As per Copyright Act, 1957 all businesses that play pre-recorded music in the form of Gramophone records, CDs, music Cassette, Radio, TV or in Audio-Visual form, etc. need to take Music License. The business organization must take prior license from the Copyright Society for Sound Recording which is Phonographic Performance Limited (PPL) before they start to play music in the restaurant or Cafe. It is mandatory for all who play music in public places for any commercial purpose to take a license before they start to play music. If the Restaurant have singers to sing any song in the business premises or holding a live concert or band etc, license is required from Indian Performing Rights Society (IPS).
There are two kinds of Licenses:
1. PPL License for playing pre recorded music
2. IRPS License for and other activity not involving pre-recorded music.
A copyright society is a registered collective administration society under Section 33 of the Copyright Act, 1957. Such a society is formed by authors and other owners. The minimum membership required for registration of a society is seven. Ordinarily, only one society is registered to do business in respect of the same class of work. A copyright society can issue or grant licenses in respect of any work in which copyright subsists or in respect of any other right given by the Copyright Act. The business of issuing or granting license in respect of literary, dramatic, musical and artistic works incorporated in a cinematograph films or sound recordings shall be carried out only through a copyright society duly registered under this Act. This is a kind of compulsory collective licensing for managing of performing rights.
The fee of the PPL license depends on:
- The type of place
- Number of hours
- Number of songs played
- Capacity of the venue
- The type of business
Generally, the license fee for each Square feet of your building is Rs. 1.50/sq. feet and the minimum royalty under their tariff is Rs. 50,000, etc.
License is required for the following activities at business place:
- Public performances
- Band performances
- Singers performing at your business
- Any other activity which do not involve playing pre-recorded music
- Personal details of business owner such as, name, address, nationality, etc.
- Details of the type of business
- In case of business is an LLP, certificate of Incorporation
- List of the type of music to play
- GST registration certificate, if required
- PAN Card of Owner
- Any Address proof (Electricity bill, Driver's License, Voter ID Card, etc.)
- Any other documents which might be required
Section 63 of the Copyright Act
any person who infringes the copyrights or other rights is liable for:
Imprisonment for a period of not less than Six months which may extend to Three years and;
With a fine not less than Fifty Thousand Rupees which may extend to two lakh rupees
Section 63 A of the Copyright Act
Any person who infringes the copyrights or other rights and is a repetitive offender is liable for:
Imprisonment for a period of not less than one year which may extend to Three years
With a fine not less than One Lakh Rupees which may extend to Two Lakh Rupees
Indian Performing Rights Society (IPRS) is a Copyright Society that legitimizes the use of Copyrighted Music Works used by consumers by providing them licenses and collecting royalties on behalf of its members, i.e. people who make music such as composers, authors/lyricists and music publishers/music companies. The royalties that the institution collets is distributed among its members after deducting the Administration costs of the IRPS.
Phonographic Performance Limited (PPL) is a United Kingdom based music
licensing and performance rights organization founded by two record companies
namely Decca Records and EMI in May 1934. According to the records PPL holds the
royalties for over 1, 00,000 performers and recording right-holders in the year
2019. Businesses need to take the PPL License to be able to play music in a
public place in any pre-recorded form such as CDs, Radio, TV, etc. The term
"playing in public" is defined by the UK Courts as playing music anywhere
outside the domestic setting. So, playing music at places like public events,
workplace, or any other workplace can be considered as "playing in public" and
it requires a prior license before starting to play music. The PPL license
holder has the permission to/ is entitled to play music from the PPL's
repertoire or the commercially released music registered with the PPL. However
the music that is outside the PPL's copyright terms or freely licensed no not