Newstrack

Hotels need to pay license fee to play music

Praveen K Singh - New Delhi

Phonographic Performance Limited (PPL) and Indian Performing Rights Society (IPRS) have served legal notices to hotels companies across the country for not paying license fee for playing music in their pubs. While organising musical nights and theme-based parties on the eve of New Year, hotel companies face this problem every year.

PPL and IPRS, which have the copyright for recorded music played in public areas and rooms in hotels, as also for video films shown on television. These societies are charging license fee for the same product. IPRS charges license fee for the rights of the authors (lyricists) and composers while PPL charges license fee for sound recording of the music.

Though FHRAI has already filed a case on behalf of these hotels to contest claims of these claimants of copyright royalties, it is still pending with the Delhi High Court. Secretary general of FHRAI, Harish Sud, says, "The matter is sub judice and we would not like to comment on it as of now."

Sowmya Choudhary of PPL exclaims, "These hotels companies earn a lot in organising musical nights and parties but when it comes to pay for the commercial use of music they prefer to shirk away." On earlier occasions, music companies and agencies like T-Series, PPL and IPRS have served notices for their claims towards copyright ownership and share of royalties.

Parna Patkar of Yash Raj Films says, "If we compose a tune and it is played in pubs, discos or even live shows, we should rightfully be earning royalties on the music. Any use of the audio or visual content from our films in any form, manner or context, whether at a ground event, its telecast or promotions without our express permission and payment of requisite fee is unauthorised usage and subject to suitable action."

As per Section 13 of the Copyright Act 1957, in original literary, dramatic, musical and artistic works, cinematograph films, and sound recording, 'copyright' means the exclusive right subject to the provisions of the act. She describes that rights of broadcasting organisation and of performers are dealt with in Chapter VIII, which provides in Section 37(1) of the Copyright Act, 1957, that every broadcasting organisation shall have a special right to be known as "broadcast reproduction right" in respect of its broadcasts.

The word 'broadcast' means communication to the public by any means of wireless diffusion, whether in any one or more of the forms of signs, sounds or visual images or by wire and includes a re-broadcast, as defined by Section 2(D) of the act. The expression 'communication to the public' is defined by Section 2(F) to mean making any work available for being seen or heard or otherwise enjoyed by the public directly or by any means of display or diffusion other than by issuing copies of such work regardless of whether any member of the public actually sees, hears or otherwise enjoys the work so made available. However, Lalit Bhasin, senior advocate who is representing the hotel industry, explains, "Our contention before the Hon'ble High Court is that for the same product there cannot be two license fees."