Copyright Act – License for sound recordings – Phonographic Performance Ltd
PPL has monopoly in the sound recording market. It owns and controls public performance rights of over 400 music labels with 45 lakh international and domestic sound recordings. Admittedly, it also owns 8 to 90% of all sound recordings created in the country.
The deeds executed by the original first owners of sound recordings has assigned public performance rights in favour of PPL and also entitles it to grant licences to others for public performance.
PPL was a copyright society between 7.5.1996 to 21.6.2014. In 2012, sub-section (3A) to section 33 of Copyright Act was inserted requiring the copyright society again to register within a period of one year. The application of PPL for re-registration was rejected.
In this case, therefore, Section 33 has become cornerstone of the controversy.
In this background, the PPL issued notice dated 20.7.2022 to Azure to cease and desist from continued exploitation of the said sound recordings and thereafter, filed suit for permanent injunction.
Azure runs 86 high-end restaurants with turnover of Rs.161 crores.
The learned Single granted temporary injunction.
By this Order, it is submitted that PPL is permitted to circumvent regulatory scheme of Section 33(1) read with Section 33A by not registering itself as a copyright society and becoming the owner within the meaning of Section 18(2) for bulk of existing sound recordings and issuing licences to the persons at exorbitant rates at their own unreasonable terms.
HELD that admittedly, PPL was registered copyright society from 1996 to 2014 and therefore, it cannot lie in its mouth to contend that the section 33 requirement of registration as a copyright society did not apply to it.
The requirement of being a member of a registered copyright society, whether under Section 33(1) or under the first proviso thereto is, therefore, in our considered opinion, absolute and non-negotiable.
PPL can, therefore, issue or grant licenses in respect of the sound recordings assigned to it, of which it can claim ownership under Section 18(2) only in accordance with the registration granted under Section 33(3). Thus, PPL is not entitled to issue licenses without registering as copyright society or becoming a member of such society in respect of sound recordings assigned to it under Section 18(1) of the Copyright Act.
The issuance or grant of licenses for exploiting of works in respect of which a person claims copyright can only be done if such person is a registered copyright society or a member of a registered copyright society.
