Music License in India – Benefits, Types and Procedure

It is always refreshing to let your customers listen to some good music when you are dining out with their family and friends. You make various arrangements to entertain your customers by playing some retro music or calling over a famous rock band at your restaurant. However, you cannot make these arrangements without getting permissions from the government.

Therefore, you must obtain a Music License if you own a restaurant or any other food business and you play music of any kind inside the premises of your business.

What is a Music License?

As per the Copyright Act, ‘ musical work[1]’ means a work consisting of music and includes any graphical notation of such work but does not include any words or any action intended to be sung, spoken or performed with the music.” Therefore, a license required for authorizing, validating and protecting such musical work is called as a Music License. You require a music license when you play or perform a musical work at a public place or for business purposes.

Why do you need a Music License for playing music in a Restaurant?

The purpose of issuing the music license is to protect the rights of the composers, songwriters, and publishers.

Categories of Music Licenses

There is a variety of categories under which one can get a music license in India.

Such categories given under the IPRS are as follows:

• Music License in India for Public Performance
  

1. Event performance at premises
   
2. Multiplex and Shopping Plaza, IT Parks, Arcades, etc.
   
3. Pubs and Disco
   
4. Hotels, lodges, Guest rooms, resorts, clubs, restaurants, holiday homes, and boarding and lodging premises.
   
5. Banquets halls and auditoriums
   
6. Amusement park
   
7. Service-oriented Premises
   
8. Malls
   
9. Publications
   
10. Transportation services
    
11. Waiting premises
    
12. Sports
    

• Music License for Television and Radio
  

1. Radio broadcast
   
2. Television broadcast through satellite
   
3. Community Radio Broadcast
   

Music License for Physical Medium/ Streaming/ Over the Top (OTT)

1. Karaoke service on the internet.
   
2. Interactive music Streaming services on the internet
   
3. Used for Sound recording on Electronic Digital Medium
   
4. Non-Interactive Music streaming services on the internet
   
5. Utilization of music by Cinematography films on Electronic Digital Medium through downloading, renting, Streaming, sale through a physical medium
   

• Music License for Caller Ring Back Tone (CRBT) or Ringtone
  

Used as a Ring tone or caller back tone

• Music License for Commercial Purposes
  

Use of Sound or Music in Corporate videos, Advertisement, or audio and promotional videos.

• Licensing forms for Music License
  

1. Live performance
   
2. General Licensing form
   

Types of Music License

Following types of music license are allotted to the artist for their creations:

• Sync License
  

Under this method, music already created is synced with some visual media. A broad range of users such as TV commercials, advertising agencies, film studios, etc. holds music license.

• Mechanical License
  

The purpose of this license is to make artists’ creation available to the general public in the creation of CDs, publication of music online or any other form of distribution. The artist having copyrights of their work is paid for the agreement signed by them to allow the distribution or recreation of their original work. A mechanical license is needed even for making a slight change in original components such as remix, adding own lyrics, changing anything of the original composition, etc.

• Master License
  

The Master license is complex than other licenses and is issued in conjunction with sync license. This license allows the holder of such license to use the pre-recorded version of the song in any audiovisual project but doesn't allow re-recording the song.

• Public Performance License
  

This license is the most common form of a license issued for broadcasting an artist's copyrighted work. This license is obtained by the businesses playing music in their jukebox or any kind of public-performance such as concerts.

Who issues Music License?

The music license is issued either by a registered Copyright Society or by Indian Performing Rights Society in India. The type of music license depends on whether the restaurant/ bar/ café is playing pre-recorded music or hold live performances.

Phonographic Performance Limited (PPL) grants music license when you play pre-recorded music at the premises of your food business. Furthermore, any of the following forms can be used to play pre-recorded music in the restaurant;

• Gramophone Records
  
• CDs
  
• Music Cassettes
  
• Radio
  
• TV
  
• Any Audiovisual media
  

On the other hand, you need a license from the Indian Performing Rights Society (IPRS) when you conduct live performances from singers, live band, or concert at your business premises.

Pre-requirements of obtaining a Music License

You also need to pay attention to these details before applying for obtaining a Music License for your restaurant;

• Audible music range
  
• The area in square meter up to which the music is audible
  
• The number of seats in a restaurant, café or other dining areas
  
• You need to specify the areas where music is audible such as restaurant/cafe dining areas, bars or kitchens
  
• Types of devices, you are going to use to play music such as radio, CDs, TV etc.
  

Fees of Music license

The fee of the music license from PPL is based upon the following factors;

• The type of place
  
• Number of hours
  
• Number of songs played
  
• The capacity of the venue
  
• The type of food business
  

Furthermore, if you conduct live performances at your business, you would need to apply for a music license from the IPRS. Generally, the fee for the license is Rs.1.50/sq. Feet. Additionally, the minimum royalty under their tariff is Rs.50, 000, etc. you need to check the tariff scheme based on the type of activity carried out at your business.

Documents required

You need to submit these documents along with the application to get your music license;

• Personal details, like name, nationality, address, etc.
  
• Information about the business you commence
  
• However, in case your business is an LLP, you have to submit the certificate of Incorporation
  
• List of the music you will play
  
• GST registration certificate, if required
  
• PAN Card
  
• Address proof such as Electricity bill, Driver’s License, Voter ID Card, etc.
  

Registration Procedure to get Music License in India

• Start the procedure to get a music license by selecting the category or type for the music license, i.e., in which type an applicant wants to get his music license.
  
• The creation of an account is done online on the official website of IPR. Start with selecting the type of license and then complete the necessary details such as the name of applicant, address & contact details of an applicant, Email-id, GST, password, and user-id for login credentials.
  
• On completion of the application, online verification is done through mobile OTP verification.
  
• Once the verification is done, online application is completed by payment of government fees online through payment gateways after which the online receipt will be sent through SMS or E-mail.
  
• After the successful registration, the IPRS license issue the Introduction Letter to an applicant that implies the registration of the applicant with the IPRS database.
  

Offences and penalties

Restaurants that plays pre-recorded music or holds live performances of any kind must obtain a Music License. Furthermore, any entity or businesses who do not register with the respective Copyright Society or do any activity defined in Section 51 of are liable for punishment under Section 63 and 63 A of the Copyright Act[2].

As per section 63 of the Copyright Act, any person who infringes the copyrights or other rights is liable for a penalty as follows;

• Imprisonment for a period which is not less than six months which may be extended to three years
  
• With a fine, which is not less than Fifty Thousand Rupees which can be extended to two lakh rupees
  

Also, under section 63 A of the Copyright Act any person or entity who infringes the copyrights or any other rights and is a repetitive lawbreaker is liable for punishment as follows;

• Jail term for a period which is not less than one year and which may be extended to three years
  
• Also, with a fine, which is not less than One Lakh Rupees and can be extended to Two Lakh Rupees
  

Benefits of getting a Music License

There are numerous benefits of obtaining a Music license in India. These benefits or advantages are as follows;

• Artists use the Music license to show their talent to the world legally
  
• The Music license helps enhance the popularity of the song or event of such artist
  
• Also, obtaining a music license ensures the artist or creator of the musical work that their work will not be stolen, duplicated or repeated without their permission
  
• It is a kind of Intellectual Property Right; thus, it secures your work in every aspect
  
• It is a good earning source for the artist as she/ he can sell their work without any problem
  

FAQs

Q. What licenses does PPL issue?

A: Radio Broadcast license for usage of members’ repertoire to Broadcasters on their Terrestrial radio stations, Community radio stations and National public radio stations.

B: Public Performance licenses to venues and establishments for the usage of members' sound recordings for Background Music and in Events.

Q. What is Public Performance?

“Public Performance” refers to the playing of music (sound recordings) by any premises/establishments where the communication of these sound recordings is to the public (multiple individuals) and not for personal consumption. This usage can be at, but not limited to hotels, discotheques, clubs, lounges, pubs, shops, stores, malls, salons, hospitals, offices, amusement parks, buses, taxis, aircraft or any form of transportation, which use sound recordings on a regular basis. In addition, playing recorded music at events, shows, parties, social functions, with or without DJs, also falls under the purview of Public Performance.

Q. Who can obtain Music License?

Any business who wants to play pre-recorded music in their premises should acquire music license to avoid any forfeit. Business unit can be a hotel, restaurant, pubs, events, malls, cinema halls, sports events, product launch, aircrafts or any other place where music is played.

Q. What are the different types of Music License?

• Sync License
  
• Mechanical License
  
• Master License
  
• Public Performance License
  

For more information on this visit www.taxaj.com

Posted by Pooja

Team Taxaj