MUMBAI: Indian Performing Rights Society (IPRS) witnessed a growth of 8 per cent in 2011-12, which is unfortunately not much of an increase for an entity which has recorded two-digit growth in the last six years. However, IPRS is eyeing 25 per cent growth in FY’2012-2013.

The company had registered 49 per cent rise in 2007-08, 51 per cent in 2008-09, 34 per cent in 2009-10 and 33 per cent in 2010-11. Last year’s fall of  25 percent, is a result of an increase in defaulters and decline in issue of licences due to Mumbai High Court Order as lot of users tried to shield themselves from taking the licences from IPRS, though the suit was purely against IPRS VS MBPL. The appeal was made and the order that stayed the judgment qua third parties.

Speaking with Radioandmusic.com, IPRS head & senior general manager-licensing, Kunal Sarin said, “Last year was not that good compared to previous years but in last five to six years we have had huge growth. This deficit was due to the users misconception about the MBPL order which had nothing to do with their usage of music in their premise, thus resulted the delay in licensing dues from some of the major clients.”

Music Broadcast Private Limited (MBPL) the company behind Radio City has been fighting the case against Indian Performing Right Society since 2006.  It had all along stated that it has been paying IPRS royalties for broadcast of sound recordings under a mistaken belief of law for nearly a decade.

In a judgment In July 2011, the Bombay High court stated that leading FM player Radio City would now have to only deal with Phonographic Performances Limited for obtaining a licence to play music on its stations, and the Indian Performing Rights Society (IPRS) cannot claim or demand royalty or licence fees for playing recorded music from it.

But Sarin highlighted that the New Copyright Amendment Bill 2012 clearly mentions that more importantly authors and composers of literary & musical works need to be paid for any utilization (the broadest sense) by way of its sound recording in any form and now even for cinematograph film (except in a cinema hall) in any form along with the assignee owners.

Post  Copyright Amendment 2012’ the Public Performance team’ acted  aggressively and ensured that there is a maximum compliance in the market. The licences went up and subsequently the revenue increased, with the help of event Licensing.

Moreover, Café Coffee Day which is in agreement with IPRS has been the latest defaulter who has failed to pay for licences. “Café Coffee Day pays us huge licence fee for the music they use at their outlets and they have been in the default list as they failed to pay but once they pay things will be sorted.” added Sarin.

Initially, Percept the organizer of Sunburn music festival in India was also reluctant to pay licence fees to IPRS for music consumed but now after an injunction order they have agreed to sign a compromise deal. Sarin further added, “Initially, they were reluctant but they came and paid the licence fee few days before the Sunburn event in Goa.

However, Mumbai has been a silver lining for IPRS this year also as the city has contributed to 90 per cent of the collection, followed by Delhi, Kolkata, Bangalore, Goa, Pune, Chennai, Hyderabad, Chandigarh and Jaipur.  He added, this financial year has been excellent in terms of the growth in the event sector, in Goa, Pune, Bangalore as well as in Delhi in the month of December’2012.