The arrest of the two corporate executives has firmly put the spotlight on the corporate source of film piracy. They, along with a third co-accused, have been arrested for pirating the film "What's Your Rashee?"

Shah and Nagda were responsible for overseas distribution of Bollywood films, while Rajesh Chaudhary, an Associate vice-president of UFO Movies, was responsible for digitising them before release.

In response, a shocked UTV, the producer of the film has slapped a notice on Adlabs Films and UFO Moviez, seeking Rs 50 crore each in damages.

In its notice UTV said, "Since the print has been pirated and made available in the market, the film will also lose a significant portion from its theatrical market."

UFO Moviez said it sacked the employee in question and is considering legal implications.

Kapil Agarwal, Joint MD of UFO Moviez, said, "We will now take a call if the claim is binding on us."

However, Adlabs for its part said, "We shall take all appropriate legal actions against any person or persons in the organisation found guilty of any lapse or misconduct. Piracy is eating away a substantial chunk of the legitimate revenues of the entertainment industry and Reliance ADA group stands committed to fight this evil."

Piracy has been an age-old problem in the Indian film industry. Analysts say that the industry loses around Rs 5000 crore every year to piracy.

Meanwhile, investigators are now looking at the Pakistani angle to the piracy trade. They say the prints travelled across the border and from there across the globe.