Broadcast Rights for ICC Cricket World Cup 2011

In Independent Music Group SMC (Pvt) Ltd. and another vs. Federation of Pakistan and others (2011 SCP 4), the Supreme Court of Pakistan addressed the suspension of broadcast rights granted to the petitioners for airing the ICC Cricket World Cup 2011. The Court found that the Pakistan Electronic Media Regulatory Authority (PEMRA) unlawfully withdrew a previous authorization, thereby infringing upon the petitioners' rights.

Background:

The case arose when Independent Music Group SMC (Pvt) Ltd., the first petitioner, secured exclusive rights to broadcast ICC cricket events, including the ICC Cricket World Cup 2011, within Pakistan, through a licensing agreement with ESPN (Mauritius) Limited. The rights allowed them to air the event on Geo Super, a channel operated by the second petitioner, Geo Super.

On December 22, 2010, PEMRA's Sindh Regional Office issued a circular to all cable operators and MMDS distributors in Pakistan, mandating them to broadcast the World Cup exclusively through Geo Super. However, on January 10, 2011, PEMRA issued a letter withdrawing this directive without notifying the petitioners. The petitioners approached the Supreme Court under Article 184(3) of the Constitution, arguing that PEMRA's withdrawal was arbitrary, violated their fundamental rights, and caused significant financial loss.

Key Issues:

Legality of PEMRA’s Withdrawal of Broadcast Authorization: Whether PEMRA had the authority to withdraw the broadcast authorization granted to the petitioners without prior notice or justification.

Rights of Petitioners to Broadcast ICC Cricket Events: Whether the petitioners were legally entitled to broadcast the ICC Cricket World Cup 2011 based on their licensing agreement with ESPN (Mauritius) Limited.

Compliance with Regulatory Procedures: Whether PEMRA's actions complied with the regulatory and procedural requirements under Pakistani law, particularly in relation to media rights and the operations of cable operators.

Court's Analysis:

Authority and Justification for Withdrawal: The Supreme Court found that PEMRA did not have lawful authority to withdraw the December 22, 2010 authorization without notice to the petitioners, especially since the petitioners had already incurred liabilities and made preparations for the event’s broadcast. The Court highlighted that the arbitrary withdrawal without due process violated the principles of natural justice and fairness.

Rights to Broadcast: The Court acknowledged that the petitioners had secured the necessary rights to broadcast the ICC Cricket World Cup 2011 from ESPN (Mauritius) Limited and were entitled to air the event through Geo Super. It noted that this entitlement could not be unilaterally revoked by PEMRA without proper grounds and due process.

Regulatory Compliance: The judgment underscored the importance of adhering to regulatory procedures and respecting contractual rights. The Court criticized PEMRA’s conduct as inconsistent with its regulatory mandate under the PEMRA Ordinance, 2002, and highlighted the need for transparent and fair regulation of media operations in Pakistan.

Court's Conclusion: The Supreme Court suspended PEMRA's withdrawal letter dated January 10, 2011, and restored the initial authorization issued on December 22, 2010. The Court directed PEMRA to implement the restored authorization in letter and spirit, allowing the petitioners to broadcast the ICC Cricket World Cup 2011 as initially planned.

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