This article has been written by Himanshu Sinha, pursuing a Certificate Course in Media and Entertainment Law: Contracts, Licensing and Regulations from LawSikho.
Table of Contents
Introduction
Nowadays it is very simple to get a music license in India because of two premier organisations that work exclusively for providing Music License in India. These two organisations are IPRS (The Indian Performing Right Societies) LTD and PPL (Phonographic Performance Limited). One needs a music license if one wants to use its copyrighted music and obtain royalties against it for being used for commercial purposes.
What is IPRS?
IPRS Limited is one of the organisations which collects royalties on copyrighted music from the users who use the music. All members of the IPRS give their full-fledged consent to clients and the fee received from those clients is distributed among its members after negating the administrative cost of the organisation.
The administrative and the policy work of the organisation is controlled by the board of directors, which is elected by its members in every general meeting. There is always an equal representation of authors and composers of music in each region.
The current Chairman of the Board is Mr Javed Akthar an author member of the IPRS.
Benefits of music license in India
There are numerous advantages of acquiring a music license in India.
Some of the benefits are as follows:
- Music license helps artists or the performers to use it as a medium to show their talent to the world.
- The music license helps in increasing the popularity of the songs or the artist and their events.
- The creation of the artist is well protected after getting the license, so there will not be any chance of larceny in the creation of an artist.
- The third party can easily download or subscribe to it with the name of the artist. It is, therefore, a good source of income for an artist
- Music License gives an artist the right to perform sound or music at public or to broadcast events.
Types of music licenses in India
There are many domains under which one can obtain a music license in India.
The categories defined under IPRS are as follows:
The first category is music license in India for public performances. In multiplex and shopping centre, arcades, IT, parks, etc. They can be used in hotels, guest houses, lodges, resorts, vacation homes, clubs and places of boarding and lodging. Event performance in the premises, Amusement park, Pubs and nightclub and shopping centres require license. Restaurants, Dining rooms, bars, lounges, coffee houses, cafes, and relatable premises are also considered. For Publications, Banquets halls and auditoriums, Sports, Service-oriented Premises, Waiting premises, Transport services require license. Music License in India for Television and Radio, Community Radio Broadcast, Television broadcast by satellite and radio show requires Music license.
Second Category for music License in India is for Streaming/OTT/ Physical Medium. Services of broadcasting of non-interactive music, Internet interactive music broadcasting services, Karaoke service on the internet and Use of motion pictures on electronic digital media downloading, rental, distribution and sale and physical media along with Utilization of Sound recording on Electronic Digital Medium through download and physical medium require music license.
Third Category for Music License in India is for CRBT or Ringtone use for ringing or call back tone.
Fourth category for Music License in India is for Commercial Purpose. Sound or music in advertising, videos or audio and promotional videos require license.
Fifth Category for Music License Forms is for live performance and General license form.
Effect on the industry
As per the Music Consumer Study 2018, the old process of physical licensing merely represented streaming revenue of the entire market. It was seen that only 5% of companies used to obtain license for public performance of the music they play. Now, after the introduction of digital distribution, companies can license the song online and this digital sale contributes to the total of 78.5%. Currently, the value of the music license industry is Rs. 665 Crore.
Why is this a revolutionary change?
PPL has introduced the portal PLUS thanks to which one can obtain a license for sound recording to perform on a public/online platform hence streamlining the benefits to the owners of the ‘sound recording. Because of this initiative streaming revenue proliferation has been clearly seen. This portal was set up to provide transparency and also to accelerate revenue collection
In the past, obtaining the license was considered as a long and cumbersome procedure. By introducing this simple and easy process, people are willing to obtain the music license and can get the license in no time.
The Digital Officer of PPL made a statement regarding the 6 month experience after the implementation of this online portal, “PLUS has proven to be a versatile but simple tool. We have already seen strong, measurable results in the form of reduced turnaround times and positive customer reviews. Soon, we plan on expanding its functionality to allow prospective customers to create their own licenses i.e. a DIY (do it yourself) portal. This will further simplify the application process and essentially allow anyone in India with a Smartphone or computer to apply for a PPL License with just the click of a button.”
So we can conclude that it is a very useful and an easy process for companies / users who can take the music license in a simplified way. Through this versatile process the income generation is very quick and smooth. This online portal is cost-effective and overrides the tiresome time-consuming step taken by PPL. In India, many industries are still not totally disdained in this respect, but it is high time that they should understand this system / framework / configurations and adapt to this technology.
Steps or procedure to obtain music license in India through IPRS
FOR BACKGROUND MUSIC
STEP-1 One has to select the music license category.
There are various categories of music license which are available, so the applicant has to decide in which category it wants to get music license in India.
STEP-2 Create an account
After deciding the category of music one wants to obtain, the candidate must register on the IPR site selecting the type of music it decided. He can create his account by filling in the basic information such as their name, address, phone number, E-mail ID, GST details, TIN, TAN, PAN etc.
STEP-3 Verification of contact details
After filling in all the details, the candidate needs to verify their contact details such as phone number and their email address.
STEP-4 Payment of Music License Fees
After verification, the applicant must agree to all the terms and conditions and should pay the required fees through online mode for the applied category of the music license. The fees can be transacted online through their dedicated portal. And after the completion of payment, the online receipt will be generated to intimidate the applicant through SMS or E-Mail.
STEP-5 Introduction Letter by IPRS
After the applicant pays the license fees, then the IPRS will send an Introduction Letter to the applicant. Through the Introduction letter, the IPRS intimidates the applicant that the applicant has been registered in the database of the IPRS.
IN CASE OF LIVE PERFORMANCE CATEGORY
In the case of a live show, the procedure is the same but the applicant will be required to provide additional information about the venue of the live event. The applicant can even affix or attach more venue details. The venue will be created against that applicant for further use of any event.
The procedure to be followed with respect to the venue is that in Venue creation case of the event being held, the venue is not created on the website. One has to fill out the details of the venue form and submit. The selection of sites from the list of existing sites is done. New location for a new event is provided.
The steps should be followed regarding the creation of events that are dates of events or show along with the appropriate charges or rates for the event will be paid. A minimum of ten songs to be performed at the event is mandatory. One has to Enter the song title and then the candidate must make a payment, as in the Background Music category.
Cost of Obtaining PPL & IPRS License
For Phonographic Performance license fees depend on various factors as listed below:
- Type of location
- Number of hours music played
- Number of songs played
- Capacity of the site
- Nature of business
The Indian Performing Right Society’s limited (IPRS) license is required in the live performance event hosted by a company. Typically, to calculate the fee the license fee for each square feet of your building is Rs. 1.5/sq. feet and the minimum royalty under their tariff is INR 50,000, etc.
What are the penalties for the offender?
Section 63 and 63 A. of the Copyright Act defines that in any event if a person or an entity does not follow the registration process or copyright and exercises activities such as in section 51 of the Copyright Act, then that person or entity or company will be liable of the following penalties:
The penalties in accordance with Article 63 are that if any person infringes copyright or other rights:
- Imprisonment of a duration of at least 6 months and up to 3 years; and
- Fine of at least 50 000 INR and up to 2 00 000 INR.
The sanctions according to article 63 are that when no one infringes copyrights or other rights and repeat offender then:
- Imprisonment for a period of at least 1 year up to 3 years; and
- Fine of less 1 00 000 INR and up to 2 00 000 INR.
Conclusion
Therefore, we concluded that without the Music License, no one is allowed to use the copyrighted music for their benefit. Before applying for any music license, one has to be sure about the type of license application. The procedure for obtaining this license is not very straight-forward. Thus, the decision for hiring professionals is recommended to get a Music-License in India.
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