Filing Of Pending Compulsory License Application Does Not Permit Copyright Infringement: Delhi High Court

Filing Of Pending Compulsory License Application Does Not Permit Copyright Infringement: Delhi High Court

Justice Mini Pushkarna of the Delhi High Court has issued an interim injunction against Al-Hamd Tradenation, prohibiting the company from using sound recordings copyrighted by Phonographic Performance Limited (PPL). Despite Al-Hamd's application for a compulsory license, which was pending approval, the court ruled that they were not entitled to use PPL's sound recordings without securing a license and paying the requisite fee.

Phonographic Performance Limited, an Indian collective rights management organization, controls the public performance rights for 317 music labels.

Phonographic Performance Limited filed a suit to prevent Al-Hamd Tradenation from infringing on its copyright to sound recordings. PPL asserted that there was an imminent threat of infringement as Al-Hamd planned to use its copyrighted sound recordings for an event at a restaurant called 'Lutyens' on Mehrauli Gurgaon Road, New Delhi, on July 14, 2024.

PPL, which holds public performance rights through assignments from various owners under Section 18 of the Copyright Act, 1957, informed Al-Hamd through the restaurant that a license was required for the use of its sound recordings. Al-Hamd, however, refused to obtain a license at the current tariff, offering to pay a lower amount and threatening to seek a compulsory license under Section 31(1)(a) of the Copyright Act, 1957. PPL maintained that the license fee was Rs. 55,440/-, while Al-Hamd was only willing to pay Rs. 16,500/-.

Aggrieved by this, PPL filed for an interim injunction against Al-Hamd in the Delhi High Court. PPL argued that Al-Hamd's unauthorized use of its copyrighted works would damage PPL's licensing activities and allow Al-Hamd to benefit from PPL's investments. In defense, Al-Hamd contended that its petition for a compulsory license was pending and that it should not be compelled to pay the fee demanded by PPL.

The High Court held that PPL had established a prima facie case, warranting interim relief to prevent Al-Hamd from exploiting or using any sound recordings copyrighted by PPL. The court emphasized that to avoid copyright infringement, Al-Hamd and any parties acting on its behalf must be restrained from using the impugned sound recordings at any premises.

After reviewing the evidence, the court concluded that the balance of convenience was in PPL's favor and that failure to protect PPL's Copyright would result in irreparable damage. Consequently, the court ordered that Al-Hamd must obtain a license from PPL and pay the required fees to use the sound recordings. In the absence of a valid license, Al-Hamd was prohibited from using the sound recordings for its event.