Abstract

Music Licensing refers to the licensed use of the copyright music. It also helps as a
compensating tool to the owners of the copyrights on musical works i.e. licensor. The
purchaser of the licence i.e. licensee has a limited right as to use the work. The report
discusses the structure of music licensing in India and what are the issues faced in India
related to music licensing. The framework for the report is an Introduction to the topic
followed by the brief role and arrangement about the Associations responsible for issuing
licences in India. The report further discusses about the licences required for organizing a
Musical event, the contents of the licensing agreement between the licensee and licensor,
the laws governing the music licensing in India, and some of the issues faced.
1. INTRODUCTION
Music is an important facet of modern life. The value of music is indisputable. Music is
everywhere around us. Recordings of music are manufactured, sold, and distributed on a
large scale. The music composers and music producers after having composed any music
album desires to earn money. Music Licensing through copyright work helps them achieve
their goals. In India, in early 19 th century, the copyright situation was not clear. There used
to be always lots of confusion over the ownership rights of any musical and artistic works
due to lack of knowledge and information amongst not only the users of the Copyright
material but also the owners themselves. Words like copyright, Performing Right, licence
fees, royalty etc. were alien to the common public. Thus an organization named The Indian
Performing Right Society Limited (IPRS) came into existence on 23rd August, 1969.
IPRS is a representative body of Owners of Music, viz. The Composers, Lyricists (or Authors)
and the Publishers of Music and is also the sole Authorized Body to issue Licences for usage
of Musical Works & Literary Music within India by any person. IPRS is the authority where you
would get your licence for playing any copyrighted music.
An organization named Phonographic Performance Ltd. (PPL) was in existence since 1941
which owned, as assignee, exclusively controls over public performance rights and radio
broadcasting rights in more than 5 lakh songs of its more than 250 members. So if one
decides to play any of its members songs one needs to reach out to PPL for licence. These
licences allowed the licensee to use the copyrighted work with payment of licence fees,
which in turn, PPL and IPRS were responsible to pay as royalty to the music owners. But
there are certain issues in dealing with the music licensing in India which are discussed
forward.
2. BRIEF BACKGROUND ABOUT LICENCES FROM PPL AND IPRS
Phonographic Performance Ltd (PPL)1
Subject to the Copyright Act of 1957, it is mandatory for all those who wish to play Prerecorded music in the form of Gramophone Records, Music cassettes or CDs or Radio or TV
or Audio-visual etc. for non-private purpose or in public places and / or commercial
establishments and / or non- commercial establishments, to take prior licence from PPL in
respect of the collections of its music labels. The licences issued were for the usage of the
actual lyrics and composed music in any public performance of music (live or recorded) on
behalf of the song writers, composers and publishers.
Consequently, any communication or performance of Indian or International music from
Sound Recordings of PPL for non-Private purposes or in Public Places or Commercial
Establishments such as Hotels, Restaurants, Cinema Halls, Discotheques etc., or noncommercial establishments such as campus without first having obtained a Licence from
PPL, constituted an Infringement of copyright under The Copyright Act of 1957. Such
violation of copyright is Cognizable & Non-bailable offence, attracting heavy Penalties.
The Indian Performing Right Society Limited (IPRS)2
The business of IPRS is to issue licences to users of music and collect Royalties from them,
for and on behalf of its Members i.e. the Authors, the Composers and the Publishers of Music

1 http://www.pplindia.org/aboutus.aspx
2 http://www.iprs.org/cms/IPRS/AboutIPRS.aspx
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and distribute this Royalty amongst them after deducting its administrative costs. IPRS is a
non-profit making Organization and is a Company Limited by Guarantee and Registered
under the Companies Act, 1956. It was also registered under Section 33 of the Copyright Act,
1957 as the Copyright Society to do business of issuing Licences for usage of Musical works
& Accompanying Literary Works. IPRS conducts its business of granting licences per Section
30, as the society is an owner of the copyrights as per assignment deeds executed with its
members who are owners and have assigned the same to it.
The Company is a strong believer in the policy of Education in the field of Copyright. IPRS
has been and continues to be a very active Company in the Indian Copyright field. IPRS was
able to forcefully get its proposals for a change in certain provisions of the Indian Law
incorporated in the 1995 amendments to the Copyright Act. It played a very vital part in the
last Amendment to the Copyright Act of India.
3. LICENCES REQUIRED FOR ORGANIZING A MUSICAL EVENT
Performing Rights Societies Licences (PRS)3
Usage of actual lyrics and composed music in any performance of music, on behalf of song
writers, composers and publishers requires obtaining PRS licence. This includes using the
radio, CDs, and streaming on the internet, music on television and also live music
performances. A public performance is considered to be anywhere outside of a domestic
environment in front of an audience, which can be one person.
In terms of the Copyright Act, the promoter of a public performance, the owner of the
premises at which the performance takes place and performers themselves all have a
responsibility to the owner of any copyright material that is used. Generally speaking, the
Society does not grant licences to performers but to the responsible proprietors of premises
at which music is publicly performed or to the promoters of musical entertainment's not
covered by such licences.
Just as a purchase of a copy of play that is in copyright does not entitle the purchaser to
perform the play in public, so also the purchaser of a copy of piece of music or of a
commercial recording does not entitle the purchaser to perform in public the work embodied
in the copy or recording. It merely entitles him to perform the work in his domestic circle,
where Performing Rights do not operate.
IPRS grants blanket Licences for a moderate annual charge which enables the holders
thereof to comply with the provisions of the Copyright Act, 1957. These Licences authorize
the public performance, broadcasting, or diffusion by wire of any of the millions of works
which the Company controls on its members behalf as well as on behalf of the members of
its affiliated societies throughout the world. In certain cases, permits are issued for the use
of the range or of specific works at one performance or at a short series of performances.
The Company's Licence is necessary for any public performance of copyright music under its
control regardless of the nature of the entertainment or the kind of premises at which the
performance takes place and irrespective of whether a charge for admission is made.
Public Performance Licence (PPL)4
Owning any CD/DVD or downloading any music from internet by paying for it gives you the
right to use the music for the domestic purpose. But in case if you want to use that soundrecordings to perform in public, a separate public performance licence has to be taken.
Obtaining a Public Performance Licence is obligatory to make use of recorded music on
behalf of the record companies and it also covers the performers rights. PPL also covers
music played through a television, the radio and playing music on the internet in public. A
public performance is considered playing recorded music anywhere outside of a domestic
environment, in front of an audience. An audience can also be one person if this is in a
public space. What constitutes public space is still a question in the minds of people.

3 http://www.iprs.org/cms/FAQs.aspx
4 http://www.pplindia.org/licctg.aspx
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A performance licence gives permission to use an artists musical creation by paying

royalties for publishing rights to songwriters, composers and/or publishers for each track.
Performance Licences are not just for concerts - for example, business establishments that
wish to play background music in their stores usually are required to obtain performance
licences for the right to do so.
If recorded music is being played in any public space through any kind of device to an
audience, your institution will need to have both the PPL and PRS licences (and a TV licence
if this applies). It does not matter if the device the music is being played on is owned by the
institution or a personal possession of a staff member or student. The licence applies to the
playing of music in public. However if staff and students listen to recorded music through
headphones in public college or university space, this will not constitute a public
performance of this music and therefore not require a PPL or PRS licence. The music must be
audible in a public space.
4. LAW GOVERNING MUSIC LICENCING
COPYRIGHT ACT, 1957 (ACT)
IPRS is registered under Section 33 of the Copyright Act, 1957 as the Copyright Society to do
business of issuing Licences for usage of Musical works & Accompanying Literary Works. The
Act covers the rights of the owner of the musical or artistic work if the work is copyrighted
and allows the owner to be entitled to safeguard against any duplication or replication of the
original work done by the owner. No third person can claim right over the copyright. Section
13 of the Act gives support to copyright of musical and artistic works. Section 16 of the Act
covers that no similar copyright shall be given to the work for which copyright has already
been issued under the Act.
Music Licensing is completely governed by the Act and one can be held liable for violation of
any guidelines towards copyright music and artistic work under the Act. The purpose of the
Act is to grant statutory right and protection to the author / owner of the work in which
copyright subsists. Section 30 of the Act empowers the owner of the Copyright work to grant
licence to various persons for the use of its work. Also in certain cases Copyright Board can
grant a Compulsory Licence. Therefore copyright licences may either voluntarily entered into
by the copyright owner or need to be imposed on him.
Under copyright law, a licence fee is payable for the public performance of music. In the
case of live concerts, this fee is generally payable to the Indian Performing Right Society or
IPRS, and in the case of recorded music, the licence is generally payable to both the IPRS
and the PPL. I use the word generally here since IPRS and PPL must both be in a position to
substantiate that the music publicly performed is within their repertoire.
5. KEY TERMS USED IN A LICENSING CONTRACT5,6
IPRS collect licence fees from the licence holder and pay them as royalty to copyright
owners. Firstly IPRS enter into a contract with the owner of the copyright music and get the
music registered with IPRS. Then IPRS would issue licence to the licensee in the form of
licensing agreement. Some of the key terms or clauses that form part of the agreements are
discussed below.
Rights Granted
The composer grants the rights to any users for the exclusive, irrevocable and perpetual
right, licence and privilege throughout certain territory to record and rerecord in any or all of
the SONGS only in synchronism or time relation with the visual materials, and to reproduce,
distribute, import and sell the said on CD-ROM or CD-I, or electronically, throughout the
specified Territory. It also gives the right to publicly perform and authorize others to perform
the Music.
Financial Arrangements (including Royalty Payments)
One of the most important elements of a licensing agreement covers the financial
arrangement. Payments from the licensee to the licensor usually take the form of

5 http://www.inc.com/encyclopedia/licensing-agreements.html
6 http://www.hypebot.com/hypebot/2014/08/what-you-need-to-know-about-music-license-agreements-before-signing.html
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guaranteed minimum payments and royalties on sales. Royalties depend on the specific
property involved and the licensee's level of experience and sophistication. Not all licensors
require guarantees, although some experts recommend that licensors get as much
compensation up front as possible. In some cases, licensors use guarantees as the basis for
renewing a licensing agreement. If the licensee meets the minimum sales figures, the
contract is renewed; otherwise, the licensor has the option of discontinuing the relationship.
Time Frame of the Licence
Another important element of a licensing agreement establishes the time frame. Many
licensors insist upon a strict market release date for products licensed to outside
manufacturers. After all, it is not in the licensor's best interest to grant a licence to a
company that never markets the product. The licensing agreement will also include
provisions about the length of the contract, renewal options, and termination conditions.
Ownership and Control of the Copyrights
Common element of licensing agreements covers which party maintains control of
copyrights. Many contracts also include a provision about territorial rights, or who manages
distribution in various parts of the country or the world. So, territorial control and the
exclusivity of the copyrights generally would vest upon the owners of the copyrights and
would not in any case be transferred to the licensee.
Transferability of the Licence
This is an important clause as there cannot be any transfer of the licensing agreement made
which would be causing loss to the owner of the Copyright as he would not earn from the
licence fees from the other party. So generally there is a non-transfer clause in the
agreement which would act as a safeguarding tool for the owners of the licence.
Representation, Warranties and Indemnification
In case of any default from the user of the Music in terms of the licensing agreement, this
clause comes to the rescue of the owner and vice versa. Also, if there is any breach on the
part of any of the parties, this clause serves as the remedial measure to some extent.
6. ISSUES
Mandatory requirement for prior licensing
The issue at hand here is that most of us in the society do not know about the requirement
of acquiring prior licences for the purpose of playing any sound track or musical work at any
public places or while playing of sound-recordings in an event or show or concert or stage or
dance-floor, etc. where performers perform on stage or a designated area. Eg- A mall which
has obtained only a "background music" licence, separately needs to obtain licence for its
restaurant, lounge, club. The songs which we buy on the CD or download by paying on
website are only for the purpose of domestic use. This also creates an issue for the owner of
the copyright music as they are deprived of the royalty and licence fees as part of their
reward / compensation on usage of the artistic and musical work.
Lack of Awareness amongst public
The most prominent cause of the violation of music laws in India is the lack of awareness
amongst people regarding the legal usage of music by acquiring adequate music licences.
Music labels have absolute authority over their songs and using them without a proper
licence at public places is a punishable offence. Phonographic Performance Ltd (PPL) has
launched a national campaign Halla Bol' to create awareness about the music licensing
laws in the country.7
Copyright infringement8
If you don't obtain clearance for your use of copyright music, you could face legal action for
copyright infringement and may become liable to pay damages and costs. Playing any
sound recording in private is not copyright infringement in sound recording. It is only when
the recording is caused to be heard in public, does it amounts to infringement. Persons who

7 http://www.radioandmusic.com/content/editorial/news/ppl-launches-halla-bol-campaign-music-copyright-awareness
8 http://nopr.niscair.res.in/bitstream/123456789/16394/1/JIPR%2018(2)%20123-132.pdf
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are responsible for broadcasting a performance and who grant licences that entitle listeners
to perform the broadcast in public are liable for infringement as a persons who have
authorized a public performance.
Certain acts of public performances do not constitute infringement of copyright like
playing music for non-fund generating or for benefit of Religious Institutions
Playing sound recording in a common enclosed hall which constitutes residence of a
bunch of students / group of person
Performance by Staff of Educational Institutions
Performance or Communication in the Course of a Religious Ceremony.
Online Piracy of Music
Music piracy9 is a real, progressing and advancing challenge. Both the volume of music
gained unlawfully without paying for it and the subsequent drop in incomes are staggering.
Online sales, while on the ascent, are not compensating for any difference. It's generally
known as "piracy" yet that is excessively kind of a term, making it impossible to
satisfactorily portray the toll that music theft tackles the colossal cast of industry players
working in the background. While downloading a song one may not feel that serious of a
wrongdoing, the collective effect of a large number of songs downloaded wrongfully and
with no remuneration to every one of the individuals who served to make that tune and
convey it to fans is devastating.
The sound recording industry confronts three sorts of piracy. 10
To start with, there is a straightforward route by which tunes from distinctive genuine
tapes/CDs (and in this manner diverse right-holders) are replicated and put in a solitary
tape/CD. These are then bundled to look not quite the same as the first items and sold in
the business sector.
Second, there is forging, when tunes are duplicated into and bundled to look as near the
original as could be allowed utilizing the same name, logos and so on. These items are
misdirecting as in customary end clients surmise that they are purchasing unique items.
The third type of music robbery is bootlegging, where unapproved recordings of
execution by craftsmen are made and hence recreated and sold in the business sector.
All these happen without the information of the entertainers, arranger or the recording
organization.
India is the world's 6th biggest pirate business market in value terms however third in
volume terms. Indian music is likewise pirated in some of foreign nations, the outstanding
among these being Pakistan and the West Asia. So also, foreign sound items are likewise
subject to piracy in Indian soil.
Foreign Copy right holder11
Most foreign recordings are copyright protected in India. International licensing agreements
often exist between PPLs member companies and the foreign producers; such recordings
are then subject to PPLs control. Indian copyright law recognizes the principle of reciprocity.
This principle is a means to encourage countries that do not offer a higher level of protection
to increase the level of protection under their respective laws and to correct the level of
imbalance between laws of respective countries. So for example, in the context of copyright,
US copyright law does not recognize a general performance right for sound recordings. If a
record is played on FM radio, in a hotel, disco, restaurant or bar in the USA, the record label
does not receive any royalty.

9 https://www.riaa.com/physicalpiracy.php?content_selector=What-is-Online-Piracy
10 http://copyright.gov.in/documents/study%20on%20copyright%20piracy%20in%20india.pdf
11

http://copyright.gov.in/documents/handbook.htmlhttp://spicyip.com/2008/11/indian-copyright-collectingsocieties.html

Copyrights of works of the nations specified in the International Copyright Order are secured
in India, as though such works are Indian works. Copyright as provided by the Indian
copyright act is legitimate just inside of the fringes of the national border. To secure
assurance to Indian works in foreign nations, India has joined International conventions on
copyright and neighboring rights
Berne Convention for the Protection of Literary and Artistic works.
Universal Copyright Convention.
Convention for Protection of Producers of Phonograms against Unauthorized Duplication of
their Phonograms.
Multilateral Convention for the Avoidance of Double Taxation of Copyright Royalties.
Trade Related Aspects of Intellectual Property Rights (TRIPS) Agreement.
7. CASES
Phonographic Performance Ltd., v. Hotel Gold Regency & Others12
It was alleged that hotel Gold Regency and its co-parties are hotels, lounges, bars and
restaurants played recordings in respect of which Phonographic had entered into
agreements with the owners of the copyrights, and that no licence had been obtained and
therefore committed an act of infringement of the owner' copyright. Phonographic
contended that by virtue of being a registered copyright society and the various agreements
with the owners, they are entitled to file the present suit seeking an injunction restraining
Hotel Regency from playing the sound recordings without obtaining annual licences for the
same. They also stated themselves to be entitled to a money decree for the sum of money
as calculated on the basis of the applicable tariff charts of Phonographic for using and/or
communicating the sound recording of the copyrighted work.
The Court opined that in such a case, the copyright society had no authority to file a suit
against such persons either for infringement or for recovery of fees or damages. The Court
differentiated the two on the basis that where the copyright society seeks to recover or
collect fees from persons to whom licences have been granted, it is doing so in terms of the
licences, but while doing so from persons to whom no licences have been granted, it would
be doing so on the basis of infringement. In this light, the Court rendered the suit not
maintainable and stated that it was open to the owners to sue for infringement and other
consequential civil remedies.
Music Broadcast Pvt. Ltd vs. Phonographic Performance Ltd. On 19 November,
200213
In this case the Board held in favour of granting compulsory licences under Section 31 (1) (b)
of the Copyright Act, 1957 to complainants FM radio providers against music providers such
as Phonographic Performance Limited (PPL). In this case, the issue in question was that
whether the FM radio industry could claim compulsory licensing on music owned by music
providers such as PPL.
This was based on the argument that the latter were being unreasonable in charging
exorbitant royalties of FM radio channel providers for music owned by the latter which in
turn was affecting public interest at large. Interestingly, the Board concluded that FM radio
broadcasters, though organized as business enterprises, thus now owe a social obligation
towards nation building, thus serving public interest.
In conclusion, in the long-run, as and how the awareness of copyrighted music and its
licensing spreads among the masses, the licensing should increase. The terms of the
contract should be able to cover the target of both the contracting parties which in turn
would lead to ease of licensing and give the user more comfort in opting for same.
Also to combat the online music piracy and increase the music sales, the music industry can
Subsidizing the purchasing price
continue attempts to track the IP or implement ISP monitoring systems
Increases their focus on high quality products.

12
http://www.mondaq.com/india/x/66684/Copyright/Copyright+Societies+Not+Liable+To+File+Copyright+Infringement+Suit

13 http://indiankanoon.org/doc/1242789/
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As such playing music in a private place is still not an infringement of Copyright and one can
enjoy the music at ease.