Section 31 of the Copyright Act permits compulsory licensing if a copyright owner refuses unreasonable terms, thereby balancing creator rights with public interest.

1. Leave granted.

2INTRODUCTION
Interpretation of S.31 of the Copyright Act, 1957 (for the sake of brevity, hereinafter referred to as, 'the Act') is involved in these appeals.

3We may notice the factual matrix of the matter.

4BACKGROUND FACTS
First respondent is one of the leading music companies engaged in the production and / or acquisition of rights in sound recordings. It has copyright over a series of cassettes and CDs commonly known as T - series. It has copyrights in cinematographic films and sound recordings. Appellant M/s. Entertainment Network (India) Ltd. (ENIL) broadcasts under the brand name "Radio Mirchi". It is a leading FM radio broadcaster. Disputes and differences arose between Bennett Coleman & Co. Ltd., the holding company of the first respondent and Phonographic Performance Ltd. (PPL) as regards the playing of the songs of which copyrights belongs to the first respondent in their FM radio network. Appellant is a company which holds licence for running FM radio stations in various cities across India.

5Free to Air private FM Radio Broadcasting is a recent phenomenon in India and the basic content of any radio station, presently, is only sound recordings, i.e., songs.

6Disputes and differences having arisen between the parties in regard to broadcast of the songs in respect whereof the first respondent holds a copyright as owner thereof or by reason of purchase of the copyright belonging to others.

7BACKGROUND FACTS
The radio industry was revolutionized by the Government of India as in October 1999 for its first phase of granting license for private FM, broadcasting channel, tenders were invited.

8Appellant herein was awarded the license for running a private FM broadcasting service in 12 cities on payment of a hefty license fee. Several other bidders were also granted licenses. Respondent, however, was not a member of the appellant - society. It was found to have been using the broadcasting songs in respect whereof Super Cassettes Industry Limited (SCIL) had an ownership over the copyright. It was a member of the copyright society being Phonographic Performance Ltd. (PPL). Indisputably, there had been an infringement of the copyright of Super Cassettes. Allegedly, appellant was under the belief that it was a part of PPL and whereupon the music belonging to the repertoire of SCIL was played during the period from October 2001 to May, 2002 in its stations at Indore and Ahmedabad. Royalty was paid by ENIL to PPL at the rate of Rs. 400/- per needle hour pursuant to the order passed by the Calcutta High Court dated 28.9.2001. Attempts were made to obtain a licence from SCIL when ENIL came to know that it was not a part of the copyright society PPL. Negotiations failed between the parties.

9A suit was filed before the Delhi High Court for restraining ENIL from playing and broadcasting the music belonging to SCIL on any of the Radio Stations belonging to ENIL.

10COMMUNICATIONS BETWEEN THE PARTIES
We may notice relevant parts of some communications between the parties. Super Cassettes through its lawyer by a notice dated 21.1.2002, in view of the said infringement of his copyright called upon ENIL, inter alia, to give an undertaking that it shall not broadcast the sound records of Super Cassettes through its Radio Station without a valid licence and payment of royalty (the terms of which were mutually arrived at). Super Cassettes again by a notice dated 2.4.2002 through its Advocate called upon ENIL to: "a) immediately desist from broadcasting Sound Recording(s) of Super Cassettes clients through its Radio Station; b) Tender an unconditional apology for the illegal broadcast of Sound Recordings of Super Cassettes clients in past; c) give an undertaking that it shall not broadcast the Sound Recordings of Super Cassettes clients through its Radio Station without a valid licence and payment of royalty (the terms of which can be mutually arrived at), and d) pay a sum of Rs. 50,00,000.00 (Fifty lacs only) as liquidated