India reports a fragile music industry, highly vulnerable to copyright violations
India’s music publishing industry faces significant challenges, particularly in copyright compliance, according to a report released by EY in December 2023.
While the industry has witnessed growth in revenues, reaching Rs8.84 billion (US$106.7 million) for the period of 2022 to 2023 from Rs3.4 billion (US$41 million) for 2019 to 2020, issues such as weak copyright compliance, lack of awareness of music rights, and legal ambiguities hinder its progress, resulting in a lower global revenue ranking compared to other countries.
The report highlights a copyright compliance rate of only 1.2 percent, indicating a pressing need for government intervention to address tax issues related to musical works. Bhavya Verma, a junior associate at Khurana & Khurana in New Delhi, emphasized the importance of exempting consideration received for live performances from service tax or Goods and Services Tax and scrutinizing royalties received for public performances through organizations like the Indian Performing Right Society.
Verma also stressed the need for legislative clarity, particularly concerning the applicability of Section 31 D of the Copyrights Amendment Act 2012 to online music streaming services. She suggested amending the legislation to explicitly include internet broadcasting within the scope of statutory licensing to ensure equal treatment for all forms of broadcast.
Additionally, addressing the disparity in royalty compensation in radio broadcasting is crucial. Verma proposed facilitating transparent and equitable royalty negotiations, reassessing the statutory royalty rate, and tackling revenue leakages from opaque accounting practices to create a more equitable ecosystem for music creators.
Furthermore, uncertainty regarding separate royalties for publishing rights complicates matters, highlighting the necessity for improved infrastructure and technological interventions.
Verma emphasized the importance of strengthening enforcement mechanisms, promoting awareness of copyright laws, and implementing support schemes for artists during crises like pandemics.
In conclusion, Verma believes that concerted efforts by the Indian government to address these challenges will significantly enhance copyright compliance in the music industry, ensuring a sustainable creative landscape for the future.
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