In India, use of music in public places such as hotels, bars, gyms, malls, concerts, events, etc is very prominent to set the mood or attract the customers. Since, music falls under the intellectual property, use of music at such public places has been regulated by Copyright Act,1957 where it is mandatory to obtain a Public Performance License which grants the creators exclusive rights over their work. Deriving licenses and rights from every creator is very cumbersome process, therefore, all the licenses are to be obtained from the authority established by the Government that is Phonographic Performance Limited (PPL) India. License must be obtained irrespective of establishment; commercial or non-commercial.
The Public Performance License allows organisations and other establishments to broadcast pre-recorded music on various platforms including television, radio, colleges, etc.The license is mandated even to play background music in events like concerts, dance floor, or brand promotions or other similar activities.
Governing Clauses
Establishment and registration of these societies have been acknowledged under section 33 of the Act. It provides that there should be minimum of seven members to form and society and only one society cand o business in the same class of work.
The terms “Musical Work” and “Sound Recording” are stated under the Act for better understanding. “Musical Work” refers to a composition of music, including graphical notation, but excludes any accompanying lyrics or actions and whereas“Sound Recording” is defined as a recording of sounds, regardless of the medium used to produce or reproduce these sounds.
Recent Ruling
In a recent order passed by the Bombay High Court in the case of Novex Communications Private Limited v. The Phoenix Mills Limited and Others, the court granted ad-interim injunction in favour of Novex Communications Private Limited in a quia timet copyright infringement action.A commercial IP suit was filed against the defendants claiming that the defendants permitted public performance of sound recordings owned by Novex without obtaining the requisite licenses. The defendants contended that they complied with IPR laws and argued that the events were conducted by third parties so the responsibility for licenses lies with those organizers, not the premises owner.
Public Performance isn’t just the DJ’s problem is the statement which is legally sound and was also affirmed by the order passed by the court. The Hon’ble court clearly stated that the liability for copyright infringement does not rest solely with the DJ or the third party. According to the provision of the Act, any person who permits their premises to be used for profit for an infringing public performance is deemed to have infringed copyright even if the music is played or event is organized by the third party.
Stating this, court rejected the contentions made by the defence that only third-party organizers were responsible for obtaining license. As the events were held at the premises of the defendant’s and generated a commercial benefit, the premises owner cannot escape liability.
The defence also places reliance on the case of Phonographic Performance Ltd. V. Avion Hospitality Pvt. Ltd which was denied noting that Section 51(a)(ii) was not examined and thus it could not override the clear statutory mandate.
By granting ad interim injunction in the favour of the plaintiff, reaffirmed the principle that compliance of copyright is a shared responsibility and not entirely of the organizer or third-party. Though the third-party can be held as a direct infringer, but the venue owners are equally accountable as per Section 51(a)(ii) of the Act.
Importance for license
Legal Adherence
A public performance license makes sure that you are legally adhering with the copyright regulations. Non-compliance can result in emergence of lawsuits or fines for copyright infringement.
Appropriate Renumeration
The copyright owners of the music get compensation from the fees paid by licensees which helps creators get fair renumeration of their work.
Avoiding Conflicts
Having a necessary license helps in preventing any clashes between the user and the creator over the copyrighted material.
Conclusion
Intellectual property rights are very crucial assets of the creator. Thus, safeguarding and appreciating it is the responsibility of its user. Copyright Societies such as Novex, PPL are a way through which the original owner of the workis provided with fair compensation, and it also protects the rights of these creators. Also, the provision of the Act mandates the registration of these societies assuring transparency and smooth functioning. Every commercial or non-commercial establishment needs to obtain license from these societies, failure to which will result in repercussions. It’s the responsibility of the event organizers as well as the premises owner to ensure that all the requisites are complied with. In cases where the events are held by a third party, it is also the duty of the owner of venue to ensure that license is obtained, failing to which, the venue owner will also be liable as per section 51(a)(ii) of the Copyright Act, 1957.