Delhi High Court Halts Third-Party OTT Rights for 'Drishyam 3' Amid Amazon Prime Dispute

NEW DELHI – The Delhi High Court has passed an interim order restraining Aashirwad Cinemas from entering into any third-party agreements regarding the over-the-top (OTT) rights for the highly anticipated film, Drishyam 3. The decision comes after Amazon Seller Services Private Limited (Amazon Prime Video) moved the court alleging a breach of contract by the production house.

The Licensing Conflict
The dispute centers on a Master Video Licence Agreement signed in 2020. According to Amazon’s plea, the contract included an "Amazon Option" clause, which purportedly granted the streaming giant the exclusive first right to negotiate for all future installments in the Drishyam franchise.

Amazon approached the court under Section 9 of the Arbitration and Conciliation Act, seeking interim protection. They argued that while they were in active negotiations for the third installment, the production house unilaterally terminated the agreement to explore offers from competing platforms.

Judicial Intervention
Justice Harish Vaidyanathan Shankar, presiding over the matter, issued an ex-parte order to protect Amazon’s commercial interests. The court’s directive prevents the producers from creating or dealing with any third-party rights concerning:

• The original Malayalam version of Drishyam 3.
• Any dubbed versions.
• The proposed Hindi remake.

Potential Settlement
During the most recent hearing on April 20, senior counsel representing Amazon informed the court that both parties are currently engaged in discussions to resolve the matter outside of litigation. The court was told that a mutual settlement might be reached within the next two weeks.

Impact on Release
While Drishyam 3 is tentatively scheduled for a May 2026 release, this legal deadlock initially threatened to delay its digital debut. However, the move toward a settlement suggests a potential resolution before the film hits theaters.

The High Court has extended the interim injunction and scheduled the next hearing for May 15, 2026, to monitor the progress of the settlement talks.

Discription: The Delhi High Court has issued an interim injunction restraining Aashirwad Cinemas from granting third-party OTT rights for the upcoming film Drishyam 3. The legal intervention follows a petition by Amazon Prime Video under Section 9 of the Arbitration and Conciliation Act, alleging a breach of a 2020 licensing agreement. Amazon claims an exclusive "first right" to negotiate for all future franchise titles, a clause purportedly ignored when the producers sought alternative deals. Justice Harish Vaidyanathan Shankar’s order currently bars any third-party contracts for the original Malayalam version, dubbed editions, and the Hindi remake. While the injunction remains in effect, both parties have indicated they are pursuing a mutual settlement, with the court scheduled to review the progress on May 15, 2026.