MUMBAI: Expressing a stand against the proposed amendment to the Indian Copyright act, the various labels and bodies that make up the Indian music industry submitted their recommendations to the standing committee early this week 

While some music labels like T-Series, Saregama and music bodies like SIMCA submitted individual recommendations, other labels like Tips, Sony Music and Universal banked on the response submitted by IMI (the Indian Music Industry)  

HRD minster Kapil Sibal had proposed the amendment bill to comply with international treaties and with the intention of ascertaining the rights of composers, authors and directors in the realm of copyright. However, the music labels believe the law must address the particular conditions of the industry and society it applies to  

Expressing his apprehensions, T-Series VP digital content Neeraj Kalyan says, The proposed changes, if enacted as law, will have a number of serious and perhaps unintended consequences to the serious detriment of the Indian entertainment industry as a whole, including all its stakeholders  The proposed amendments suffer from fundamental conceptual flaws which need to be rectified....

Apart from conceptual flaws, the bodies are concerned about the infirmities in the language of the proposed changes. The ambiguities in the act will lead to endless litigations in the industry, foresees Saregama CEO Apurv Nagpal. "The need of the hour is to fix these ambiguities or it might necessitate further amendment," he says.

Nagpal believes that the hastily drafted amendment is influenced by affluent artists without considering the opinions of the entire industry. We have testimonials of some artists from  Bengal who would prefer opting for a one time payment system rather than royalty share from sales....

Some of the recommendations by the music labels include:

Saregama' Nagpal refers to the state of past contracts and the future use of past contracts questioning the proposal to abolish the practice of hiring artists on contract basis 

The bill creates confusion regarding the status of existing agreements / assignment deeds between lyricists, composers and members of SIMCA, adds joint secretary Rajesh Dhupad. The bill unfairly attempts to alter the rights already vested with and the above stakeholders for the past 70 years and tries to arbitrarily intervene with existing revenue arrangements... 

Kalyan refers to the clause on unprecedented restrictions on assignment of copyright. The proposed amendment with the stated objective of protecting the rights of authors and composers imposes an unheard regime of restrictions on their freedom to assign copyright with exception to copyright society and their legal heirs. This will seriously jeopardize the bargaining power of the artistes and will also make them bear the risk of commercial failure of their compositions...  

Non-assignment of copyright for future and unknown technology:

Nagpal views this provision as illogical and impractical as it restricts producers from monetising through newer modes of music consumption. Dhupad explains, If there is a new media / mode for exploitation of the rights, the composers cannot assign their rights to the producer without assigning such rights to their own copyright society thus compelling the producer to deal only with the copyright society and not the individual music composer / lyricists....

This provision can be relooked into by classifying between physical and non-physical property as new modes of consumption comes at the expense of a existing mode,... asserts Nagpal 

Proposed Statutory License For Radio Broadcasting Of Literary Works, Musical Works And Sound Recordings: 

Neeraj Kalyan: The radio industry is working in tandem with copyright owners on freely negotiated involuntary licenses. The proposed amendment will impose a state controlled regime, this will not only take away the concept of copyright and exclusivity but will also make it unviable for many copyright owners which may again seriously jeopardize the commercial interest of the copyright owners and create market imbalances and affect free trade in the economy....

Apurv Nagpal: The provisions regarding statutory licensing has to be looked upon as most FM stations are commercial ones and the decision to decide the rate of commercial usage should be left on the parties involved....

Rajesh Dhupad: This provision is a serious inroad into the right of the producer / sound recording label to enter into private agreements with broadcasting companies. There is no rationale for distinction between the broadcast of the music on one hand and telecast of the cinematograph film on the other, especially since these are allied fields of activity and interdependent on each other... 

Only authors to be members of copyright society should include author and/or owners to be members of copyright for owners to monetise from the content.
 

�Exceptions to the rule that copyright created in the course of employment to be the property of the employer for films. While protecting the legal principal of ownership in copyright works of the employer in a employer-employee relationship in the Print and other industries, the bill attempts to create an aberration for the film industry by denying the employer to be the first owner of copyright works created in the film in course of employment, while it continues to permit press/magazines etc's to claim ownership of works created for them by their employees in course of employment.

�Restrictions on Assignment Of Copyright: Proposed Section 19(8) & 19(9) The Composers and Authors will be restricted to assign their works to a royalty collecting societies and further, they cannot assign their rights/license their rights on terms contrary to those at which the same has been assign to a rights collecting society. Firstly, the rights collecting society does not promote and market composer or his works and under present law the composer/author can freely exploit his rights. There will be an embargo on such freedom by the proposed bill. Secondly, the author and composer cannot assign the rights of work in the film for exploitation outside the film. This will greatly reduce the commercial value of author's creativity and will reduce their income. These proposed changes are neither desired nor practical or advisable.

�Compulsory License May Also Be Granted To Any Person Other Than The Seeker Of Such Compulsory License: Under law the copyright works are to be traded freely on voluntary negotiations. This is how all broadcasting (radio and television) industry is working. Now arbitrary powers are being given to copyright board to grant a compulsory license to anyone it deems fit, that may be person other than the person who seeks a compulsory license which may seriously jeopardize the commercial interest of the copyright owners and create market imbalances and affect free trade in the economy.

�Section 52 of the copyright act – granting safe harbor to internet infringements. Sweeping exemption is being proposed in defense of websites, softwares and internet technologies that thrive on infringement of copyright. These exemptions across the world are qualified and not complete, however, in the manner proposed in the copyright act will make unlawful sharing and download of copyright material exempted from legal action. This will far reaching consequence and should be looked into with greater care.

�Clause 2 of the Bill introduces the concept of commercial rental. This exclusion in favour of non-profit libraries can be misconstrued or abused by internet databases and pirates who many a time provide free download and free streaming using a lawfully acquired copy as the base. If the concept of commercial rental is introduced, it will be easy for a pirate to take up the plea that he is only providing for streaming / download / distribution copies of the music for free. This will legalise the innumerable streaming and download websites that do not charge a penny from the public and yet provide access to music.

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