The court emphasized the statutory scheme under the Copyright Act and the availability of a remedy before the Copyright Board for challenging tariff fixation.

S. Muralidhar, J.

Introduction

1. The prayer in this writ petition is for a direction to the Union of India, Ministry of Human Resource Development ('HRD') to frame appropriate and objective standards towards the determination and levying of royalties of various copyrighted works administered by Phonographic Performance Limited ('PPL'), Respondent No. 3, and the Indian Performing Right Society Limited ('IPRSL'), Respondent No. 4, or any other society that may be so created by it, and the mode of enforcing and administering such royalties when so fixed. A further direction is for investigation of the books of account of PPL and IPRSL to ascertain whether they have paid their dues to the owners/authors of copyrights.

Case of the Petitioner

2. The Petitioner, Event and Entertainment Management Association ('EEMA'), is a society registered under the Societies Registration Act, 1860. It comprises of members from all over India who are engaged in the business of organizing events, functions and entertainment shows like road shows, music concerts/shows, brand promotion, dealers meet and other social events like marriages and get-togethers etc. Individual members of EEMA are stated to provide their services for organization of events and entertainment "wherein they themselves are neither hosts nor guests but act merely as service providers". It is stated that during the aforesaid events and shows, the members of EEMA, as per the instructions of their clients, host or arrange or make arrangements for playing music recorded on tapes, compact discs, DVDs and other storage devices legally available in the markets. They also arrange for performance of live music, instrumental as well as singing of literary works in the form of songs by known as well as not so known artists/performers. It is further stated that in all three categories of events, i.e. social functions, brand promotion events and purely commercial events, live or recorded music is played or performed.

3. Respondent No. 1 has registered PPL and IPRSL as copyright societies in terms of Section 33 of the Copyright Act, 1957 ('CR Act'). While PPL is registered as a copyright society for sound recordings, IPRSL is for musical and literary works. The exploitation of a sound recording implies exploitation of the underlying literary or musical work as well. One important function of the PPL and IPRSL is the business of granting license in respect of the works wherein copyright exists and to charge royalties towards the same. Accordingly, the license fee for the sound recordings on the one hand and the literary and musical works on the other have to be paid for separately by the users thereof to PPL and IPRSL respectively on behalf of their members who hold the relevant copyrights thereto. By a letter dated 15th October 1997, the HRD Ministry clarified that since the public performance of music involves mechanical rights in sound recording as well as rights of composers, performer's etc. licenses from both PPL and IPRSL have to be obtained for playing recorded music whose copyright administration vests in these two societies. EEMA contends that Respondent No. 1 has failed to exercise its jurisdiction under Section 33 CR Act to set down any objective standards and criteria for charging of royalties by PPL and IPRSL. It is stated that both the PPL and IPRSL are acting arbitrarily in fixing tariffs with no objective standards and have assumed the role of the legislature in fixing the amount of royalties at their sole discretion, the role of a law enforcer in enforcing the collection of such royalties and in taking coercive action against the members of EEMA. It is stated that demanding of royalties for playing music at social functions and events is a violation of Section 52 CR Act. It is submitted that inasmuch as Respondent No. 1 has a constitutional obligation under Article 14 of the Constitution of India not to act arbitrarily or unreasonably the same applies to copyright societie