Copyright

Kirti BalasubramanianPartner

Paarth SamdaniAssociate

Yashaswini HareeshAssociate

Key Developments

• Department for Promotion of Industry and Internal Trade withdraws notification which included internet transmissions in the statutory licensing regime

  The Department for Promotion of Industry and Internal Trade (DPIIT) has withdrawn its office memorandum dated 5 September 2016 which had extended the applicability of the statutory licensing regime under Section 31D of the Copyright Act, 1957 (Copyright Act) to internet transmissions. This withdrawal of the 2016 memorandum means that online streaming services will be unable to obtain statutory licenses for sound recordings, musical works, or literary works. This is likely to be a relief to copyright owners, who will be free to negotiate licensing arrangements without being vulnerable to licensing rates fixed by courts, outside their control.

  Section 31D was originally inserted in the Copyright Act in 2012 to allow broadcasters to obtain copyrights to certain works for the purposes of broadcasting and communication to the public. However, it did not specify whether internet broadcasters will be covered in its ambit. The DPIIT’s move follows the Bombay High Court’s decision of 20 October 2022 in Wynk Music Ltd. v TIPS Industries Ltd. where the division bench held that the statutory licensing regime was restricted to traditional radio and television broadcasting and performances. The Court ruled that exclusion of the term ‘internet’ was intentional and indicative of the legislative intent to not extend the regime to online streaming services. (To read our detailed update on the Bombay High Court’s decision, click here.)

• Delhi High Court grants ‘dynamic+ injunctions’ against rogue websites unauthorisedly displaying copyrighted works

  In a significant move to curb online piracy, the Delhi High Court granted ‘dynamic+ injunctions’ to various leading companies in the media and entertainment industry to prevent dissemination of their copyrighted works by unauthorised websites.¹ Unlike traditional injunctions, a ‘dynamic+ injunction’ allows copyright holders to easily implead any mirror/redirect/alphanumeric variations of the infringing websites, including related websites based on name, branding, identity, source of content, etc. This eliminates the need to file fresh petitions or repeatedly amend pleadings as and when such hydra-headed variants of the infringing websites crop up.

• Bombay High Court quashes circular exempting performance of music played at weddings from copyright infringement

  The Bombay High Court at Goa recently struck down a circular issued by the government of Goa dated 30 January 2024 (Circular) exempting music played at weddings from copyright infringement action under the Copyright Act.² The Circular was based on a public notice issued by the DPIIT on 24 July 2023, which sought to clarify exemptions for music played at religious ceremonies. However, the Circular also included weddings and associated events under the exemption, effectively allowing copyrighted music to be played without obtaining permission from copyright owners.

  The Bombay High Court found that the Circular had overstepped its authority and overextended the scope of Section 52(1)(za) of the Copyright Act, the exempting provision, to include weddings and related social festivities. It further observed that the terms ‘weddings’ and ‘events’ are not present in the statutory language of Section 52(1)(za). The Court underscored the importance of interpreting statutory exceptions narrowly and in accordance with the legislative intent, which focuses, in this case, on bona fide religious ceremonies rather than secular celebrations.

  This decision means that hotels, resorts, and event organisers must review their practices regarding the use of copyrighted music at weddings and similar events. Obtaining appropriate licenses or permissions remains the best course of action to ensure compliance with copyright laws. For hotel and venue owners, adhering to these requirements is crucial, because what constitutes a ‘bona fide religious ceremony’ will be determined on a case-to-case basis. While this might lead to increased costs and administrative burdens, ensuring proper licensing and compliance with copyright laws is a prudent approach to avoid potential legal liability.

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