Tips Industries And Xtelify Settle Copyright Dispute Over Music Streaming

Tips Industries And Xtelify Settle Copyright Dispute Over Music Streaming

In a significant development, Tips Industries Limited and Xtelify Ltd. (formerly known as Wynk Ltd.) have reached a settlement, marking the resolution of their prolonged legal battle over Copyright issues. The latest settlement order, issued on 18th June 2024 by Justice R.I. Chagla of the Bombay High Court, signifies the final resolution of the case.

The settlement, as per the Consent Terms dated 17th June 2024, requires Xtelify Ltd. to pay INR 12 crore plus applicable taxes. This payment serves as a final settlement for Xtelify's use of Tips Industries' music repertoire from 1st September 2016 to 10th September 2020.

The parties have also agreed to abide by the judgment dated April 23, 2019, and subsequent rulings by the Bombay High Court, affirming the limitations of Section 31D of the Copyright Act regarding statutory licenses for digital streaming platforms.

The case originated from disputes over the applicability of Section 31D, which governs statutory licenses for broadcasting organizations under Indian copyright law. Tips Industries argued that Xtelify, a prominent online music streaming service, could not avail itself of these licenses for its streaming and downloading services without explicit permission. This stance was reinforced by Justice S.J. Kathawalla in his 2019 ruling, which clarified that Section 31D's scope was limited to traditional radio and television broadcasting, excluding non-linear, on-demand streaming services like those offered by Xtelify.

Subsequent judicial proceedings, including a 2023 decision by a division bench of the Bombay High Court, further solidified this interpretation, emphasizing the legislative intent behind Section 31D and the need for clarity in adapting copyright law to digital advancements. These rulings underscored the judiciary's role in safeguarding copyright holders' rights while addressing technological changes in media consumption.

The settlement between Tips Industries and Xtelify not only brings closure to their legal dispute but also sets a precedent for future copyright negotiations in India's burgeoning digital media landscape. It highlights the ongoing dialogue regarding legislative reforms to accommodate digital streaming platforms within the framework of copyright law, ensuring equitable treatment for rights holders and fostering innovation in the digital music industry.

As India's over-the-top (OTT) market continues to grow, discussions on legislative amendments to better regulate digital broadcasting are expected to gain momentum. The parliamentary recommendations to include digital broadcasters under statutory licensing reflect a proactive approach to addressing these complexities, aiming to balance the interests of copyright owners, content creators, and digital service providers.

The settlement marks a pivotal moment in India's copyright jurisprudence, emphasizing the need for legal clarity and adaptation in response to technological advancements. It reinforces the judiciary's commitment to upholding copyright protections while advocating for a robust legal framework that supports both artistic creativity and digital accessibility.