A Comprehensive Guide on Online Music License in India

Music is an integral part of our lives, with its universal language transcending barriers and bringing people together. In India, where music holds immense cultural significance, obtaining a music license in India is crucial for those involved in the creation, distribution, and public performance of copyrighted musical works. With the rise of online platforms and streaming services, it has become essential for artists, producers, and distributors to understand the concept of online music licensing. In India, the process of obtaining an online music license involves several steps to ensure legal compliance and protect the rights of creators and copyright holders. In this article, we will explore the online music license in India and the process of obtaining one. 

Before we move on to the procedure of getting an Online Music License in India, let’s first understand about what is exactly the Music License in India is, and then we shall discuss about the procedure of getting an Online Music License in India.

Meaning of Music License in India

A Music License is a legal agreement that grants permission for the public performance, broadcasting, synchronization, or reproduction of copyrighted music. It ensures that the rights holders receive fair compensation for the use of their musical compositions. In India, music licensing is governed by the Copyright Act, 1957, and various other regulations and guidelines issued by the relevant authorities.

A musical work, according to Section 2 (p) of the Copyright Act, 1957, is a work consisting of music and including any graphical information of such work but does not include any words or any act intended to be spoken, sung, or performed with music.

Phonographic Performance Limited (PPL), a subsidiary of the Copyright Society for Sound Recording, grants music licenses to restaurants and cafés who want to play music on their premises. If a company wants to host a live performance with vocalists, they must apply for a license from the Indian Performing Rights Society (IPRS).

If a hotel, restaurant, event, mall, movie hall, sporting event, product launch, airline or any other venue where music is played want to play pre-recorded music on their premises, they must obtain a music license in order to prevent legal action. A music license can be used for any of the following purposes:

• Public performances in theatres, hotels, event venues, malls, pubs, banquet halls, and so on.
• Performances by Bands 
• Music is broadcast on television and radio.
• Internet music streaming, both interactive and non-interactive.
• Ringtone for Phone
• Singers performing in hotels, and clubs, for example, 
• The use of sounds or music in television or radio adverts, for example.

Music License in India allows artists to earn royalties for their work by granting permission to someone who wants to use it. 

If a person or entity utilizes another person’s songs that another person will listen to, they must have a music license. This license will include usage and term rights, which will determine how the song will be utilized.

Meaning of Online Music License

An Online Music License is a written agreement between the owners of the music and the music user that allows them to utilize their music. By granting Online music licenses to music users, artists or copyright holders earn money in the form of royalties. It also offers them sole ownership. Though only the owner of the Music can enjoy the following benefits-

• Make use of their music in public
• Their song was recorded in audio and video formats
• The song has a new arrangement and variations
• Make duplicates of the printed lyrics or music
• By using a radio or television recording

After obtaining an Online Music License from the Copyright owners, a music user can enjoy the same benefits.

Kinds of Online Music License in India

Before using copyright music, it is critical to seek permission from the song’s owner by obtaining an Online Music License. There are various forms of Online Music Licenses in which the owner can grant a license based on the type of stream the music user prefers.

There are six kinds of online music licenses, which facilitate approval for practically all musical usage. These are:

• Synchronization License- A Synchronization License is an Online Music License that is granted when a music user wishes to record a song written by someone else in video format. Synchronization Licenses are most typically provided for YouTube and cover song videos, as well as corporate videos. It is an agreement between the music user and the owner of copyrighted songs that allows the user to release the song in video format.

Note: Even if the user is only using a small portion of the song, a Synchronization License is required.

A Synchronization License is not required in the following cases: A license for synchronization is not necessary where-

• The song was written by the person for herself.
• Songs that is already well-known to the general public.

For medleys, for instance, each song component requires a separate Synchronization License.

• Mechanical License- The Mechanical License is a permit given to the music user allowing them to publish the song in the Audio format. This license is typically granted for usage with cover songs or copyrighted music. Similar to Synchronization Licenses, a Mechanical License is required even if just a small portion of the music is used. For audio songs exclusively, a Mechanical License is a type of Online Music License that can be obtained by communication audio streaming, compact discs, or digital downloads.

A Mechanical License is required in order to utilize someone else’s original song (Audio), under which the user must pay the composer in exchange for permission to do so. A specific copyright clause known as Compulsory Mechanical Licensing was introduced in order to promote inventiveness in the music industry.

• Master License- An agreement between a music user and the owner of a copyrighted audio recording that grants permission to use the recording is known as a Master License. It is a specially negotiated online music license. Only the owner of the copyright may give a Master License, and the procedure may be somewhat complicated. You must make an effort to independently locate the copyright holders and secure consent for the Master License.

Example: A Master License is required to use the well-known original recording for commercial or corporate purposes. Mashups, ad campaigns for television, film, and other media are further instances that also needed a Master License.

Because the Master License holder maintains a proper check on their work, Master Licensing is challenging to obtain. In the event of a Master License, the owner is free to choose the price and decide whether to accept the License.

• Print License- Rearranging, printing, or displaying the song’s lyrics or music is permitted with a Print License. Similar to a Master License, which can be directly given by the Copyright Holder, a Print License is Custom Negotiated. Because it is difficult to obtain the Print License, it is crucial to obtain one before estimating the distribution release date.

Note: A Print License is required, even for just a short section of the music. A Print License is necessary for any new arrangements of already-existing compositions.

You need a Print License, for instance, if song lyrics that are protected by copyright are printed or displayed on your company’s website.

• Public Performance License- Online music licenses in India that allow for public or online performance are known as Public Performance Licenses. Every time a user publicly performs a song that he did not write, he is required to get a Public Performance License. Additionally, Public Performance Licenses are necessary if the recorded music is played in a public setting, such as a concert or club.
• Who Manages Public Performance Right?- The organizations, locations, and radio stations where a particular piece of music is played should be in charge of managing the public performance rights. Small artists and DJs frequently don’t need to obtain a Public Performance License for private events, nevertheless.
• Theatrical License- Theatre Licenses are fairly frequent in the industry. An individual can use a copyrighted song in a play, theatrical production, or dramatic performance with the help of a theatrical License, which is an online music license.

Theatrical License must be obtained prior to any public display. Any time a copyrighted work is performed on stage in front of the public, a Theatrical License is necessary.

Similar to the Master License, an effort must be taken to independently locate the rights owners and secure authorization for Theatrical License.

Leading Organizations that provides Online Music Licenses in India

Some of the leading organizations in India that provide online music licenses, ensuring a fair and legal music ecosystem for all stakeholders are as follows:

• Phonographic Performance Limited (PPL)- Phonographic Performance Limited (PPL) is one of the primary organizations in India responsible for granting licenses for public performance, broadcasting, and communication to the public of sound recordings. PPL represents a vast repertoire of domestic and international music and works towards safeguarding the rights of music labels and artists. They offer a comprehensive range of licenses tailored for various sectors, including radio and television broadcasters, digital music streaming platforms, and live event organizers.
• Indian Performing Right Society Limited (IPRS)- The Indian Performing Right Society Limited (IPRS) is a collective management organization that administers public performance and broadcasting rights for musical works. It represents a wide spectrum of songwriters, composers, and music publishers in India. IPRS issues licenses to broadcasters, digital platforms, live event organizers, and other music users, enabling them to legally use copyrighted music. Their licensing framework ensures that creators receive fair compensation for their creative endeavors.
• The Indian Music Industry (IMI)- The Indian Music Industry (IMI) is an apex trade body representing the recorded music industry in India. IMI works towards promoting the rights and interests of music companies, including major labels, independent labels, and distributors. They actively engage with various stakeholders in the music ecosystem to develop licensing models that suit the digital age. IMI licenses its vast music repertoire to online music platforms and ensures that creators are rightfully compensated for their work.
• Copyright Society of Composers, Authors, and Publishers of Music (COSCAP)- The Copyright Society of Composers, Authors, and Publishers of Music (COSCAP) is an organization that specializes in music copyright administration. They represent a large pool of domestic and international music composers, lyricists, and publishers. COSCAP issues licenses to various music users, such as broadcasters, digital platforms, public venues, and event organizers, granting them the right to use copyrighted music in their respective domains. Their licensing services contribute to maintaining a fair and transparent music licensing landscape in India.

Benefits of having Online Music License in India

Some of the benefits of having Online Music License in India are as follows:

• Legally Compliant Music Usage – One of the primary advantages of obtaining an online music license is that it ensures that your use of music is legal and compliant with copyright laws. By acquiring the necessary licenses, you can avoid potential copyright infringement claims, legal disputes, and costly penalties. It provides you with peace of mind, knowing that you are operating within the boundaries of the law.
• Wide Repertoire of Music- With an online music license, you gain access to an extensive repertoire of licensed music. Licensed music is typically curated from various genres, artists, and record labels, ensuring a diverse selection that can cater to different preferences and target audiences. This access to a wide range of music enhances your ability to create engaging content, whether it be for videos, podcasts, live streams, or any other digital platform.
• Royalty Payments- Obtaining an online music license ensures that the creators and rights holders of the music you use receive appropriate royalties for their work. Royalty payments are crucial for sustaining the music industry and supporting artists, musicians, and composers. By obtaining a license, you contribute to a fair and ethical ecosystem, allowing artists to continue creating and sharing their music.
• Flexibility and Convenience- Online music licenses provide flexibility and convenience in the digital landscape. They allow you to seamlessly integrate music into your digital content without having to negotiate individual agreements with multiple copyright holders. The licensing process is streamlined, making it easier for content creators, businesses, and platforms to comply with legal requirements while accessing a vast library of music.
• Enhanced Reputation and Professionalism- Having an online music license adds credibility and professionalism to your work. It demonstrates that you value intellectual property rights and are committed to ethical practices in the digital space. This can be particularly important for businesses and organizations that use music as part of their branding, advertising, or promotional strategies. A licensed music catalog ensures that your content stands out and resonates with your audience, reinforcing a positive brand image.
• Customization and Personalization – Online music licenses often come with options for customization and personalization. This means that you can adapt music to suit your specific requirements, such as by shortening or extending tracks, adjusting tempos, or creating loops. This flexibility allows you to align the music more precisely with your content, enhancing its impact and engagement.
• Collaboration and Remixing- An online music license can also facilitate collaboration and remixing opportunities. Licensed music can serve as a foundation for new creative endeavors, such as remixes, covers, and mash-ups. It encourages artists, DJs, and producers to experiment, collaborate, and build upon existing works while respecting the rights of the original creators.

Documents Necessary to obtain Music License in India

The following documents are necessary to apply for a music license in India:

• Personal information, including name and address
• Information about the business
• A complete list of the musical genres that will be played or utilized
• If it is a company, the certificate of incorporation, MOA, and AOA; if it is an LLP, the certificate of incorporation.
• Aadhar Card and PAN Card
• GST registration certificate
• Utility bills

Procedure of getting Online Music License in India

The following is the procedure of getting Online Music License in India:

• Check Out the Official Website- The applicant for registering a music license in India must go to the official website. This will be the PPL for the use of previously recorded music or the IPRS for any kind of live or public performance. You can access the official website at https://www.iprs.org/ and PPL. https://www.pplindia.org/. 
• Choose Category- The applicant must choose the appropriate music license category after visiting the licensing organization’s official website.
• Fill up the necessary Information- As soon as the applicant has provided all relevant information, including their name, address, and contact information, email address, and GST, they should create an online account on the websites or portals of these organizations. Once the necessary information has been provided, create an online ID and password.

The information must be given in accordance with the legislation if the applicant is requesting “Music Works and Accompanying Literary Works within the premises.” The candidate is required to submit the following details: –

• Name of the Premises 
• Premises’ Registered Address.
• Contact information, including email.
• Details on the Services using the music license.
• Details of Public Performance.
• PAN, TAN, and GST numbers.
• Additionally, information regarding the charge associated with the assigned license must be provided.

After submitting these documents, the next step is to carefully read the Terms and Conditions.

• Reading the General Terms and Conditions (Tariff) – The applicant must click on the Tariff link to view the cost of each music license service if they need information about payments. Any user who has such a license is required to pay the required fee and any applicable taxes.
• Verification Online- The applicant will receive an email, an SMS, and the OTP (One Time Password) after properly submitting the application online.
• Online Mode of Payment- After the application has been verified, all remaining payments for the government should be paid online via payment gateways. The online receipt will be delivered through email or SMS.
• Grant of a Certificate- The licensing authorities will send an applicant an Introduction Letter after the applicant has successfully registered, which suggests that the applicant has registered.

Applicable Music License Fees in India

The Music License specifies the terms of use, the length of the license, and the percentage of royalties that will be paid to the copyright holders. The copyright society collects music license fees and distributes them to the copyright owners. The following elements determine the costs for a music license: –

• What sort to place or location is being used to perform the song,
• The duration for which the restaurant or shop plays music,
• How many songs are played in the restaurant or shop,
• The size of the space where the music is playing,
• The nature of the applicant’s business

The prices (/royalty rates) for a music license, however, are Rs. 10,000 per annum for metro/major cities and Rs. 5,000 per annum for non-Metro cities when one is obtained from IPRS for streaming a live performance at your restaurant/store.

The kind of events held at the restaurant or store determines a variety of tariff plans; the minimum royalty price for the public performance of music at stores is Rs. 2500 per 5k sq. ft. While the royalty or license payments for the music license obtained from ISRA would be set at a minimum of Rs 3,650 per year.

Penalty for non compliance with the Indian Music Licensing Norms

When a music license granted by PPL is not paid for, the applicant is eligible to pay interest at a rate of 18% per year with a penalty of up to Rs 2 lacs, whereas when a music license granted by IPRS is not paid for, the applicant is eligible for an interest rate of 30% per year.

According to Section 63 of the Copyright Act, 1957 anyone who violates copyright or other rights is liable for the following:

• Six-month sentence that might last up to three years, and
• The offender is responsible for paying a fine of at least 50,000 rupees and up to 2 lakh rupees.

According to Section 63, anyone who violates the copyright or other rights is responsible for the following:

• Imprisonment for a term of at least one year, but not more than three years,
• A fine of at least one lakh rupees and up to two lakh rupees may be imposed.

Conclusion

In conclusion, online music licenses are vital for the fair and legal distribution of music on digital platforms in India. They protect the rights of musicians and copyright holders, ensuring that they receive appropriate compensation for their creative endeavors. By obtaining the necessary licenses, online music platforms contribute to the growth and sustainability of the music industry while providing users with a wide range of musical content to enjoy.

With regard to Copyright Registration, Legal Window has a team of professionals that can offer you the greatest support, prompt delivery, and a guarantee of the highest level of customer satisfaction. For Copyright Registration, contact us or email at admin@legalwindow.in.