Statutory Licensing for Broadcasting Under Section 31D: India's Compulsory Music Licence

Indian copyright includes a mechanism that goes further than most jurisdictions — a statutory licence allowing broadcasting organisations to use copyrighted music on payment of royalties fixed by the Copyright Board (now the Commercial Court following the 2021 Tribunal reforms). The provision is Section 31D of the Copyright Act, 1957, added by the 2012 Amendment. It permits radio and television broadcasters to communicate to the public any published literary or musical work or sound recording, on payment of royalties at rates fixed by the appropriate authority. The provision has been litigated extensively — most prominently in the Tips Industries v. Wynk Music dispute over its applicability to internet streaming — and remains one of the more controversial structural elements of Indian copyright law.

This guide covers the Section 31D framework, the royalty-rate fixation mechanism, the major Indian music-industry disputes, and the practical implications for broadcasters, music labels, internet streaming services and music creators.

The Section 31D framework

Section 31D(1) provides: 'Any broadcasting organisation desirous of communicating to the public by way of a broadcast or by way of performance of a literary or musical work and sound recording which has already been published may do so subject to the provisions of this section.'

The provision contains several conditions:

• The broadcasting organisation must give prior notice to the copyright owner
• The notice must specify the duration and territorial coverage of the broadcast
• The broadcasting organisation must pay royalties as fixed by the Commercial Court (formerly Copyright Board)
• Records must be maintained of works broadcast
• The royalty rate is fixed for radio and television separately

The Section 31D licence is statutory — the copyright owner cannot refuse it as long as the conditions are met. The owner can challenge the royalty rate, the conditions of use, or the applicability of the section to a particular broadcast, but cannot deny the licence outright.

The label wants the rate higher. The broadcaster wants it lower. The court sets it.

The 2020 Tips v. Wynk Music decision

The Bombay High Court in Tips Industries Limited v. Wynk Music Limited and Anr., decided in April 2019, addressed a critical question: does Section 31D apply to internet streaming services? Wynk had relied on Section 31D to argue it could use Tips' music catalogue on payment of statutory royalty.

The Court held that Section 31D does not apply to internet streaming services. The reasoning:

• Section 31D was drafted in the context of radio and television broadcasting
• 'Broadcasting organisation' as understood at the time of the 2012 Amendment did not include internet streaming services
• Internet streaming requires direct licensing from copyright owners, not statutory licensing
• The decision protected music labels from compulsory licensing for the rapidly-growing streaming market

The decision narrowed Section 31D substantially. Radio and TV broadcasters remain within the statutory licence framework; streaming services must negotiate direct licences with labels and authors.

Royalty-rate fixation

Section 31D royalty rates are fixed by the Commercial Court following the 2021 abolition of the Copyright Board. The rate-fixation process involves:

• The broadcasting organisation files a petition seeking rate fixation
• Music labels and rights-holder organisations file evidence on appropriate rates
• The Court hears expert evidence on industry economics, comparable rates in other jurisdictions, and the value of the music to the broadcasting business
• The Court issues a reasoned order fixing rates separately for radio and television

Indian radio rates have been periodically revised. The framework provides predictability but also produces continuing disputes as the music industry and broadcasting industry contest the appropriate balance.

What labels and authors receive

Section 31D royalties are distributed to:

• The owner of the sound recording (typically the music label) — for the sound-recording use
• The authors and composers of the underlying literary and musical works — through IPRS distribution
• The performers — through ISRA distribution under Section 38A performer rights

The 2012 Amendment significantly strengthened the rights of authors and composers — the statutory royalty for their separate works cannot be assigned away, even by contract. The royalty share is collected by IPRS and distributed to the underlying authors and composers regardless of contractual arrangements between the label and the authors.

How the framework affects different parties

For different stakeholders:

• FM radio broadcasters — operate under Section 31D, pay statutory royalty at rates set by the Court, can use any published music subject to notice and record-keeping
• Television broadcasters — similar framework, distinct rate for TV use
• Internet streaming services (Spotify India, JioSaavn, Wynk, Apple Music India) — outside Section 31D after the Tips decision; must negotiate direct licences with labels
• Music labels — receive royalty from radio/TV under the framework; negotiate direct deals with streaming services
• Authors and composers — entitled to statutory royalty share that cannot be assigned away, collected through IPRS

The 31D notice procedure

A broadcaster relying on Section 31D must:

1. Send written prior notice to the copyright owner identifying the work, duration, and territorial coverage
2. Pay or undertake to pay royalties at the prescribed rates
3. Maintain records of works broadcast in the prescribed manner
4. File annual statements as may be required by the Court

Failure to comply with the notice or record-keeping requirements removes the Section 31D protection — the broadcaster becomes liable for ordinary copyright infringement.

The takeaway

Section 31D is one of the more distinctive elements of Indian copyright law — a statutory licensing framework that permits radio and television broadcasters to use copyrighted music on payment of court-fixed royalties. The framework was significantly narrowed by the Tips v. Wynk decision excluding internet streaming. For broadcasters, the provision provides operational certainty within its scope; for music labels, it sets a floor on royalty rates; for authors and composers, it preserves a statutory royalty share that cannot be assigned away. The framework continues to evolve through litigation and legislative review — anyone operating in Indian music distribution should track the developments. IPForte's IP litigation practice handles Section 31D matters and music-licensing disputes.