LI Network
Published on: 02 October, 2023 at 15:44 IST
In a significant ruling, the Bombay High Court clarified the scope of compulsory licenses under copyright law, stating that they are applicable exclusively to traditional broadcasting platforms such as radio and television and do not extend to internet-based services.
The judgment, delivered on October 20, 2022, but made public on September 29, 2023, resolved a dispute between Airtel-owned Wynk Limited and Tips Industries Ltd.
The dispute arose when Wynk, a digital music app owned by Airtel, used songs owned by Tips Industries without their consent and without paying royalties. Wynk invoked Section 31D of the Copyright Act, which allows for compulsory licenses under certain conditions. However, Tips Industries contested Wynk’s interpretation, leading to a legal battle.
A division bench comprising Justices GS Patel and Gauri Godse upheld the single-judge order, ruling that Section 31D’s compulsory licenses are limited to traditional broadcasting services like radio, television, and stage performances.
The bench emphasized that this provision does not apply to internet-based services, where users have control over content, unlike traditional platforms where users can only tune in without influencing the content.
The court observed that Wynk’s service, which allowed users to download digital audio files without purchasing them, constituted commercial rental, falling outside the purview of statutory licenses under Section 31D. The ruling highlighted the commercial motives of Wynk, emphasizing that the company aimed to evade paying license fees rather than serving the public interest.
The bench’s decision clarified that Section 31D did not allow case-to-case determination of royalties and stressed the importance of entering into contracts with copyright holders for the use of copyrighted content. Senior advocate Ravi Kadam, representing Tips Industries, argued successfully that Section 31D applied only to traditional broadcast platforms, leading to the court’s ruling against Wynk.
