Case Note & Summary
The case involves two appeals by Wynk Ltd and Bharti Airtel Ltd (defendants) against an order of the Bombay High Court (SJ Kathawalla J) dated 23rd April 2019, which granted an interim injunction restraining the appellants from exploiting Tips Industries Ltd's copyright in audio files through their streaming service. The dispute centered on whether the statutory license under Section 31D of the Copyright Act, 1957, which permits radio broadcasting of sound recordings upon payment of royalties, extends to internet streaming services. The appellants argued that their service, Wynk Music, was a 'radio' within the meaning of Section 31D and thus entitled to a statutory license. The respondent, Tips Industries Ltd, contended that Section 31D applies only to traditional radio broadcasting and not to on-demand streaming services. The court analyzed the language of Section 31D, noting that it specifically refers to 'radio' and 'broadcasting', and that the legislative history indicates an intent to limit the provision to radio broadcasting. The court also considered the broader scheme of the Copyright Act, including provisions for compulsory licenses and the rights of copyright owners. The court held that the statutory license under Section 31D does not extend to internet streaming services, as such an interpretation would undermine the rights of copyright owners and was not intended by Parliament. The court upheld the injunction granted by the Single Judge, finding that the appellants' use of Tips' copyrighted works without a license constituted infringement. The appeals were dismissed.
Headnote
A) Copyright Law - Statutory License - Section 31D of Copyright Act, 1957 - Interpretation - The court considered whether the statutory license for radio broadcasting under Section 31D applies to internet streaming services. Held that Section 31D is limited to radio broadcasting and does not cover internet streaming, as the provision uses the term 'radio' and the legislative intent was to address radio broadcasting only (Paras 2-3). B) Copyright Law - Injunction - Interlocutory Order - The court held that the impugned order, though interlocutory, finally settled a question of law and thus appellate interference principles from Wander Ltd v Antox India Pvt Ltd were not strictly applicable (Para 2).
Issue of Consideration
Whether the statutory license under Section 31D of the Copyright Act, 1957 for radio broadcasting extends to internet streaming services
Final Decision
Both appeals dismissed; the injunction granted by the Single Judge is upheld
Law Points
- Statutory license under Section 31D of Copyright Act
- 1957 is limited to radio broadcasting and does not cover internet streaming
- Copyright Act provisions must be interpreted strictly
- Injunction can be granted at interlocutory stage if legal question is finally settled
