A lawsuit filed in the Delhi High Court has put two of India's most prominent listed companies on opposite sides of a copyright dispute, and the outcome could reshape how brands use music on social media.

Zee Entertainment has sued Nykaa for allegedly using its copyrighted songs in Instagram reels to promote products to millions of followers, seeking damages of 20 million rupees, approximately $210,000 (₹1.99 cr), according to a Reuters report. The lawsuit, filed on April 3 has not previously been reported. Both companies declined to comment.

What Zee alleges

At the heart of the dispute is the distinction between personal and commercial use. Zee holds a licensing agreement with Meta Platforms that permits individuals to use its music in Instagram posts, but only for non-commercial purposes. Nykaa, the lawsuit alleges, crossed that line by using several of Zee's copyrighted songs as background music in promotional reels designed to sell products.

Zee listed 12 specific Instagram reels in the over 900-page lawsuit, accompanied by screenshots, where Nykaa allegedly used the music "without securing any permissions/authorisations" from Zee.

Where things stand in court

At a brief hearing on Thursday, Nykaa's lawyer told the court that the 12 flagged links had been taken down. The case will next be heard on May 26.

Why it matters beyond Zee and Nykaa

Legal experts say the case has implications that stretch well beyond the two companies involved. Short-video formats have become one of the most effective advertising tools on platforms like Instagram, and popular Hindi film songs are routinely used as background music in promotional content.

Aditya Gupta, a partner at Ira Law, pointed to a widespread gap in how marketing teams approach music licensing. "Marketing departments often use content available on music libraries without reading the fine print of the Instagram terms," he said, adding that the decision should "provide much-needed clarity."

The case effectively tests whether the non-commercial carve-out in platform licensing agreements protects brands using music to sell products, a question that, depending on the outcome, could force a significant rethink across India's digital marketing industry.

(With inputs from Reuters)

Published on: May 6, 2026 7:32 AM IST