The Increasing Legal Risks in Digital Marketing
In today’s digital era, advertising has evolved significantly beyond traditional television commercials and print-based billboard campaigns. Companies and brands now heavily rely on influencer marketing, Instagram Reels, AI-generated content, celebrity endorsements and social media promotions to draw consumers’ attention and expand their reach to a wider audience. However, with the rapid shift towards digital marketing, the risks relating to Intellectual Property Rights (IPR) infringement have also increased significantly. The recent controversies involving Zee Entertainment vs Nykaa, Zee vs Blinkit and Dua Lipa vs Samsung illustrate how contemporary advertising practices can easily cross the boundary between creative advertisement and unlawful use of Intellectual Property (IP). These developments highlight the need to examine the existing IPR framework while formulating advertising strategies. The final adjudication of these matters may further clarify the applicable IPR principles and provide greater guidance on the legal framework to be followed in emerging advertising practices.
Zee vs Nykaa: Copyright Issues in Instagram Reels
A significant copyright dispute recently emerged after Zee Entertainment Enterprises Limited sued FSN E-Commerce Ventures Limited (Nykaa) before the Delhi High Court for the alleged unauthorised use of copyrighted songs in its Instagram Reels. Zee alleged that Nykaa used Zee-owned music in promotional Reels without obtaining requisite commercial licences and reportedly sought damages of approximately ₹20 Million. Zee contended that although Meta Platforms provides users access to music libraries on Instagram, such permissions are subject to restrictions and does not extend to commercial or promotional use. Nykaa allegedly used the songs in branded product promotions and commercial advertising campaigns, thereby violating Zee’s copyright. The dispute, pending adjudication, raises a thought-provoking legal issue regarding whether brands can freely use music available on social media platforms for commercial marketing purposes without obtaining separate licences.
Why the Case Matters
The Zee–Nykaa dispute may significantly affect digital marketing practices in India by raising important issues about the commercial use of copyrighted music on social media platforms. The broader questions which come up from the dispute is being whether access to Instagram’s music library automatically grants rights to use such copyrighted music for commercial advertisement and promotion, whether brands need separate licences for such commercial advertisement and promotions and whether social media platforms should share accountability for such infringements. It also highlights the importance of ensuring compliance of IP rights amid rapid commercialisation of creator driven culture, where Instagram Reels, and influencer generated content are widely used for advertising.
Zee vs Blinkit: Another Copyright Dispute in Digital Advertising
A very similar copyright dispute between Zee Entertainment Enterprises Limited and Blink Commerce, the operator of Blinkit, further illustrates the increasing legal risks associated with the commercial use of copyrighted content on social media platforms. Zee approached the Delhi High Court alleging that Blinkit used Zee-owned copyrighted content in promotional materials posted on Instagram without obtaining the requisite commercial licence. The dispute is significant because it follows Zee’s legal action against Nykaa and raises a similar question: whether a brand’s access to music through Instagram’s music library is sufficient to authorise its commercial use in advertising content. Zee’s position is that the copyrighted content made available to users on social media platform cannot automatically be treated as being licensed for commercial promotional activities by brands. The Blinkit proceedings therefore form a part of broader series of dispute in Zee’s efforts to protect its music catalogues and copyrighted content against unauthorised commercial exploitation and highlights the need for businesses to verify licensing rights before incorporating copyrighted music and content into Reels, promotions and other digital campaigns.
When viewed in its entirety, the Zee–Nykaa and Zee–Blinkit disputes demonstrate that the issue is not limited to one particular brand or its advertisement but reflects a broader challenge for businesses operating in the creator economy. As brands increasingly rely on use of short videos, trending music and creator driven content to engage with prospective customers, distinguishing between ordinary social media content and commercial advertising has become increasingly important from an Intellectual Property perspective. These disputes serve as a reminder that the availability of copyrighted content on a digital platform does not automatically mean that businesses have unrestricted rights to reproduce, adapt or use it for commercial purposes.
Dua Lipa vs Samsung: The Rise of Identity Rights
Another major controversy that illustrates the changing nature of IPR in advertising involves singer Dua Lipa and Samsung. Dua Lipa reportedly initiated a $15 million lawsuit against Samsung before U.S. District Court for the Central District of California alleging copyright infringement. Samsung allegedly used Dua Lipa’s picture on television packaging without her authorization thereby creating an impression that she endorsed or promoted the product. Samsung reportedly argued that the image was obtained from a third-party provider that assured Samsung that all necessary permissions had been secured.
However, the issue extends far beyond copyright law. In the digital era, a celebrity’s face, voice, reputation and online identity are considered as valuable commercial assets. Unauthorized use of such attributes can deceive consumers, create false impression of endorsement and damage personal brand value associated with the personality due to such unauthorised association with an individual’s image. The controversy therefore highlights how identity itself is increasingly becoming a protected form of intellectual property.
The dispute also reflects a broader issue in modern advertising i.e. the growing dependence on outsourced and AI-generated content. Nowadays, companies depend heavily on third-party agencies, AI-generated media, influencer collaborations and automated content systems. As content production becomes decentralized verification of ownership and licensing status becomes more difficult. Nevertheless, legal responsibility continues to remain with the advertiser or the corporation to conduct due diligence in verifying IP rights on the content before a promotional campaign is launched.
The case also raises an important legal concern in the AI era: Who is responsible when digital content is misleading, unauthorized, or improperly licensed?
This issue is becoming even more significant with the rise of deepfakes, voice cloning and virtual avatars, where a person’s likeness and identity can be commercially exploited without consent creating new challenges for protection and enforcement of IP rights and personality rights in marketing and promotion
Conclusion
Both the disputes involving Zee Entertainment, as well as the Dua Lipa vs Samsung dispute demonstrates how modern advertising strategies increasingly rely on Intellectual Property assets that brands may not necessarily own or are legally licensed. Whether it involves use of copyrighted music or content in Instagram Reels or the unauthorized use of celebrity images and identity, these cases highlight that platform access does not automatically grant legal permission on outsourced content and digital marketing must therefore operate within the applicable framework of Intellectual Property Law.
In the contemporary creator economy today, advertising is no longer only about visibility and engagement; it is also about licensing, authenticity, ownership and responsible use of Intellectual Property. As digital marketing, influencer culture and AI-driven content continue to grow, disputes of this nature are becoming increasingly common. These cases serve as an important reminder that businesses, influencers, creators and even ordinary users must be more aware of Copyright laws, Publicity and Personality rights, Trademark rights and content ownership to avoid turning creative advertisement, promotion and marketing strategies into costly legal battles.
Authors:
Mr. Prateek Dhingra
Principal Associate
Ms. Divyangana Ghosh
Associate Trainee