Music licensing a legal must? What recent court rulings mean for public events

Music is an integral part of any event, whether it be a wedding, a corporate gathering, a club night, or a large-scale concert. However, what often goes unnoticed is the legal obligation to obtain proper licensing before playing copyrighted songs in public.

Recent court rulings have reinforced the significance of music licensing, underscoring the necessity for establishments and event organisers to comply with copyright laws to avoid legal repercussions.

Music licensing is governed by the Copyright Act, 1957, which requires that anyone using copyrighted music in a public space must obtain a license from the copyright holder or an authorised representative. This applies to lounges, hotels, pubs, banquet halls and even wedding venues. Failure to comply with this legal requirement can result in both civil and criminal action, including injunctions, financial penalties and reputational damage.

In recent years, the Indian judiciary has taken a firm stance on copyright enforcement, passing multiple rulings that have strengthened the rights of copyright holders.

1. Bombay High Court recognises licensing rights (January 2024)
   The Bombay High Court, in its judgment dated January 24, 2024, explicitly recognised the rights of copyright owners to issue licenses under Section 30 of the Copyright Act, 1957. This ruling confirmed that businesses must obtain proper authorisation before playing copyrighted sound recordings at their venues.

2. Delhi High Court injunctions against unauthorised use (September 2024)
   A series of injunctions have been granted against prominent commercial establishments including Hyatt, Lemon Tree, Trident, Leopold Café and several others for unauthorised use of copyrighted sound recordings. The Delhi High Court issued a specific injunction against Hyatt India Consultancy, barring them from playing copyrighted music without a valid license. This serves as a precedent, signaling that courts are taking stringent action against those who fail to comply with music licensing laws.

3. Goa government circular quashed (August 2024)
   The Bombay High Court struck down a government circular that attempted to prevent copyright owners from collecting royalties for public performances of music at wedding-related events. The Court ruled that the circular was contrary to the Copyright Act, 1957, reaffirming that copyright owners have the legal right to collect royalties for the public performance of their works.

4. Marriage and social gatherings also require licenses
   The Punjab & Haryana High Court, in an order dated May 19, 2022, quashed an attempt to limit copyright enforcement, ensuring that copyright holders maintain their authority to issue licenses. A landmark ruling from July 27, 2011 had cemented this stance, stating that even DJs playing music at wedding functions must obtain a license.

With these court rulings setting a strong legal precedent, it is now more critical than ever for event organisers, venue managers and business owners to adhere to copyright laws. Here’s what they need to know:

• A public performance license is mandatory: Any commercial establishment or public venue playing copyrighted music must secure a public performance license to avoid legal action.

• Legal consequences of non-compliance: Unauthorised use of copyrighted sound recordings can lead to injunctions, legal fines and even criminal action, resulting in loss of business and reputational harm.

• Protecting artists’ rights: Ensuring proper licensing means that royalties are fairly distributed to music creators, preventing unauthorised entities from profiting at the expense of artists and record labels.

The importance of obtaining a valid music license before playing copyrighted music at public events cannot be overstated. With the judiciary actively reinforcing copyright protection, establishments must ensure compliance to avoid costly legal battles. By securing the appropriate licenses, businesses and event organisers not only adhere to the law, but also contribute to a fair and ethical music industry where artists and copyright owners receive their rightful royalties. As music continues to be a crucial element in social and commercial events, staying legally compliant is the best way forward for all stakeholders involved.

Miket Kanakia is the Director of Novex Communications.