Music Labels Crack Down on Copyright Infringement
Music Labels Crack Down on Copyright Infringement
The Indian music industry is intensifying its fight against copyright infringement, particularly in non-digital spaces. Hotels, restaurants, event organizers, and other businesses are increasingly facing legal action for playing copyrighted music without licenses, according to intellectual property lawyers, music companies, and industry analysts.
Significant Losses and Legal Action
The scale of the problem is substantial. Music labels estimate annual losses exceeding ₹2,000 crore (approximately $240 million USD) due to unauthorized music use in non-digital settings. This figure is in addition to losses in the digital space, estimated to be between ₹8,000 crore and ₹10,000 crore. To combat this, legal firms report a surge in legal action. Over the past three years, 197 civil suits and 172 police complaints have been filed against businesses for copyright infringement. Himanshu Deora, partner and head of IP Practice at King Stubb & Kasiva, notes a 30% increase in civil suits related to music copyright infringement in the last three years alone.
The Legal Landscape and Enforcement Challenges
Under the Copyright Act of 1957, businesses must secure licenses from copyright holders to play copyrighted music. Failure to do so constitutes a civil and criminal offense. However, enforcement has been hampered by several factors: a lack of awareness among businesses, insufficient government oversight, and a general disregard for copyright laws. This has fueled the aggressive approach by music labels in recent years.
Increased Enforcement and Industry Collaboration
Music labels are actively pursuing legal remedies, filing lawsuits against various establishments, including hotels, restaurants, salons, and event spaces. Prominent labels like T-Series, Sony Music Entertainment India, Universal Music India, and Rajshri Entertainment are leading this charge. The industry’s recovery rate remains low, with experts estimating that labels recover only 3% to 10% of the owed royalties.
The Role of Industry Bodies
Two key organizations play a crucial role in managing music copyrights and royalties. Phonographic Performance Ltd. (PPL) issues licenses for playing copyrighted music recordings, while the Indian Performing Right Society (IPRS) handles licenses and royalty collection for music authors, composers, and publishers. GB Aayeer, managing director and CEO of PPL, emphasizes that unlicensed music use harms not only large music companies but also the individual artists and creators whose livelihoods depend on fair compensation.
Challenges and Future Outlook
Shivansh Jindal, CEO of Merchant Records, highlights the need for a streamlined system to manage copyrights and royalties, particularly in non-live and non-musical events. The current system’s inefficiencies contribute to the low royalty recovery rate. Vaibhav Muley, lead analyst for media and entertainment at Yes Securities, adds that while publishing income from the non-digital sector is growing, it remains below 10% of total revenue.
The Path Forward
The music industry’s increased enforcement efforts signal a determined stance against copyright infringement. While significant challenges remain, the collaborative efforts of music labels, industry bodies, and legal firms are crucial in protecting the rights of artists and creators, and ensuring a sustainable future for the Indian music industry. The ongoing legal battles and the need for a more efficient royalty collection system are key elements in the continued evolution of copyright protection in India.
The fight for fair compensation and the protection of intellectual property rights is far from over, but the increased vigilance and proactive approach by music labels suggest a more robust future for copyright enforcement in the Indian music industry.