By Aditya Kalra

NEW DELHI, May 6 (Reuters) - India's Zee Entertainment has sued the Reliance-Disney joint venture, the country's biggest entertainment company, alleging it used Zee's copyrighted music after licence agreements expired, court documents show.

Zee is seeking $3 million in damages, alleging unauthorised use and exploitation of works from its music division on the Reliance-Disney streaming platform and some of its TV channels, according to previously unreported court papers seen by Reuters.

The lawsuit, filed in New Delhi and reported by Reuters for the first time, marks the latest legal clash between Zee and the group formed from Reliance and Disney's ( DIS ) $8.5 billion merger in 2024. The dispute underscores rising tensions over content rights as India's streaming and broadcast market consolidates.

Zee and JioStar, the name of the Reliance-Disney venture led by Indian billionaire Mukesh Ambani's Reliance, declined to comment.

Zee and Reliance are also locked in arbitration in London, where Reliance is seeking $1 billion million in damages from Zee for quitting a cricket licensing deal in 2024. Zee denies any wrongdoing and is contesting the demand.

In its 1,800-page lawsuit filed on April 14, Zee alleges that Reliance-Disney used its music at least 50 times after certain licensing agreements expired in 2024 and 2025 and were not renewed due to disagreements over commercial terms.

"The illegal exploitation thereof amounted to copyright infringement," Zee said in the filing, asking the court to stop any ongoing infringements of its music works.

JioStar owns a library of thousands of shows and broadcast rights for top sporting events across its TV channels and its streaming app JioHotstar, India's biggest with about 500 million monthly users.

Zee, one of India's oldest media groups, also has several TV channels and a streaming app, and says it owns a catalogue of more than 19,450 songs in 17 languages.

RELIANCE REJECTED DAMAGES DEMAND

The case was briefly heard on Tuesday, when the judge asked JioStar to ensure there is no ongoing infringement of Zee's works on its platforms while the matter is heard, and to comply within 15 days, according to a source with direct knowledge.

The next hearing is scheduled for July 23.

The lawsuit comes amid Zee's broader push against what it says is abuse of its music catalogue. Reuters reported on Tuesday that Zee has sued fashion-to-beauty retailer Nykaa, alleging it used Zee's copyrighted songs in Instagram reels to promote products, and is seeking $210,000 in damages.

In the case against JioStar, Zee says its music was infringed across music and dance shows that appeared on TV and the streaming platform.

Court papers show Zee and JioStar have held discussions in recent months and exchanged several letters and legal notices over the disputed use of music.

In December, JioStar told Zee it had "taken extensive steps to remove any infringing content across its portfolio", including legacy programming.

However, it said residual and passive archival hosting did not amount to infringement or unlawful communication, a position Zee disputes, the documents show.

JioStar "categorically rejects" the "coercive demands" for damages, it said in a letter dated March 16, adding that it "remains open to an amicable and commercially sensible solution".