Legal Complexities in Intellectual Property and Licensing in India’s Digital Mapping Industry

Posted On - 3 January, 2025 • By - Himanshu Deora

Introduction

A controversy has erupted in India’s digital navigation space that spotlights the tensions between MapmyIndia, a leader in geospatial technology, and Ola, one of the nation’s foremost ride-hailing platforms. The dispute intensified when Rohan Verma, CEO and Executive Director of MapmyIndia, publicly criticized Ola’s announcement of developing a navigational map for India, dismissing it as a “gimmick” and questioning its credibility. Ola categorically denied these claims as “baseless” and, in turn, accused MapmyIndia of desperate attempts to remain relevant in an increasingly competitive market.

At the heart of the conflict lies a legal notice written by MapmyIndia to Ola on July 23 regarding a breach of a licence agreement signed in 2021 for the use of MapmyIndia’s APIs and SDKs. However, Ola responded and said that MapmyIndia’s criticisms arise from this fact that it is out of relevance in the current market. This case represents some of the most critical issues surrounding intellectual property, fair competition, and innovation in India’s rapidly evolving tech ecosystem.

Background

Founded in 1995, MapmyIndia is a leader in digital mapping, offering premium-quality digital maps, APIs, GPS navigation, and GIS solutions. The company has developed a comprehensive and proprietary mapping database through extensive field surveys and advanced mapping technologies. As of December 2024, MapmyIndia, officially known as C.E. Info Systems Limited, has a market capitalization of ₹89.91 billion (~$1.08 billion)[1].

Ola, launched in 2010, is India’s largest ride-hailing service and largely dependent on map technologies. The company has recently announced it will migrate from Google Maps to the proprietary Ola Maps service after the acquisition of GeoSpoc in October 2021. Ola expects cost savings of ₹100 crore a year while providing an India-centric map solution. “Technological independence is very important for us as a company,” said Bhavish Aggarwal, CEO of Ola. Ola Maps was integrated into Ola Electric’s two-wheelers, such as the S1 Pro electric scooter, in line with its overall plans to consolidate mapping technologies.

This, however, has attracted a legal battle with MapmyIndia. According to the allegations, Ola Electric has violated a license agreement entered into in 2022. The contract did not allow Ola to combine licensed MapmyIndia products with competitive technology, reverse-engineer the software, or replicate its mapping data. MapmyIndia claims that Ola Maps violated the terms of the two companies’ agreement by introducing their proprietary data into Ola Maps.

This conflict signifies the competitive intensity in the Indian digital mapping sector; with MapmyIndia pushing for the defense of intellectual property against what it perceived to be infringement by Ola Electric. Ola’s efforts to reduce the reliance on external providers, like Google Maps and Microsoft Azure, have brought it friction with existing partners.

The case of MapmyIndia v. Ola raised several legal issues that involve intellectual property rights, a breach of contract, and fair competition. Some of them are as follows:

1. Copyright Infringement: MapmyIndia accused that Ola Electric infringed the copyright law to have made Ola Maps on the proprietary mapping data MapmyIndia possessed. Since digitized maps, which incorporate skill, investment and innovation in significant proportions are now granted copyrights, so downloading them without permission infringe copyright law.

2.Breach of Licensing Agreement: According to MapmyIndia, Ola has violated the terms of its 2022 licensing agreement that allowed restricted access to MapmyIndia’s APIs and navigation solutions for Ola’s electric scooters. The agreement clearly prohibits the combination of licensed data with competing products, reverse engineering of APIs, or extracting source codes. Any breach of these terms amounts to a breach of contract.

Laws Involved:

1. Copyright Act, 1957: The Copyright Act, 1957, protects original works, including databases and digital maps, if created with skill, labour, and judgment, so the authors are protected by law. Proprietary mapping data such as that of MapmyIndia, developed through immense effort, advanced technology, and field surveys, fall into this category of works, which are classified as intellectual property. These works give the authors the rights to reproduce, distribute, and use their creations. Unauthorized reproduction, duplication, or use of these works without the owner’s consent constitutes copyright infringement. Here, MapmyIndia asserts that its mapping data has been illegally copied and integrated into Ola Maps, infringing on these exclusive rights.

2. Indian Contract Act, 1872: The Indian Contract Act, 1872 governs legally binding agreements between parties and provides remedies for breaches. It outlines consequences for non-compliance. In the case of MapmyIndia v. Ola, this law is at the center of the alleged breach of the 2022 licensing agreement. The agreement between MapmyIndia and Ola explicitly prohibited actions such as combining MapmyIndia’s licensed data with competing products, reverse engineering, or extracting source code. MapmyIndia alleged Ola had breached these terms by utilizing proprietary data to create Ola Maps, which thus involved a breach of the agreement. This law permits the option of claiming legal remedy under compensation for damages, ensuring that the agreement is enacted or obtaining injunctions against Ola.

3.Other Relevant Laws: The Information Technology Act, 2000 provided the legal protection to data and information in digital forms. It safeguards data against access, use, and extraction without authorization.

This Act becomes particularly important in reverse engineering cases, like in MapmyIndia’s complaint against Ola, wherein Ola is accused of stealing source code from the APIs. If true, it may be addressed by this very Act that aims at saving digital assets from the improper usage in the technological domain. Moreover, common law principles and trade secrets hold immense importance in India regarding the protection of proprietary information. While there is no particular legislation on trade secrets, courts value them and enforce their protection.

The legal controversy between MapmyIndia and Ola pertains to allegations of violating a 2021 license agreement regarding the usage of MapmyIndia’s APIs and SDKs for navigation[2]. The founder of MapmyIndia, Rohan Verma, has accused ANI Technologies, the parent company of Ola, of breaching the terms of this agreement. According to him, Ola had been in a longstanding relationship with MapmyIndia since 2015, and the breach that was complained of now was the misuse of MapmyIndia’s technology.

A spokesperson of the OLA categorically rejected MapmyIndia’s claims, describing them as “baseless” and “motivated[3].” He further stated that the recent actions by MapmyIndia were due to the efforts of staying afloat in the increasingly competitive market, where its offerings were far more on the minds of consumers. Ola further stated these allegations as an effort on the part of MapmyIndia to destabilize other players. According to Ola, the legal notice had been addressed, and the onus was now on MapmyIndia to prove its case, emphasizing that Ola would protect its interests using all available legal means.

The problem was further complicated by the Red Herring Prospectus of Ola Electric, in which it had claimed that Ola Maps is owned and supplied by Geospoc Pvt Ltd. Verma disputed this claim. He attacked the financial soundness and capabilities of Geospoc, which meant that the company did not have the wherewithal to create a product that was reliable for mapping. Verma also stated that Ola Electric had licensed MapmyIndia’s APIs and SDKs earlier. That really puts a question mark on the credibility and quality of Ola Maps.

Conclusion

In conclusion, the case is a reflection of the intricacies of intellectual property, licensing agreements, and competition within India’s rapidly growing digital mapping sector. MapmyIndia’s claims of copyright infringement and breach of contract also reflect the need to protect proprietary technology in an increasingly competitive market. Ola, however, denies this and asserts its right to innovate and reduce reliance on external providers. The case will bring out very fundamental questions concerning fair use boundaries, protection of trade secrets, and how licensing agreements will play in matters of business integrity. When the legal battles are heard out, this dispute is going to affect the future of India’s tech ecosystem, at least as far as how companies negotiate on licensing, intellectual property, and the need for technological independence. Ultimately, the resolution of this case will be pivotal in setting precedents for similar conflicts in the digital space.

[1] https://stockanalysis.com/quote/nse/MAPMYINDIA/market-cap/

[2] Verma, R. (2024) ‘Ola’s navigation map: MapmyIndia CEO Rohan Verma dismisses claims as announcements, gimmicks, raises quality concerns’, LiveMint. Available at: https://www.livemint.com/companies/news/olas-navigation-map-mapmyindia-ceo-rohan-verma-dismisses-claims-as-announcements-gimmicks-raises-quality-concerns-11723437097428.html (Accessed: 27 December 2024).

[3] MapmyIndia CEO calls Ola Maps a ‘gimmick’ and ‘just an announcement’. (2024) Business Today. Available at: https://www.businesstoday.in/technology/news/story/it-is-just-not-possible-mapmyindia-ceo-calls-ola-maps-a-gimmick-and-just-an-announcement-441098-2024-08-12 (Accessed: 27 December 2024).

King Stubb & Kasiva,
Advocates & Attorneys

Click Here to Get in Touch

New Delhi | Mumbai | Bangalore | Chennai | Hyderabad | Mangalore | Pune | Kochi
Tel: +91 11 41032969 | Email: info@ksandk.com