1. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
COMPULSORY
LICENSING OF
MUSIC
KRISHNAVENI.S
HEAD -RESEARCH
EMAIL
info@altacit.com
WEBSITE
www.altacit.com

2. INTRODUCTION
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
• Compulsory license is the term generally applied to a
statutorily license to do an act covered by an
exclusive right, without the prior authority of the
right owner. Compulsory license provisions afford
the facility of using protected material in certain
circumstances, as provided by statute, without
seeking the prior permission of the right owner
• The Copyright Act and rules made there under
contain elaborate provisions regarding licensing of
Copyright. Licensing under the copyright law can be
either voluntary or non-voluntary. Licensing can be
done not only with respect to the existing work but
also with respect to the future works.

3. THE RATIONALE BEHIND COMPULSORY
LICENSING OF COPYRIGHT
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
•
•
•
•
•
•
To correct imbalances in market forces
Protect those who wish to use a work for educational or noncommercial purposes
Useful when it is too burdensome to locate the author
Generally considered good for society
Tempers the exercise of market power
Discourages abuse of Copyright

4. AUTHORITY EMPOWERED TO
GRANT COMPULSORY LICENSE
CHENNAI
3rd Floor, ‘Creative Enclave’,
In the interest of the General Public the Copyright Board has
been empowered to grant compulsory license
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
•
where the copyright work is withheld form the public
(Section 31)
•
in case of unpublished Indian work (Section 31A)
•
Produce and Publish Translation (Section 32)
•
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
reproduce and publish work for certain specified purposes
(Section 32A).
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com

5. Grant of Compulsory License
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
•
Under section 31 of the Act the Copyright Board can grant a
Compulsory License on the satisfaction of the following conditions :(1) The work in respect of which the compulsory license is sought is
withheld from the Public.
(2) Owner has refused to make the work available to the Public.
(3) The ground(s) for refusal by the owner are not reasonable.
(4) Owner is being afforded an opportunity of being heard.
(5) The license in granted subject to the payment of royalty fixed by the
Copyright board.
Section 31(1) (b) confers on the Board the power to grant compulsory
licenses in works if it is satisfied that the copyright owners has refused
to allow communication to the public of the work and such refusal is
not reasonable. The licensee then will have to pay compensation and
follow such terms and conditions as determined by the Board and pay
fees to the licensor as prescribed.

6. COMPULSORY LICENSING - BY FM RADIO’S
EMERGENCE OF FM RADIO STATIONS
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
•
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
•
The government of India has been in the process of
privatising the broadcasting sector and has issued about 37
licenses to private players to run radio channels in different
parts of the country covering about 19 cities.
Majority of these private radio channels play film songs,
FOR which they should obtain a license from a copyright
society to play the film songs by paying a certain amount as
royalty. The royalty received by such copyright society is
shared with the original owners of the copyright.
• .
EMAIL
info@altacit.com
WEBSITE
www.altacit.com

7. CALCULATION OF ROYALTY BY
COPYRIGHT SOCIETIES
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
•
•
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
•
•
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
•
Every radio station to submit a monthly log sheet to Copyright
Societies to enable it to prepare a debit note or invoice and for making
payments to its members.
Copyright Societies to submit monthly invoices to each party showing
the amount of royalty payable for the relevant previous month. On
receipt of the invoice, the party will make payment to the Society
through normal banking channels.
If invoice submitted by Copyright Societies are not paid for 2
consecutive months, Copyright Societies would be entitled to deduct
the amount due from the security deposit. If the outstanding is not
cleared for 3 consecutive months, Copyright Society may terminate
the license by giving 30days notice to the party.
Rate of royalty payment during the prime time broadcast shall be Rs.
1,200/- per needle hour. The rate for the day time and for night time
shall be at a reduced rate.
.

8. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com

9. Music Broadcast Pvt. Ltd
vs.
PhonograPhic PerforMance Ltd .,
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
• In this case the Board held in favour of granting compulsory
licences under Section 31 (1) (b) of the Copyright Act, 1957 to
complainants FM radio providers against music providers such
as Phonographic Performance Limited (PPL). Here , the issue
in question was that whether the FM radio industry could claim
compulsory licensing on music owned by music providers such
as PPL.
• This was based on the argument that the latter were being
unreasonable in charging exorbitant royalties of FM radio
channel providers for music owned by the latter which in turn
was affecting public interest at large.

10. Contd.,
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
the Board observed that the Board can exercise its jurisdiction in this
regard, only if the copyrighted work in issue is,
(a) an Indian work; (“Indian work” will include sound recording made
or manufactured in India)
(b) has been published or performed in public;
(c) the owner of copyright has refused to allow communication to the
public by broadcast of such work or sound recording on such terms
which the complainant considers reasonable;
(d) complaint is made to the Board. Further, in order to fix a license fee
the in the absence of comparable license the Board decided to give a
judgment for a limited period from November 2002 to October 31,
2004 and directed the Registrar of Copyrights to issue compulsory
licenses to all complainants on following terms: Each complainant to
deposit Rs. 20 lakhs per radio station by way of security in favor of
PPL. They may furnish a bank guarantee as a substitute to deposit
Being aggrieved by the order, both the complainants and defendant
filed
an
appeal
before
the
Bombay
High
Court.

11. JURISPRUDENCE REGARDING
LICENSING MUSIC
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
•
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
•
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
•
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
The Hon’ble Supreme Court in its Landmark Judgment of
“M/s Entertainment Network (India) Ltd. Versus M/s
Super Cassette Industries Ltd” delivered on 16th May 2008
is :Sound Recording stands on the different footing than that of
other literary, dramatic or musical work and there is no
statutory requirement that a compulsory license can be
granted only once the work is withheld from the public.
Compulsory License can be granted even when the work in
not withheld form the public but on owner’s refusal to
permit a broadcaster to broadcast the work. Refusal also
means demanding of the royalty which is high or imposing
unreasonable restrictions therein

12. PUBLIC INTEREST
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
The argument regarding public interest was drawn up by pouring over
government’s policy regarding the involvement of private sector in FM radio
broadcasting over the years since the launch of the First Phase of
privatization in 1999.
The Board firstly held that comparing the cost of content for radio service
providers and TV Broadcasters was erroneous. While the former was bound
by government directive to be a ‘free to air’ service (wherein It cannot
charge any subscription from the public), the latter could and did charge the
viewers. Also there were many other restrictions regarding content aired on
radio broadcast as opposed to the television which again made comparing
the incomes and costs over these two different mediums, difficult.
All India Radio (AIR), a state owned enterprise and private sector FM radio
providers cannot be compared as AIR had for decades enjoyed a virtual
monopoly in the radio industry and could afford to make the royalty
payments. The nascent FM industry, on the other hand, already running in
loss, was hard pressed to pay the high royalty payments demanded by the
music providers of 14%-15% especially since its main content is music and
as it had too many restrictions on the type of content it aired unlike AIR.

13. PUBLIC INTEREST Cntd…
CHENNAI
3rd Floor, ‘Creative Enclave’,
•
It was advocated by the music providers that playing their content
over the radios was damaging their sale of music in physical
formats such as CDs and cassettes. However the Board pointed
out that the respondents had not sought to assess how much of the
loss was a result of newer digital formats such as IPODs, mobile
phones, TVs etc and internet piracy.
•
In fact the counter argument raised by the complainants seemed to
suggest that the popularization of music by the radio stations
would only boost the music industry.
•
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
The case was referred back to the copyright board for determining
"appropriate" royalties.
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com

14. ORDER OF THE BOARD
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
•
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
•
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
•
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
•
Interestingly, the Board while concluding that FM radio
broadcasters, though organized as business enterprises, thus
now owe a social obligation towards nation building, thus
serving public interest
fixed the royalty at “2% of net advertisement earnings of
each FM radio station accruing from the radio business only
for that radio station shall be set apart by each complainant
for pro rata distribution of compensation to all music
providers”.
The previous published tariff of PPL is Rs. 2400 per needle
hour or 20% of the net advertising revenue, whichever is
higher.
The radio channels immediately furnished the bank
guarantees and started playing film songs

15. APPEAL TO THE SUPREME
COURT
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
•
In the circumstances, the copyright owners approached the
Bombay and Delhi High Courts to set aside the Board’s order.
They have challenged the Board’s power to grant a compulsory
license, its terms and the amount of royalty payable.
•
Further, one of the radio channels has challenged the amount of
royalty fixed by the Board. In view of the complexity of the
matter, the High Courts proposed to move all the cases to the
Supreme Court and issued notices in this regard to
thecopyright holders. Therefore, a final decision in this regard
can be anticipatedfrom the Supreme Court shortly.
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com

16. INTERNATIONAL CONVENTIONS
-ON MUSIC LICENSING
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
•
Article 11bis OF Rome Convention
Authors of literary and artistic works shall enjoy the exclusive right of
authorizing:
(i) the broadcasting of their works or the communication thereof to the
public by any other means of wireless diffusion of signs, sounds or
images; (ii) any communication to the public by wire or by
rebroadcasting of the broadcast of the work, when this communication is
made by an organization other than the original one; (iii) the public
communication by loudspeaker or any other analogous instrument
transmitting, by signs, sounds or images, the broadcast of the work.
(2) It shall be a matter for legislation in the countries of the Union to
determine the conditions under which the rights mentioned in the
preceding paragraph may be exercised, but these conditions shall apply
only in the countries where they have been prescribed. They shall not in
any circumstances be prejudicial to the moral rights of the author, nor to
his right to obtain equitable remuneration which, in the absence of
agreement, shall be fixed by competent authority

17. ROME CONVENTION
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
• Article 12
Secondary Uses of Phonograms
• If a phonogram published for commercial
purposes, or a reproduction of such phonogram, is
used directly for broadcasting or for any
communication to the public, a single equitable
remuneration shall be paid by the user to the
performers, or to the producers of the
phonograms, or to both. Domestic law may, in the
absence of agreement between these parties, lay
down the conditions as to the sharing of this
remuneration.

18. ROYALTIES FOR MUSIC IN
DIFFERENT JURISDICTIONS
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
• Australia– 1 % of the gross earnings of the broadcaster
during the specified period
• China-- Free to air
• Japan– Director General of the Cultural Affairs Agency
determines the compensation to be paid
• United Kingdom– 3-5.25 of net advertising revenues
• USA- royalty payments will vary depending upon the
amount of license fees we collect and the number of payable
performances in any given quarter.
EMAIL
info@altacit.com
WEBSITE
www.altacit.com

19. Competition & Compulsory
License
CHENNAI
3rd Floor, ‘Creative Enclave’,
•
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
•
•
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
•
•
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Competition for the market should be promoted, and for
the same compulsory licensing should follow some
concrete rules and should not be granted liberally.
In the field of broadcast reproduction rights, however there is
a requirement for antitrust authorities to be more vigilant.
Broadcasting organisation tend to assimilate market strength
at a very fast pace and the tendency to abuse it is also very
high.
They may undertake a variety of activities that may foreclose
competition and create barriers to entry, all in the name of
reproduction rights.
Thus, the CCI need to keep such organisations and their
conduct under close scrutiny to maintain free markets.

20. CONCLUSION
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Though the judgment is a definite positive for the FM radio
industry, there still remains the question of whether it will
help serve the very purpose on which the judgment hinged –
that of public interest. Sure the average city dweller will be
able to get his regular dose of ‘top ten 90s singles’ on his way
to work, but it remains to be seen as to whether it would
really help incentivise greater expansion of the private radio
industry in tribal or remote areas wherein the revenue earned
is likely to be less.