MUMBAI: The radio industry never had any spite towards music companies. The passage of the Copyright Amendments Bill in the Rajya Sabha on Friday, 19th and in the Lok Sabha on Tuesday 22nd is not a “victory” for the radio industry – unless the music industry wants to see it that way. The Amendments however undeniably restore balance and equity to a one-sided relationship that has existed between the two industries for decades.

Yes decades. I remember before we first started broadcasting in October 2001 (in Indore), we had a nightmarish time trying to get licenses from PPL (which apparently represented the “entire” music industry but we later realized that it did not) and IPRS (the other body that apparently represented artists, but we later realized represented only the music companies). The two bodies were clearly monopolistic in their conduct. Their attitude even then was of “take it or leave it”. Their constant retort was “don’t play our music if you don’t agree to our terms” or some such thing. Their threats were omnipresent and real. Not much later after we started broadcasting, the biggest music company filed a criminal case against the Managing Director of ENIL (Mirchi) and the company, thus equating him and the company with petty roadside pirates. And when it came to fighting the actual pirates – those that supposedly took away more than half of the music industry’s revenues – the music industry did a lot of talk but very little action. When Mirchi made an offer of using its air time to educate people against piracy, not one label turned up to take the offer. Mirchi ran the “say no to nakli” campaign nonetheless. So let’s be clear. The music industry was clearly behaving like a bully.

The radio industry was nascent; the music biggies had been around for decades. The radio broadcasters were saddled with a very unfavorable license regime with the Government of India, which made the radio business more expensive than even the much larger TV and newspaper businesses. What were the radio broadcasters expected to do? Build their brands, grow the category, develop listenership, work towards profitability and recovery of shareholder investments…..or fight expensive legal battles? At the Times of India group, we have always taken a principled stand of not yielding to unfair pressure tactics…..we waged a lone battle protecting the interests of the entire radio industry. We also invested in building our brand; not surprising then that in our first five years, we carried an accumulated loss of Rs 102 crores.

The music industry’s monopolistic tendencies continued non-stop. After signing a voluntary license, IPRS wanted to back out of it within a few years. Their reason to do so? They had granted radio an “infancy discount” for the first seven years. But since the Government of India changed its license fee formula and made it based on “revenue share” rather than the onerous “fixed license fee” (bringing relief to broadcasters), IPRS thought it was a good time to withdraw the infancy discount. What was the justification for this? Had the radio industry suddenly become “developed”? Data even today shows that the penetration of the radio industry is small; its share of the advertising pie only 4.5% compared to 10-12% in many other larger markets. But why should IPRS have bothered? They had an opportunity to seize and they did it.

It’s not as if IPRS was representing the artists as they were supposed to. We were shocked to learn that some of the most renowned names in the music industry – led by the indefatigable Javed Akhtar – were being deprived of any royalties at all. Worse, a canard was spread that the radio guys were not paying royalties to IPRS and that’s why the artists were not getting their dues. The artists didn’t know whom to trust. It was left to us to prove our credentials. Just imagine this – we were paying through our noses, our investments sinking lower with every day of broadcasting, and yet we were being painted as the villains. While most of my music artist friends understand us better now, a suspicion continues to lurk. This has become an example of a modern day “divide and rule”.

Thankfully all that has ended now with the amendments being passed by both houses of Parliament. Now, artists will get their rightful dues. The work they produce will earn them royalties for their lifetime and beyond. Our prolific creators will finally be on par with their global compatriots. It’s interesting that the Beatles still make millions every year in royalties. In contrast, our artists live in penury; some of them leading lives of utter misery. Every now and then, one reads stories of old time artists being found on the streets of Mumbai; some begging; many struggling to make ends meet. What kind of environment did India provide to its creative talent? In which country were the most brilliant innovators treated in this cavalier manner when their work was “bought out” by the usurious and rapacious music companies for a pittance paid upfront? Thank god, it is all over. My salute and compliments to the doyens of the music fraternity. We were always with you; we will always remain with you.

Rather than cock a snook at the music companies, I want to extend a hand of friendship. Let bygones be bygones. One who corrects his path needs to be forgiven. Let the music companies share their earnings with the creative heroes. Let the music companies work hand in hand with radio broadcasters (and TV broadcasters) in growing the music business. Let everyone prosper. Let it not be a “let me take all” attitude any longer. The music industry’s intransigent attitude has made Indian FM broadcasters not put their channels online. Let the music industry show its willingness to change by offering good internet royalty deals now. Deals that take the Indian music worldwide. Deals that make Indian music the most popular in the world. Deals that don’t smack of a bossy attitude; but of a friendly handshake. Let the music industry take one step forward; I promise the radio industry will take three steps.

I have often said that music companies and radio broadcasters are two sides of the same coin. Radio promotes music. That is why music companies pester radio broadcasters to play more and more of their songs on maximum possible rotates. They insert “minimum guarantee” clauses. They demand better “placement” of songs (in prime times). And yet they go to the court and say that radio kills music. Let this farce stop. Undoubtedly, radio also benefits from music. It is willing to pay royalties for this, even though the relationship between radio and music companies is such that no one should pay anyone. Radio is willing to honour the Copyright Board judgment on royalties.

Let the legal battles stop. Let’s get to work. We have a world of opportunity ahead of us. If we all work together, there can be no stopping us. But if we choose to litigate, we will waste the next two decades in the courts. The choice is for the music industry to make – cooperate or litigate????