vicky (Vicky Vidya Ka Woh Wala Video), Aasmaan Singh and Parvaiz (The Ba***ds of Bollywood) have been commercially exploited. The latest is the character Jamil Jamali from Dhurandhar, used widely in brand promotions by companies such as India Post and Bharat Sanchar Nigam Ltd.
“We are aware of the widespread usage of characters from the Dhurandhar franchise. It reflects how strongly they have connected with audiences and entered the larger cultural conversation,” said a spokesperson from Jio Studios, producers of the Dhurandhar movie franchise. “While we deeply value this popularity, all associated rights remain with us. We approach such matters with due consideration,” the spokesperson for the media and content unit of Reliance Industries said.
“Character merchandising is an important issue. A film’s producer owns the exclusive rights of the film’s characters. Therefore, companies must obtain a licence to exploit movie characters commercially from producers,” said Rahul Chaudhry, managing partner of law firm Rahul Chaudhry & Partners. “If a company commercially exploits a film’s character without a licence, then the producer can legitimately contend it,” he explained.
Indian filmmakers do not fully realise the commercial potential of movie characters that have become popular and a part of public discourse, said brand merchandising experts.
“The biggest difference between the West and India is that, in India, merchandising and licensing is a part of marketing rather than a revenue stream,” said Navin Shah, joint managing director at EMC Solutions Worldwide, a company in branded entertainment. “Also, we don't make too many character-based films. In fact, merchandising and licensing in our film industry is largely an afterthought,” he added.
According to brand merchandising experts, merchandising and licensing contribute 20-25% to total film revenues in Hollywood.
In India, the share is less than 1%. At present, merchandising and licensing can contribute 10% to the total film segment revenues of Rs 20,000 crore, which can go up to 25% in the next five years, said Shah.
