Novex Communications well recognized as an exclusive commercial distributor for broadcasters like ESPN, Star Sports, Set Discovery has added another feather in its crowded cap. The progressive low profiled company is presently the sole music licensing body for three major production houses namely Shemaroo Entertainment, Yash Raj Films and UTV Software Communications. The company has acquired 62 libraries of Punjabi music from Big Net Communication recently.

Novex Communications Private Limited vice-president - distribution Anurag Parmar who handles various bouquets of broadcastings channels, is currently focusing on acquisitions and creating new revenue stream for audio and audio-visual license across India. With more than 10 years experience in Cable and Broadcasting Industry, Parmar has been monetizing the content/ software in various form, audio, visual, satellite from existing and new markets.

In conversation with Poonam Ahuja, Parmar sheds light on Novex’s entrance into the music licence business in India with his team of experts, its anti-piracy initatives and experienced copyright team, BFW music licence controversy and its future plans to develop it into a proper stream of revenue.

Excerpts:-

Give us a brief about Novex Communications and its wide array of services?

Established in 2002, Novex Communications is a award winning satellite channel distribution company in India. Besides channel distribution, the company has established itself with successful operations in sectors of Broadcasting, Anti-Piracy& Copyrights, Public Performance License and Hospitality. It also offers extensive service covering new age platforms like DTH and IPTV. The company is exclusive distributor for broadcasters namely ESPN Software India Pvt Ltd and MSM Discovery Pvt Ltd.

When did Novex venture into the music license business and which labels are under the company?

Novex ventured into the music license business in July last year and has acquired four major music libraries since then. The company is a distributor/licensee of Shemaroo Entertainment, Yash Raj Films and UTV Software Communications and 62 libraries of Punjabi music acquired from Big Net Communication which are the sole and exclusive copyright owners of large library of movies/programs in Hindi/English and other Indian Languages. We at Novex Communications are authorized to grant licenses for use of film songs and promos at public events like hotels, restaurants, discotheques, college campus, event companies, DJs, fashion shows, cinema halls, live shows, shopping malls, banks, religious events, exhibitions, airports and any other public areas.

Throw light on the nature of partnership with Shemaroo, Yashraj and UTV? How are the revenues shared?

We have inked legal agreements with these companies where we acquire the music content outright and have excess to their growing music libraries. The arrangement has been done taking into various factors like number of software, type of software, future addition of to be produced content.

How many movies has Novex acquired under each label?

Shemaroo was the first music label whose music library we had acquired with movies including Baazi, Chachi 420, Lal Badshah,Iski Topi Uske Sarr, Raja Ki Aaeyegi Baraat, The Don and Bal Ganesh 2. In December 2010 we entered into an agreement with Yash Raj Films and currently we have its full content library of movies including Silsila, Kabhie Kabhie, Dilwale Dulhania Le Jayenge, Veer-Zaara, Dhoom: 2, Mohabbatein, Saathiya, Hum Tum, Ladies Vs Ricky Bahl, Mujhse Friendship Karoge along with the movies which shall be produced in the coming period. Recently in September last year, we also acquired music license from UTV Software Communications for movies like Pappu Can’t Dance Saala, My Friend Pinto, Saheb Biwi Aur Gangster, Delhi Belly and Chillar Party. Since all these are production house, any new movies/software owned by them will automatically come under us.

Novex has also undertaken anti-piracy & copyrights initiatives. Comment

Novex has well experienced team of legal professionals and with investigation background in anti piracy, Trademark, Patent, copyright over 20 years. The company has network of distribution and copyright protection team offices at Mumbai, Delhi, Bangalore, Hyderabad, Pune and Kolkata. Whenever there is breach of copyright our anti-piracy team acts immediately, but one of our greatest initiatives was during the World Cup matches last year. Novex on behalf of Yash Raj Films (YRF) had lodged an FIR against ICC, BCCI and MCA officials for copyright infringement, as songs from movies like Band Baaja Baraat and Chakde India, produced by Yashraj Films were played during the World Cup matches without permission. The matter will be sorted out amicably. Currently, the company is in negotiation with owners of IPL and such new formats sporting events for marketing the licences.

Any tie-ups with regional music labels?

We have recently signed an agreement with Big Net Communications and obtained Public Performance Licence rights for their 62 libraries of Punjabi music. We are now trying to get Punjabi movie library and are working on the same.  Since our distribution is spread over the entire country, we are currently processing offers of language music to add to extend the library with regional flavor.

Has Novex sketched any marketing campaigns?

We have taken up lot of awareness campaigns and the Tie up with strong brand has its own strength. We are planning our strategy to give a new directions to this business and create a value not only for the content owners but also the customers who are the end users.

The Delhi High Court issued an injunction order against the organizers of Bangalore Fashion Week for playing music or videos, owing to their inability to procure adequate licenses from Phonographic Performance Ltd.  According to the organizers, since their music requirement during the gala was limited, they didn’t want to pay higher fees amounting to lakhs of rupees to IPRS and Phonographic Performance Limited, instead they have paid to Novex Communications. Explain in detail about your role in the BWF?

In case of BFW, Novex Communications had officially marketed and granted music licenses for movies and songs to Dream Merchants (the event management company of BWF) for using only those songs which are under us. We had given the company an authorized letter that they have the music rights for our songs, and Novex takes the responsibility if somebody comes with contrary letters and claims. But later on it so happened that PPL filed a legal suite against them. Our submission is that we have got the agreements with the three music companies with authorization letter that we have the sole license of these movies and songs. Before the show, Dream Merchants had clarified that they will use only those songs which are administered under Novex Communications and not under PPL.  There is no brief beyond this.

Does Novex see itself as a competitor to the giant PPL?

I totally agree to the fact that PPL is huge, we at Novex Communications are looking at good small popular libraries which are very effective. We have got our content in advance and are paying for obtaining that content and if someone has any issues they can always discuss with us. It is very simple and clear that they are doing the business for their content and we are doing it for the content we have, so there is no competition.

What are Novex’s plans for the year ahead?

Novex is very serious about this business as we know there is a lot of revenue in the music licence business. Our vision is to expand our libraries to at least 1000 movies in a period of two years and client level of content user 20,000. We have targeted acquiring rights from as many as 15A and 16B category music companies. Our teams of experts in acquisition are in advance stages of negotiation to acquire music rights of the best popular banners including music album. Our current focus is in acquiring English contents as there is lot of requirement. We are also looking a acquiring audio and visual content like Live concerts, HD content, Mobile content and any new age content.

Novex wants to change the present scenario of a single player approach and introduce rationalized tariff to enhance the revenue by effectively managing the rights of broadcast and public use of recorded music. We want to ensure accountability to the owners and build trust and confidence which in turn will ensure developing of proper stream of revenue.