Zee Entertainment Enterprises Limited has filed a commercial suit against JioStar India Private Limited before the Hon'ble Delhi High Court, alleging infringement of its music copyrights. The litigation pertains to JioStar's alleged unauthorized use of the company's copyrighted sound recordings following the expiry of the license agreement between the two parties. The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.

Nature of the Dispute

The commercial suit was filed by Zee Entertainment against JioStar India for the latter's continued use of the company's copyrighted sound recordings across JioStar's digital platforms and satellite channels, after the license agreement between JioStar and the company — including its predecessors — had expired. The company contends that such use constitutes unauthorized exploitation of its intellectual property rights.

The key details of the litigation, as disclosed under Regulation 30, are summarized below:

Financial Claims and Implications

Zee Entertainment has claimed damages amounting to Rs. 28,75,00,000/- (approx.) against the infringing instances identified before the filing of the suit. The company has noted that the quantum of damages may increase, subject to any additional infringing instances that may be identified during the adjudication of the suit. The company is expected to receive damages contingent on the outcome of the proceedings.

Regulatory Disclosure

The disclosure was made pursuant to Regulation 30 of the SEBI Listing Regulations, read with SEBI Circular HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The intimation was submitted to both BSE Limited and the National Stock Exchange of India Limited by Ashish Agarwal, Company Secretary (FCS6669), on behalf of Zee Entertainment Enterprises Limited.

Zee Entertainment has announced a strategic investment decision, with its board of directors approving an investment of up to ₹116 crore in Phantom Digital Effects Limited through Compulsorily Convertible Debentures (CCDs) on a preferential allotment basis. The board meeting was held on April 17, 2026, from 3:00 p.m. to 4:30 p.m., marking a significant milestone in the company's expansion strategy within the Animation, Visual Effects, Gaming and Comics (AVGC) segment.

Investment Details

The investment will be made in one or more tranches through cash consideration. The following table summarizes the key investment parameters:

Target Company Profile

Phantom Digital Effects Limited is engaged in post-production activities, including visual effects (VFX) services, animation, digital intermediate, interactives, and allied creative services for the media and entertainment industry. The company was incorporated on February 2, 2016, and has a global presence across India, the United States, Canada, the UK, France, Ireland, Spain, and China. Its paid-up equity share capital stands at ₹15,92,28,000 divided into 1,59,22,800 equity shares of ₹10 each.

Financial Performance

Phantom has demonstrated consistent growth over the past three fiscal years:

Strategic Rationale

The investment represents a strategic partnership rather than merely a financial transaction. The acquisition does not fall under related party transactions, and the promoter, promoter group, or group companies have no interest in Phantom. The partnership aims to leverage Zee Entertainment's content vision, intellectual property ownership, and distribution capabilities with Phantom's robust execution engine, proprietary workflows, and AI-integrated production capabilities.

Strategic Implications

This investment aligns with the broader industry trend of media companies investing in advanced digital technologies and post-production capabilities. Phantom's brand portfolio under Phantom Media Group (PMG) includes Milk Visual Effects, Tippett Studio, PhantomFX, Lola Post, and Spectre Post. Tippett Studio has won two Academy Awards for 'Jurassic Park' and 'Star Wars: Episode VI – Return of the Jedi', while Milk Visual Effects has won an Oscar and BAFTA for 'Ex Machina'.

The partnership is non-exclusive and collaborative in nature, enabling PhantomFX to maintain management continuity and serve its global client base while expanding its capabilities. The investment is subject to the approval of PhantomFX's shareholders, and no governmental or regulatory approvals are required for the transaction.

Source: None/Company/INE256A01028/412b583f-c5d3-45f8-a949-12be99333ba6.pdf