2024January 2024LatestLegal

Section 33(1) of the Copyright Act, 1957 does not curtail power of owner to grant any interest in the copyright by license under Section 30 – Status of Copyright Society and the Owner in the scheme of Copyright Act

Suits by the plaintiffs – Novex Communications Pvt Ltd and Phonographic Performance Ltd (PPL) for perpetual injunction restraining the Defendants from publicly performing or communicating the recordings of the songs assigned  and authorised to PPL, in any manner without obtaining licences  from the plaintiffs.

PPL owns and controls, by exclusive licences, the public performance rights of various music labels of international and domestic recordings.

The defendants raised an objection that the plaintiffs cannot seek such reliefs without their registration as copyright Society under Section 33(1) of the Copyright Act, 1957.   Secondly, the PPL cannot sue without joining the owner in respect of the exclusively licensed works.

The term “no person” in Section 33(1) includes an “owner” of copyright and therefore, even an owner of copyright cannot commence or carry on the business of granting licences.

In view of partial assignment created in favour of PPL and Novex to communicate sound recordings to the public, the assignee is an “owner” of the copyright under Section 30.

The idea of a Copyright Society is to assist the owner and not to take away rights from an owner.  A copyright society fundamentally operates to administer the rights in respect of works that belong to “others”.   Copyright Society may wear two hats – (I) as an authorized agent and (ii) as assignee.   It administers the rights of “owners” by operating as an agent.   An auhor or other owner / assignee does not have to carry on the business of licensing works only through a copyright society.   If owner withdraws its authorization from copyright society, the owner can independently exercise rights under Section 30 to grant licences.  No new right is created in favour of copyright society independent of the owner or independent of it being a duly authorized agent.   

Both Sections 34 and 35 have clear distinction between the author / owner of the right on the one hand and the administrator of that on the other (I.e. the copyright society).

Judgment dated 24.1.2024 in Commercial IP Suit NO.264 of 2022 of Novex Communications Pvt Ltd Vs.  Trade Wings Hotels Limited with connected matters

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