LEGAL AGREEMENTS
(MUSIC LICENCE) Registration - An Overview
Business units are not permitted to play music in public spaces for commercial purposes without first obtaining a music licence. All cafes, restaurants, hotels, pubs, and bars that play pre-recorded music in their establishments must get a music licence under the Copyright Act of 1957. The process of obtaining permission for the approval, validation, and protection of musical works is known as obtaining a music licence. The ‘musical work’ is defined as a work consisting of music and including any graphical information of such work but does not constitute any words or other act intended to be spoken, sung, or performed with music under Section 2 (p) of the Copyright Act, 1957. The “Phonographic Performance Limited” (PPL) of the Copyright Society for Sound Recording grants music licences to restaurants and cafes who want to play music in their establishments.
WHO CAN OBTAIN A MUSIC LICENCE IN INDIA?
To prevent any penalties, any business that wants to play pre-recorded music in their establishment needs obtain a music licence If you are participating in any of the following activities, you will require a music licence:-
- Music License for Public Performances in multiplex, hotels, events premises, malls, pubs, banquets, etc.
- Music license for band performances, broadcasting music on television and radio.
- Music license for interactive and non interactive music streaming on the internet.
- Music license for caller ring back tune
- Music license for Singers performing at your business, the use of sounds or music on commercial TV, advertisement, etc.
WHAT ARE THE LEADING ORGANIZATIONS THAT PROVIDE MUSIC LICENCES?
PPL (Phonographic Performance Limited) & IPRS (The Indian Performing Right Societies Ltd) are 2 leading organizations that offer Music License in India. Playing music in public spaces for any commercial reason, it is obligatory for all to obtain music license.
FOR PLAYING PRE-RECORDED MUSIC
Copyright Society for Sound Recording which is ‘Phonographic Performance Limited’ (PPL) approves music license to business such as restaurants & cafes who want to play music in their commercial premises.
- Radio License for Private FM, Govt owned Radio Station/even Community Radio Station
- It also includes License to play pre recorded music as background music in commercial-public. With only this license one is unable to organize any kind of event, show, & concert dance shows etc. In addition, for such performances, you need a different license.
- License to play music at a public events such as shows, promotion event, fashion shows, DJ parties etc
- License for temporary storage space, embodiment/transfer of sound recordings. Storage such as storing songs on their DJ system/for transmission/storage on computer servers by the aggregators.
FOR PERFORMING LIVE MUSIC
- Music License for Public Performances in hotels, multiplex, events premises, pubs, malls, banquets, etc.
- License for giving out music on television & radio.
- Music license for interactive & non-interactive music living on the internet.
- License in India for Caller Ring Back Tone (CRBT) or Ringtone
- Music license for the use of sounds/music on advertisement, commercial TV, etc.
WHAT ARE THE TYPES OF MUSIC LICENCE?
Following types of music license are allotted to the artist for their creations:-
- Sync License
Music that has already been created is synced with some visual assets in this style. Music licences are held by a wide range of users, including TV advertisements, advertising agencies, film studios, and so on. - Mechanical License
The goal of this licence is to make an artist’s work available to the general public through CD production, online music distribution, and other forms of dissemination. Even minor changes to original components, such as remixing, adding own lyrics, or changing anything about the original composition, require a mechanical licence. - Master License
The Master licence is more complicated than other licences, and it comes with a sync licence. This licence permits the licensee to use the song’s pre-recorded version in any audiovisual project, but it does not allow the music to be re- recorded. - Public Performance License
This is the most popular type of licence for transmitting a copyrighted work by an artist. Businesses that play music in their jukeboxes or give public performances, such as concerts, must obtain this licence. - Print Rights License
This licence refers to a physical copy of sheet music that has been created by anartist. It’s required whenever a sheet music compilation is printed, or whenever copyrighted work’s sheet music is re produced. - Theatrical License
Theatrical licences, which are a highly specific type of formal permission, are very common in the theatrical industry. When a copyrighted work is performed onstage in front of an audience, the licence is required.
WHAT ARE THE DOCUMENTS REQUIRED TO GET MUSIC LICENCE?
- Personal details such as name, address, nationality
- Details regarding the business
- Detailed list of music type that you will play
- If you are into an LLP business then it is necessary for you to submit certificate of incorporation
- PAN Card
- GST registration certificate
- Address Proof such as Electricity bill, driver’s license, voter ID card
WHAT ARE THE REQUIREMENTS FOR OBTAINING A MUSIC LICENCE?
To obtain a music license for your restaurant/store you require to look into the fundamentals are requirements of the license before applying for it, which are as given bellow:-
- The audible range of music,
- The area up to which the music is audible (in square meter),
- The number of seats in your restaurant,
- The type of area where the music will be audible such as the dining area, restrooms, bars, kitchens, etc.,
- The type of device used to play music such as radio, CDs, TV, etc.
WHAT ARE THE FEES APPLICABLE FOR MUSIC LICENCE?
The Music License identifies the conditions of use, the time period of license and the rate of royalty that will be offered to the owners of the copyright. The copyright society accumulates fees of music license and gives it over among the owners of copyrights. The amount of fees of a music license obtained depends on the following factors:-
- The type of place wherever the music is being played,
- The no. of hours the restaurant/store streams the music,
- The no. of songs played at the restaurant/store,
- The capacity of the area where the music is being played,
- The type of business you are occupied in.
However, where a music license is received from IPRS for steaming a live performance at your restaurant/store, the amount of fees (/royalty rates) for a music license is Rs. 10k per annum for Metro/Major cities & Rs. 5k per annum for the Non Metro cities. A variety of tariff schemes are accessible depending on the type of events carried on at your restaurant/store, the minimum royalty fee for the public performance of music at stores is Rs. 2500 per 5k sq. ft. While, for the music license attained from ISRA, the Royalty/license fees would be designed to a minimum of Rs 3,650/- P/A. If you be unsuccessful to make payment for the music license granted by PPL, you will be legally responsible to pay an interest of 18% P/A with a penal charge up to Rs 2 lacs, whereas, for the non payment for the music license granted by IPRS, you will be legally responsible for an interest rate of 30 % P/A.
WHAT ARE THE PENALTY AVAILABLE FOR THE OFFENDERS?
Section 63 of the Copyright Act says that any individual who breaches the copyright or other rights is accountable for:-
- Detention for a period of not less than six months which may extend upto three years and
- Offender is liable to pay a fine of not less than fifty thousand rupees which may extend to two lakh rupees
As per Section 63, any individual who infringes the copyright or other rights is accountable for:-
- Detention for a period of not less than one year which may extend to three years and
- With a fine not less than one lakh rupees which may extend to two lakh rupees.
WHO CAN OBTAIN MUSIC LICENCE?
Any business who wants to play pre-recorded music in their premises should acquire music license to avoid any forfeit. Business unit can be a hotel, restaurant, pubs, events, malls, cinema halls, sports events, product launch, aircrafts or any other place where music is played.
WHAT IS THE PENALTY FOR INDIVIDUAL WHO BREACHES THE COPYRIGHT?
- Detention for a period of not less than six months which may extend upto three years and
- Offender is liable to pay a fine of not less than fifty thousand rupees which may extend to two lakh rupees
WHY TGA INDIA LLP SERVICES?
Our TGA INDIA LLP SERVICES experts will be at your disposal to provide you with guidance on Music License and its compliance in order for your business to run smoothly in India. Professionals from TGA INDIA LLP SERVICES will help you plan smoothly and efficiently at the lowest possible cost, ensuring that the process is completed successfully.