Mumbai: Music labels are increasingly initiating action against hotels, restaurants and event organisers among others for playing copyrighted music on their premises without permission, said intellectual property rights lawyers, music companies and analysts.
They have filed 197 civil suits and 172 police complaints in the past three years over copyright infringement outside the digital space, said legal firms.
“There has been at least 30% growth in civil suits filed by music labels for copyright infringement in the past three years,” said Himanshu Deora, partner and head of IP Practice at law firm King Stubb & Kasiva.
Operators of hotels, restaurants and private spaces must obtain a licence from the copyright holder for playing original music, and failure to do so is a civil and criminal offence under the Copyright Act, 1957. This requirement has often been ignored due to a lack of awareness, absence of robust government machinery to handle non-compliance and utter disregard for the law.
But music labels have now become aggressive in protecting copyright, said lawyers and industry executives.
“Copyright infringement in sound recordings remains a pressing challenge. Despite the Copyright Act, 1957, unauthorised public communication of music is still rampant,” said Deora. “Businesses such as hotels, bars, event organisers, and digital platforms must recognise that unauthorised use of music is a cognisable and non-bailable offence.”
According to the estimates shared by music labels, industry analysts and law firms, labels are losing more than Rs 2,000 crore a year from copyright infringements in the non-digital space. Labels have been able to recover as low as 3% to 10% of the royalties due to them, said industry experts.
“There is a big need for a single-window system for monitoring, selecting and administering the copyrights and royalties due to musicians and labels, especially in non-live and non-musical events,” said Shivansh Jindal, chief executive of Merchant Records, a label owned by music composers Salim and Sulaiman Merchant. “Today, the total amount of recovery of music royalty is apparently 3%,” he said.
There are two key industry bodies which monitor copyright infringements. Phonographic Performance Ltd issues licences for playing original recordings of music labels in a commercial or non-commercial set up. The Indian Performing Right Society provides licences and collects royalties on behalf of music authors, composers and music publishers.
"Every unlicensed use of music robs not only music companies—regional music firms that take immense risks in creating and acquiring it—but also lyricists, composers, singers and musicians whose art sustains our culture," said Phonographic Performance managing director and CEO GB Aayeer.
Music labels also collaborate with third-party entities to spot copyright infringements, especially in private spaces like five-star restaurants, said Vaibhav Muley, lead analyst for media and entertainment at Yes Securities. “Even though the publishing income from the non-digital side has been increasing, it is still below 10%,” said Vaibhav Muley, lead analyst for the media and entertainment sector at Yes Securities.
In recent years, labels such as T-Series, Sony Music Entertainment India, Universal Music India and Rajshri Entertainment have filed civil cases against hotels, restaurants, salons and other private corporations for playing their music without a licence.
They have filed 197 civil suits and 172 police complaints in the past three years over copyright infringement outside the digital space, said legal firms.
“There has been at least 30% growth in civil suits filed by music labels for copyright infringement in the past three years,” said Himanshu Deora, partner and head of IP Practice at law firm King Stubb & Kasiva.
Operators of hotels, restaurants and private spaces must obtain a licence from the copyright holder for playing original music, and failure to do so is a civil and criminal offence under the Copyright Act, 1957. This requirement has often been ignored due to a lack of awareness, absence of robust government machinery to handle non-compliance and utter disregard for the law.
But music labels have now become aggressive in protecting copyright, said lawyers and industry executives.
“Copyright infringement in sound recordings remains a pressing challenge. Despite the Copyright Act, 1957, unauthorised public communication of music is still rampant,” said Deora. “Businesses such as hotels, bars, event organisers, and digital platforms must recognise that unauthorised use of music is a cognisable and non-bailable offence.”
According to the estimates shared by music labels, industry analysts and law firms, labels are losing more than Rs 2,000 crore a year from copyright infringements in the non-digital space. Labels have been able to recover as low as 3% to 10% of the royalties due to them, said industry experts.
“There is a big need for a single-window system for monitoring, selecting and administering the copyrights and royalties due to musicians and labels, especially in non-live and non-musical events,” said Shivansh Jindal, chief executive of Merchant Records, a label owned by music composers Salim and Sulaiman Merchant. “Today, the total amount of recovery of music royalty is apparently 3%,” he said.
There are two key industry bodies which monitor copyright infringements. Phonographic Performance Ltd issues licences for playing original recordings of music labels in a commercial or non-commercial set up. The Indian Performing Right Society provides licences and collects royalties on behalf of music authors, composers and music publishers.
"Every unlicensed use of music robs not only music companies—regional music firms that take immense risks in creating and acquiring it—but also lyricists, composers, singers and musicians whose art sustains our culture," said Phonographic Performance managing director and CEO GB Aayeer.
Music labels also collaborate with third-party entities to spot copyright infringements, especially in private spaces like five-star restaurants, said Vaibhav Muley, lead analyst for media and entertainment at Yes Securities. “Even though the publishing income from the non-digital side has been increasing, it is still below 10%,” said Vaibhav Muley, lead analyst for the media and entertainment sector at Yes Securities.
In recent years, labels such as T-Series, Sony Music Entertainment India, Universal Music India and Rajshri Entertainment have filed civil cases against hotels, restaurants, salons and other private corporations for playing their music without a licence.
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