Case Note & Summary
The dispute arose between Phonographic Performance Ltd. (Plaintiff), a performing rights society registered under the Copyright Act, 1957, and Radio One Ltd. (Defendant), an FM radio broadcaster. The Plaintiff claimed that the Defendant was broadcasting sound recordings from its repertoire without obtaining a license or paying royalties, thereby infringing its copyright. The Plaintiff filed a suit seeking a permanent injunction and an interim injunction restraining the Defendant from broadcasting its sound recordings. The learned Single Judge granted an interim injunction on 9 May 2012, restraining the Defendant from broadcasting the Plaintiff's sound recordings without paying royalties at the rates determined by the Copyright Board. The Defendant appealed against this order, and the Plaintiff filed cross-objections seeking higher royalties. The Division Bench of the Bombay High Court considered the issues of prima facie case, balance of convenience, and irreparable injury. The Court noted that the Plaintiff had a prima facie case as it was a registered performing rights society and the Defendant was using its sound recordings without a license. The balance of convenience was in favor of the Plaintiff because the Defendant could continue broadcasting by paying royalties, while the Plaintiff would suffer irreparable harm if the injunction was not granted. The Court modified the Single Judge's order by directing the Defendant to pay royalties at the rates fixed by the Copyright Board in its interim order dated 27 February 2013, pending final adjudication. The Court also directed the Defendant to furnish security for the royalty amounts. The appeal was partly allowed, and the cross-objections were dismissed.
Headnote
A) Copyright Law - Interim Injunction - Broadcasting Rights - Sections 31, 33, 34, 35, 52(1)(j) of the Copyright Act, 1957 - The Plaintiff, a performing rights society, sought to restrain the Defendant, an FM radio broadcaster, from broadcasting sound recordings without a license and payment of royalties. The Single Judge granted an interim injunction. On appeal, the Division Bench held that the Plaintiff had a prima facie case and the balance of convenience favored the Plaintiff, but modified the order to require the Defendant to pay royalties at the rates determined by the Copyright Board pending final adjudication. (Paras 1-16) B) Copyright Law - Royalty Rates - Copyright Board - Section 31 of the Copyright Act, 1957 - The Court held that pending final determination of royalty rates by the Copyright Board, the Defendant must pay royalties at the rates fixed by the Board in its interim order, as the Board is the statutory authority to fix reasonable rates. (Paras 10-14) C) Copyright Law - Performing Rights Society - License - Section 33, 34, 35 of the Copyright Act, 1957 - The Court held that a performing rights society has the right to grant licenses and collect royalties for the broadcast of sound recordings, and the Defendant cannot unilaterally decide the royalty rates. (Paras 5-9)
Issue of Consideration
Whether the learned Single Judge was justified in granting an interim injunction restraining the Defendant from broadcasting sound recordings without paying royalties to the Plaintiff, and whether the rates of royalty fixed by the Copyright Board should be applied pending final determination.
Final Decision
Appeal partly allowed. The order of the learned Single Judge is modified to the extent that the Defendant shall pay royalties to the Plaintiff at the rates determined by the Copyright Board in its interim order dated 27 February 2013, pending final adjudication. The Defendant shall also furnish security for the royalty amounts. Cross-objections dismissed.
Law Points
- Copyright Act
- 1957
- Section 31
- Section 33
- Section 34
- Section 35
- Section 52(1)(j)
- interim injunction
- balance of convenience
- prima facie case
- irreparable injury
- royalty rates
- Copyright Board
- sound recording
- broadcasting
- performing rights society
