Case Note & Summary
The suit was filed by Music Broadcast Private Limited, a company operating FM radio stations across India, against Indian Performing Right Society Limited, a copyright society registered under Section 33 of the Copyright Act, 1957, administering rights of lyricists, composers, and publishers. The dispute centered on the defendant's demand for royalty or licence fee for the plaintiff's broadcast of sound recordings on its FM stations. The plaintiff had previously entered into a licence agreement with the defendant in 2001 and made payments until disputes arose in 2003 over the withdrawal of an infancy discount. In 2005, following the government's Phase-II FM licensing policy, the plaintiff secured licences for new stations and commenced negotiations with the defendant for a separate licence, which failed. The plaintiff initially filed Suit No. 1694 of 2006 and obtained an ad-interim order, but withdrew the suit with liberty to file a fresh suit. In the present suit, the plaintiff sought a declaration that the defendant is not entitled to demand any royalty for the broadcast of sound recordings, a permanent injunction, and a refund of approximately Rs. 1.27 crores paid between 2003 and 2006, or alternatively, a declaration that it is entitled to broadcast on terms set by the Copyright Board. The plaintiff contended that under the Copyright Act, once lyrics and music are incorporated into a sound recording, the sound recording becomes a new copyrightable work owned by the producer, who holds the exclusive right under Section 14(1)(e) to communicate it to the public. The defendant's rights, the plaintiff argued, were limited to public performance of musical or literary works in a live setting, not as part of a sound recording. The defendant resisted the suit, asserting that the plaintiff had previously acknowledged its rights and was estopped, and that it was entitled to collect royalties for the underlying works. The court, deciding only the question of law, held in favour of the plaintiff, finding that the defendant had no legal entitlement to demand royalty for the broadcast of sound recordings. The declaration was granted, and the remaining issues were left to the exclusive jurisdiction of the Copyright Board. The judgment was pronounced on 25 July 2011.
Headnote
A) Copyright Law - Royalty and Licensing for Sound Recording Broadcast - Right of Copyright Society to Demand Royalty for Sound Recording Communication - Copyright Act, 1957, Sections 14(1)(e), 33 - The plaintiff, an FM radio broadcaster, sought a declaration that the defendant copyright society (representing lyricists and composers) cannot demand royalty for broadcast of sound recordings. The court held that once lyrics and music are incorporated into a sound recording, a new copyright vests in the producer under Section 14(1)(e) of the Act. Consequently, the defendant's right is restricted to public performance of works not as part of a sound recording, and the defendant is not entitled to demand royalty for the broadcast of sound recordings. (Paras 3, 9)
Issue of Consideration
Whether the defendant, a copyright society, is entitled to demand royalty/licence fee from the plaintiff for the broadcast of sound recordings on FM radio stations.
Final Decision
The court decided the question of law in favour of the plaintiff, granting the declaration that the defendant is not entitled to demand or recover royalty/licence fee for the broadcast of sound recordings. The remaining issues were left to the exclusive jurisdiction of the Copyright Board.
Law Points
- When a literary or musical work is incorporated into a sound recording
- a new copyright subsists in the sound recording under Section 14(1)(e) of the Copyright Act
- 1957
- The owner of the sound recording has the exclusive right to communicate the sound recording to the public
- A copyright society representing lyricists and composers cannot claim royalty for the broadcast of such sound recordings as their rights are limited to public performance of works not as part of a sound recording
