IN THE HIGH COURT OF JUDICATURE AT MADRAS
N. Sathish Kumar, M. Jothiraman, JJ
Ashit Kukian – Appellant
Versus
South Indian Music Companies Association – Respondent
L.P.A.Nos.47, 48 and 49 of 2025 | 15, 16 and 17 of 2024
| Table of Content |
|---|
| 1. history of the copyright board orders for fm radio royalty fixation. (Para 2) |
| 2. appellants' argument: contempt does not lie for unquantified monetary decrees; execution under sec 75 is required. (Para 3 , 4 , 5 , 6) |
| 3. respondents' argument: contempt jurisdiction is maintainable alongside execution; non-payment constitutes willful disobedience. (Para 7 , 8) |
| 4. court's analysis: contempt is not a substitute for execution; royalty must be quantified before claiming willful disobedience. (Para 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23) |
COMMON JUDGMENT
N.SATHISH KUMAR, J.
These Letters Patent Appeals have been filed against separate orders, dated 31.07.2024 made in Contempt Petition Nos.2016, 2018 and 2017 of 2023 and the common order dated 26.08.2025 passed in contempt petition Nos.3238, 3239 and 3380 of 2024.
2.The facts which led to filing of these appeals are as follows:
2.1.Entertainment Network India Limited is a leading media company operates radio broadcasting stations which is also called as 'Radio Mirchi' in India. Hereinafter, Entertainment Network India Limited is called as 'ENIL' for short in this common judgment.
2.2.Phonographic Performance Limited ['PPL' for short] is a copyright society that grants license to broadcast the music. PPL has been formed by major music companies and it represents the owners of sound recordings (record labels). Sony Music T – Series, Saregama, Aaditya Music etc. are some of its members. The broadcasters like ENIL can take a single license from PPL instead of negotiating with each record label separately to use their music in their radio stations. PPL collect the license fees and then distributes royalties to its members based on the usage. The main aim of the society is to ensure that the commercial rights of record labels are not exploited without payment. As some of the music works are not covered by the PPL license, the ENIL has to approach the Copyright Board seeking for compulsory license. For broadcasting the music through radio stations, the ENIL requires license. Therefore, initially ENIL has paid PPL the amount fixed by it to broadcast the music. But some music owned by Super Cassettes Industries Ltd., could not broadcast by ENIL as it was not covered by the license given by the PPL. Though ENIL tried to get a license, it was not fructified. So ENIL could not broadcast the copyrighted music without a valid license. Therefore without any other option, the ENIL had invoked the provisions of the Copyright Act, 1957 i.e., under section 31(1)(b) seeking for a compulsory licensing fee.
2.3.Music Broadcast Private Limited ['MBPL' in short] is also a radio operator which broadcast songs through their radio stations. To broadcast the music, one has to get license form copyright holders. As PPL is the corporate society for sound recordings, the MBPL approached PPL to get license, but PPL demanded Rs.2400/- per needle hour or 20% of net advertisement revenue. Needle hour means actual time of music broadcast excluding advertisement, talk etc., Since the demand is exorbitant, the MBPL along with other radio stations approached Copyright Board by filing applications under Section 31(1)(b) of the Copyright Act 1957 seeking for compulsory license.
2.4.Under section 31(1)(b), if a Copyright owner refuses to grant a license for broadcasting of such work on reasonable terms, the Copyright Board can order license on terms it considers just and equitable including royalty rate. The Copyright Board vide order dated 19.11.2002 passed an order by granting a standard royalty rate at the rate of Rs.1200/- per needle hour during prime time. Further for 12 normal hours, 60% of standard rate, for 8 lean(night) hours, 25% of standard rate and respondents also directed to furnish a security / bank guarantee of Rs.20,00,000/- per radio station to PPL. The said direction can be in operation for 2 years and the same shall be reconsidered again during September – October 20
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