different types of Society

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COPYRIGHT SOCIETY
ABSTRACT
Copyright society is an institution where management and protection of copyright in works of
copyright law are undertaken by the society. It assists authors and other owners of copyright
society to keep records of exploitation of their work. The article discusses the issue in relation to
distribution of license, the ways and means of collecting and distribution of royalty by the
copyright society. It further explains the role of different societies in executing their work and
the challenges that are faced by the society. The article also explores the impact of the new
copyright amendment 2012 on copyright society.
Introduction
Copyright societies are unique economic institutions which provide a private solution to the
administration of statutory copyright law via Collective Rights Management.1
They are
basically intermediaries that take up the monumental task of tracking the use of your artistic
work, and subsequently collecting and then distributing the royalties due from such use.2
These
societies simplify the task of individuals as they aide in tracking the usage of artistic works by
licensee which would determine the income quotient. Membership in these societies ensured the
copyright holders of reciprocal protection in countries to which India is signatory through
international Agreements.3
They play a predominant role in the life of all holders of Copyright
as a collective organization that ensures better protection and effortless method of reaping
optimum economic benefits from their creations. In this article the author endeavors to explore
the emergence of copy right societies & the impediments they face in execution of their function.
1
REGULATING COPYRIGHT COLLECTING SOCIETIES: CURRENT POLICY IN EUROPE
By Ruth Towse Professor of Economics of Creative Industries Erasmus University Rotterdam, Netherlands
towse@fhk.eur.nl and Christian Handke Centre for British Studies Humboldt-Universität zu Berlin, Germany
christian.handke@staff.hu-berlin.d found in http://www.serci.org/2007/towsehandke.pdf (07.03.2014)
2
COPYRIGHT SOCIETIES: FRIEND OR FOE AND WHAT TO KNOW Posted by Manojna Yeluri on September
17, 2013 · found in http://artistiklicense.wordpress.com/2013/09/17/copyright-societies-friend-or-foe-and-what-to-
know/comment-page-1/ (07.03.2014)
3
PERFORMERS RIGHT IN INDIAN LAW By Samya Roy Choudhury on 08 January 2011 Found in
http://www.lawyersclubindia.com/articles/Performers-Right-In-India-3401.asp#.UzKui6iSwrU (09.03.2014)

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Copyright Societies in India
Section 33 of the Copyright Act, 1957 paved the way for formation of Copyright Societies in
India to deal with collective administration of Society by authors and owners.4
The main
function of the society is to grant license to the third parties in respect of any work in which
copyright subsists or in respect of any other right transferred to them by the holders of
Copyright. The minimum membership required for registration of a society is seven. However,
role of the government is significant in the existence and functioning of copyright societies as it
effects several state institution such as national radio and television company, cultural program,
state registers, law and regulation (for example anti-trust law, civil and criminal procedure and
currency regulation) etc which have association with the activities of copyright society.5
Existence of more than one society for a particular kind of right in generally barred. But
copyright holders opine that, having more than one copyright society may create competition
between multiple copyright societies and will help keep in check any abusive behavior by either
one or two society. The various Copyright Societies for music in India are:
The Indian Performing Right Society Limited (IPRS)
The IPRS a nonprofit making organization, registered under Company Act, 1956. It came into
existence on 23rd
august 1963 due to the untiring efforts of the Senior6
members in this field. It
is a representative body of owners of music via….the composers, lyricists (author) and the
publishers of music. Registered under Copyright Act, 1957 it is the only copyright society to do
business of issuing licenses for usage of music (in terms of background music). In other words
IPRS is the only national copyright society in the country which is permitted to commence and
carry on the words or any action intended to be sung, spoken or performed with the music.7
It is an active member of copyright enforcement advisory council set up by the ministry of HRD
government of India to advice the government on copyright issue and its enforcement, and is also
4
http://copyright.gov.in/Documents/Copyright%20Societies.pdf (10.03.2014)
5
http://copyright.gov.in/Documents/Copyright%20Societies.pdf (12.03.2014)
6
MR.M.B.Sirinivasan and Mr.Naqsh Iyallprui. (14.03.2014)
7
http://www.iprs.org/cms/IPRS/AboutIPRS.aspx. (12.03.2014)

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a member of the core group on international convention consisting specialist in the field of
copyright and ministries of copyright in India.
When an issue arose as to whether newly emerging radio stations had to pay royalties to IPRS or
to PPL (Phonographic Performance Limited) the Calcutta High Court in deciding a landmark
case 8
held that if members of IPRS did assign their exclusive rights to the producers of movie
by agreement then radio stations had to approach the IPRS for licenses. Unless it is shown that
such rights were assigned in favor of the members of PPL, IPRS is entitled to claim royalties
from Radio Stations if they want to exploit the work.9
Accordingly, IPRS claim for royalties was
held to be well-founded and legitimate and it was held to be entitled to initiate proceedings to
protect the interests of its members.
Phonographic Performance Limited (PPL)
The Indian Phonographic Industry (IPI), the Association of Phonogram Producers, was
established in 1936 and it was instrumental in finalizing the Broadcasting License arrangement
in India. Subsequently, IPI members decided to form a specialized body to administer their
Public Performance and Broadcasting Rights, and so PPL came into being in 1941.10
After the 1994 amendments in copyright law, PPL was registered with the Government of India
in 1996, as the Copyright Society, permitted to carry on business in Sound Recordings. In PPL
Membership is voluntary. Membership has been steadily growing year after year and presently
stands at more than 300 labels, as compared to 65 members in 2002. Majority of members are
small labels, specializing in regional music. Currently, PPL administers more than 5 lakh songs
in Hindi, Telugu, Tamil, Bengali, Punjabi, Marathi, Malayalam, Bhojpuri and other Indian
languages, including film and non-film songs such as Ghazals, devotional, folk, pop, classical,
etc. In addition, lakhs of International repertoire (foreign) songs are also administered.11
8
Radio Today Broadcasting Ltd v Indian Performing Rights Society 2007 (34) PTC 174 (Cal), found in
http://www.mirandah.com/pressroom/articles-list/item/44-a-case-study-oncopyright.html?tmpl=component&print=1
(13.04.2014)
9
http://indiankanoon.org/doc/1750159/ (13.03.2014)
10
BY SOUND BOX Found In http://www.soundbox.co.in/ganesh-jain-is-new-imi-chairman/ (12.03.2014)
11
http://www.pplindia.org/aboutus.aspx (12.03.2014)

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They actively monitor for copyright infringements this includes exploitation of PPL
administered repertoire without license, non-reporting/under-reporting/suppression of actual
usage, etc. PPL initiates legal action, civil and/or criminal, against infringers in appropriate
courts of law.
The License requires the Licensees (excepting public performance in establishments) to provide
data, on electronic reporting formats where possible, listing each work exploited performed by
the Licensee, the title, the duration, the labels using standard ISRC codes, where possible. PPL
matches/ analyses the reported track-wise usage logs against its database of sound recordings of
its members in order to allocate the correct proportion of the revenues collected under License to
the appropriate right-owners. These are distributed on a regular basis to the members of the
society, at least once a quarter.12
When an issue arose as to whether Radio Stations would be obliged to pay royalty to PPL the
Calcutta High Court in deciding a landmark case. Decided that rate of royalty payable by the
Radio Stations would be dependent upon revenue earnings through advertisements. However
case went for an appeal in the Supreme Court by the appellant and learned Judge observed, it is
an order in rem and not in personem.13
Indian Reprographic Rights Organization (IRRO)
The IRRO is a Copyright Society in the field of published literary works incorporated in the year
2000 and was authorized to commence and carry on the Copyright Business in ‘reprographic
rights in the field of literary works’, by Ministry of Human Resource Development, Government
of India.
“With the assistance given by the society to the Individual & the Owners of the work by
providing a single window for getting their licenses for the work and for collecting royalty, that
in a way may reduce the possibility of copyright infringement and will help organization to take
copies for there reference.”
“The IRRO which represents authors and publishers recently approached the Delhi High Court
with the question of whether selling photocopies of Copyrighted books was fair use. The Court
12
TV Today Network Ltd vs Phonographic Performance Ltd
http://indiankanoon.org/doc/158026740/ (14.03.2014)
13
http://spicyip.com/search/Phonographic+Performance+Limited+%28PPL%29 (16.03.2014)

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provided a solution to photocopiers by urging them to take a license to reproduce parts of the
book for a fee. The money collected through licensee fee was to be distributed among the authors
and publishers of books copied.14
Indian Singers Rights Association (ISRA)
The amendment in the Copyright Act, 1957 which was executed to harmonize with Article 14
of the TRIPS Agreement as also in compliance with Articles 5 to 10 of the WPPT15
, paved the
way for the realization of ‘Performer's Right from June 21, 2012 in India. The singers
community converged to form Indian Singers Rights Association (ISRA) to collect and distribute
royalties to singers all over the country. About 85 percent of the Royalty money would be paid to
the singers while the rest will be used by ISRA for administrative purpose.16
With the amendment of the Performers' Rights the singing community acquired the following
benefits
 to make a sound recording or a visual recording of the performance
 To reproduce the performance in any material form including the storing of it in any
medium by electronic or any other means;
 To issue copies of the performance to the public not being copies already in circulation;
 To communicate the performance to the public;
 To sell or give the performance on commercial rental or offer for sale or for commercial
rental any copy of the recording and to broadcast or communicate the performance to the
public except where the performance is already a broadcast.17
14
BY Mallica Joshi, Hindustan Times http://www.hindustantimes.com/india-news/newdelhi/get-a-licence-evade-the-
photocopy-ban/article1-918956.aspx (17.03.2014)
15
WIPO Performances and Phonograms Treaty
WIPO: World Intellectual Property Organisation (17.03.2014)
16
http://m.newindianexpress.com/chennai/31792 (16.03.2014)
17
BY NANDIATA SAIKIA http://copyright.lawmatters.in/2012/06/the-performers-right-under-2012-act.html
(15.03.2014)

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However with the above benefits the singer community is finally able to get their dues in the
field of performer’s right.
Procedures for Collection of License Fees or Royalties:
License fee is collected upon issue of license or invoice/debit note or reported usage of
copyrights or as per contract/agreement, as may be appropriate to the transaction. The Society
submits monthly invoices to each licensee showing the amount of royalty payable for the
relevant previous month. On receipt of the invoice, licensee makes payment to the society
through normal banking channel.18
If the invoice submitted is not paid for 2 consecutive months, the society would be entitled to deduct the
amount due from the security deposit. The Society may cancel the license if outstanding is not cleared for
3 consecutive months by giving 30 days notice to the party.
However Following principles are applied, as far as practicable for distributing Royalties:
 Aim to ensure that basis of distribution is fair, accurate, cost-effectiveand without any
cross-subsidies.
 Distribution of royalties to be based on reliable statistical data that fairly represents the
commercial exploitation of the copyrights.19
Basis of distribution so far as Television broadcasting is concerned
Royalty distribution shall be as per actual usage of tracks in the TV programmes, to the extent
monitored. Not all channels/networks have taken license. Further, as it is not feasible and cost-
effective to monitor all channels across India on a 24 hours a day basis, monitoring may be done
18
http://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=6&cad=rja&uact=8&ved=0CEIQFjAF&url
=http%3A%2F%2Fwww.pplindia.org%2Fdocs%2FPPL%2520royalty%2520Distribution%2520scheme%2520to%2
520members%2520_AGM%2520Sept2012.pdf&ei=uMQeU6z_KcbDrAeMyoCwAg&usg=AFQjCNFhZ_nAZPsdL
YweJju8aA-3cV83gQ&bvm=bv.62788935,d.bmk (16.03.2014)
19
http://www.pplindia.org/docs/PPL%20royalty%20Distribution%20scheme%20to%20members%20_AGM%20Sept
2012.pdf (20.03.2014)

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on sampling basis, confined to main channels, main programmes and prime-time slots, that use
music significantly, including serials and reality/talent shows, in different categories [i.e. general
entertainment (national and regional) channels, music channels and news channels].
It is noted that Sampling technique has been adopted for many years by other overseas
phonographic performance copyright societies e.g. PPL, London, UK.20
With technology introducing new ways in distributing of music “PPL’s revenues from mobile
ringtones alone has zoomed up by 1857% in 6 years; from Rs. 7 crores to Rs. 137 crores.21
Tariff and Royalty Charged by different Societies
In the case of PPL, nature and quantum of fees or royalty in respect of sound recording in sectors
like All India Radio and Private FM radio station differ in a manner of “NEEDLE” hour charges.
The royalty for a Primary channel in an all India radio may range from Rs 450 per hour to Rs
790/-to Rs 900/- based on the city where it is located. In the case of Private FM radio the royalty
rates are Rs 2400/-per needle hour or 20% of net advertising revenue, whichever is higher–
Irrespective of city or town class. The rate varies for a Community Radio stations and the royalty
charged is Rs 2 (two) lakhs per annum (per station) & for Satellite Based Radio / DTH music
subscription is 40% of the end user price.22
However in the case of IPRS, there are as many as 47 categories from being a Club, Community
Radio Broadcast or a Live DJ Performance the rate differs for different sectors. Since DJ
performances are the rule of the day we shall deal with it in detail. The minimum royalty rate for
this sector is Rs 15000/-. However it may increase with the addition of person above 250. The
rate may differ if it is a live performance with DJ.23
20
By AAKSHITA BANSAL, AMITY LAW SCHOOL
http://www.cci.gov.in/images/media/ResearchReports/Vertical%20Integration%20in%20TV%20Broadcasting%20a
nd%20Distribution%20Sector%20in%20India_A%20Competition%20Audit.pdf (20.03.2014)
21
By T. Prashant Reddy graduated from the National Law School of India University, Bangalore, with a B.A.LLB
(Hons.) degree in 2008 http://spicyip.com/2011/02/numbers-continue-to-talk-ppls-revenues.html (20..03.2014)
22
http://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0CCYQFjAA&ur
l=http%3A%2F%2Fwww.pplindia.org%2Fdocs%2FPPL%2520Tariff%2520scheme%2520Radio.pdf&ei=nxAgU87
2FsOErAfsnICwBA&usg=AFQjCNHMxDXplDSOVLL4DA6D5FRfEP8nvA (19.03.2014)
23
http://www.iprs.org/cms/Tariffs.aspx (22.03.2014)

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In cases where there are no Admission charges or fees whatsoever rate follows in the following
manner Every additional capacity of 250 will be charged Rs 2500/- for DJ/LP
Capacity DJ LP/LP WITH DJ
0-250 15K 20K
251-500 20K 25K
501-750 25k 30k
751-1000 30k 35k
Though technology should have been a instrument for growth of a copyright society, the impact
is yet to be felt. In the financial year, 2012-13, IPRS earned just Rs. 44, 57, 27,256 (Rs. 44.5
crores) from royalties, as there was a small impact of growth in the earning capacity from the
financial year 2009-10.24
However in the case printed literary work of IRRO the tariff rate may vary on the basis of
whether they are government run education institution or private sector institutions and ,
whether they are profit or a nonprofit organization. From a school to college or a professional
course the rate varies from Rs 6000/-to 12000/- or even as high as Rs 24000/-. This rate may be
much higher when it come to a privately run institution25
. ISRA, deals with 21 categories of
rights for which Tariff rates are collected. For different category there are prescribed rules and
slab rate for the collection of royalty.26
Highlighting the Limitation Of The Copyright Society
In a landmark judgment27
decided by Delhi High Court the court held that the main function of a
copyright society is administration that included the right to issue licenses and collect royalties
and distribute the earnings amongst owners. The Court held that if in case there were disputes
24
BY T. Prashant Reddy graduated from the National Law School of India University, Bangalore, with a B.A.LLB
(Hons.) degree in 2008 http://spicyip.com/2014/01/almost-two-years-later-indias-new-copyright-law-makes-no-
difference-to-music-industry.html (17.03.2014)
25
http://irro.org.in/?page_id=15 (22.03.2014)
26
http://isracopyright.com/tariff_scheme.php (22.03.2014)
27
M/s Phonographic Performance Ltd. v. M/s Hotel Gold Regency & Others27
(MANU/DE/0942/2008)

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regarding the violation of these licenses issued by the society then in that case the copyright
society would have the right to sue. But the court held that copyright societies in their capacity as
licensees usually institute copyright infringement suits in their names on behalf of all their
members who are the actual copyright owners. But this judgment however put an end to this
practice by stating that until copyright owner provide an exclusive right to the society, the
society cannot institute a suit for copyright infringement in the name of the owners. This
judgement could lead to multiplicity of litigation as pending suits filed by copyright societies are
likely to be rejected and copyright owners will have to re file them in their individual names.28
Conclusion
Copyright Societies who are playing an important role as intermediaries between the copyright
holder and there licensee have strengthen the rights of the author and helps in streaming the
process of assignment of grant of licenses and retain the rights over the work created by them.
Though India have only one society in 1941, which used to deal with only one aspect of
“SOUND” recording new societies have emerged to carter to different sectors. However the
copyright amendment enlarges their role by requiring them to publish their tariff scheme which
would help us to check the mismanagement in societies. The amendment being silent regarding,
the definition of “royalty”, “process of distribution of royalty” may create difficulty in solving
disputes arising from such issues. The community of composers and lyricists will thus have to
constantly be on their toes to ensure that music labels and producers of films share royalties with
them as required under the amendments. It is likely that these players will use the judicial
process to cushion the impact of the amendments and achieve success to a certain degree. With
the revolutionary copyright amendment 2012 coming into force , the registrar of copyright will
have to demonstrate considerable skill in administering the copyright society under the new law.
The societies have upgraded themselves from mere collection agent to a corporate manager of
rights of its members. With the growth of technology introducing new sources of income like
Ring tunes, Caller tunes, on line distribution of music etc the role of copyright society is to
bound to grow larger in helping their members maximize the income.
28
http://indiankanoon.org/doc/36636/ (23.03.2014)

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