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COLLECTION & ADMINISTRATION OF COPYRIGHT – COPYRIGHT SOCIETIES (DETAILED ANALYSIS)

(Sections 33, 34, 35 of the Copyright Act, 1957)

Copyright owners (authors, composers, lyricists, producers, publishers) often find it difficult to individually manage licensing, collecting royalties, or enforcing rights.
To solve this, the Copyright Act created Copyright Societies — organizations that collect, distribute, and administer royalties on behalf of authors and owners.

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1. Meaning of Copyright Society

A Copyright Society is a government-approved body that:

• Licenses the use of works
• Collects royalties from users
• Distributes royalties to copyright owners
• Protects the rights of its members
• Maintains registers and accounts

It acts as the bridge between the content creators and the commercial users.

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2. Legal Provision — Section 33

Section 33 says:

• Only a registered copyright society can carry out “collective administration” of rights.
• No person or organization can issue or grant licenses without registration under this section.
• Societies must be registered by the Central Government.

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3. Functions of Copyright Societies (Section 34)

A copyright society performs these key functions:

(a) Licensing Rights

It issues licenses for:

• Public performance (songs, films)
• Broadcasting
• Communication to the public (restaurants, hotels, radio)

(b) Collection of Royalties

Charges fees from:

• Distributors
• Hotels, restaurants, cafés
• Broadcasting channels
• OTT platforms
• FM Radio stations
• Event organizers

(c) Distribution of Royalties

Royalty is divided between:

• Authors (lyricists, writers, composers)
• Owners (music labels, producers)

Usually in a 50:50 ratio after the 2012 Amendment.

(d) Protecting Members' Rights

Filing cases against infringers, monitoring unauthorized use, keeping databases of works.

(e) Maintain Transparency

• Accounts audited
• Annual reports
• Royalty distribution must be fair and proportionate

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4. Types of Copyright Societies in India

Only these societies are officially registered:

(i) IPRS – Indian Performing Rights Society

For:

• Lyricists
• Music composers
• Music publishers

Collects royalties for:

• Public performance
• Broadcasting
• Digital streaming

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(ii) PPL (Phonographic Performance Ltd.)

For:

• Owners of sound recordings (music labels)

Collects royalties for:

• Playing pre-recorded songs in events, hotels, FM radio

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(iii) ISRA – Indian Singers' Rights Association

For:

• Performers (mostly playback singers)

Collects royalties for:

• Use of singers’ performances
• Broadcasting
• Streaming services

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5. Rights of Copyright Societies (Section 35)

1. Exclusive right to issue licenses
2. Right to collect royalties
3. Right to file legal suits on behalf of members
4. Right to negotiate tariffs for use of works
5. Right to take action against non-paying users

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6. Benefits of Copyright Societies

For Authors & Creators

• They don’t have to chase thousands of users to collect royalties.
• Guaranteed royalties when work is used commercially.

For Users (Hotels, Restaurants, Radio, OTT)

• They get a single license instead of contacting each author separately.
• Avoid legal complications.

For Government

• Ensures transparency and statutory reporting.

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7. Case Laws on Copyright Societies – Detailed Analysis

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1. IPRS v. Eastern Indian Motion Pictures (Supreme Court, 1977)

Facts:
IPRS wanted separate royalty from film producers when songs were played in cinema halls.

Issue:
Does IPRS have the right to collect royalties once the music is included in a film?

Judgment:
Supreme Court held:
Once music is incorporated into a film, the producer gets complete rights to publicly perform it.

Significance:

• Limited the power of copyright societies at that time.
• Led to later amendments protecting authors.

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2. IPRS v. Aditya Pandey (Delhi High Court, 2011)

Facts:
Event organizers played copyrighted songs at functions without paying IPRS.

Issue:
Do performers and event managers need a license from the society?

Judgment:
Yes.
Public performance requires a license from the relevant copyright society.

Significance:
Strengthened the power of IPRS to collect royalties.

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3. Music Broadcast Pvt. Ltd. v. IPRS (2011)

Facts:
FM Radio stations refused to pay interim royalties.

Issue:
Can courts order provisional royalty payments?

Judgment:
Yes.
FM stations were directed to pay interim royalties to IPRS.

Significance:
Ensured continuous royalty flow to authors and owners.

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4. ISRA v. Sapphire Creations (Delhi HC, 2019)

Facts:
A dance company used songs featuring singers’ performances without paying ISRA.

Issue:
Does ISRA have standing to collect royalties for singers?

Judgment:
Yes.
Singers have performers' rights, and ISRA can collect royalties.

Significance:
Strengthened performer’s rights and the role of societies.

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8. Copyright Societies After the 2012 Amendment

The 2012 Amendment changed everything:

1. Authors get 50% share of royalties
2. Copyright societies must be democratic
3. Societies must include transparent royalty-sharing schemes
4. Mandatory audit and accountability
5. Protection of performers’ rights through ISRA

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9. Limitations / Problems of Copyright Societies

1. Delay in royalty distribution
2. Conflicts between authors and producers
3. Mismanagement issues (historically)
4. Lack of awareness among users
5. Enforcement difficulties in small events or local areas

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10. Conclusion

Copyright societies are essential for collective administration, licensing, and royalty management.
They protect authors, performers, and music labels while ensuring lawful use by businesses.
Recent reforms and case laws have strengthened their authority and accountability.

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