Music License In India - IPRS and PPL License

Purpose and Importance of Music License

Let's discuss the purpose and importance of Music License in India:

Legal Bridge Between Creators and Users

A Music License acts as a formal agreement that connects music creators (composers, singers, and producers) with users (such as business owners and event organizers). It legalizes the use of copyrighted music in public, ensuring that the artist's rights are respected.

Ensures Fair Payment to Creators

By requiring users to obtain a license before playing music in public, it ensures that creators are compensated for their creative work. This promotes a fair and rewarding environment for the music industry to grow and thrive.

Applicable in Various Public Spaces

The need for a Music License is not limited to restaurants and bars—it extends to malls, gyms, hotels, cinema halls, aircraft, and public or private events. Any space where music is played for public consumption or business benefit must comply.

Defines Scope and Mode of Music Usage

The license clearly outlines the type of music usage allowed—whether it's pre-recorded, streamed, or live performance. It also specifies the duration and premises where the music can be played, preventing misuse beyond the agreed terms.

Protects Users from Legal and Reputational Risks

Having a valid music license helps businesses avoid lawsuits, fines, and criminal penalties under the Copyright Act. It also protects the brand image by demonstrating ethical practices and legal compliance in using intellectual property.

Activities that require a Music License

The following are the activities that require a Music License:

Public Performances in Commercial Venues

Any public performance of music at commercial locations like malls, restaurants, banquet halls, theatres, or events requires a valid Music License. These venues often use music to enhance the customer experience, but without proper licensing, such usage can attract penalties and legal actions under the Copyright Act, 1957.

Background Music in Retail Stores and Venues

Playing pre-recorded background music in retail outlets, gyms, salons, or waiting lounges—even through a radio, TV, or speaker system—constitutes public performance. Regardless of whether the music is loud or soft, a license is required because it contributes to the overall business ambiance and customer retention.

Live Band Performances at Cafes and Pubs

Organizing live music performances or hiring bands for entertainment at cafes, bars, lounges, or social events falls under commercial use of music. These performances must be licensed by relevant copyright societies like the Indian Performing Right Society (IPRS) to protect both the artist’s rights and the host's legal compliance.

Use of Music in Advertisements and Caller Tunes

The use of songs or soundtracks in advertisements—be it on television, radio, or digital media—as well as caller tunes or ringtones, also requires a Music License. Since music in advertising directly contributes to brand recognition and consumer influence, it is treated as commercial exploitation of copyrighted work.

Streaming Music for Events, Online or Offline

Whether interactive (on-demand) or non-interactive (curated), streaming music during product launches, exhibitions, corporate events, or sports events also mandates a music license. This applies to both online platforms and offline venues, as such use is considered a public broadcast with commercial implications.

Authorities that issue Music License in India

Music played at commercial premises must be authorized by dedicated copyright societies. Phonographic Performance Limited (PPL) and Indian Performing Right Society (IPRS) are two key bodies in India authorized under the Copyright Act, 1957. They ensure fair use of musical works and protect the rights of artists and copyright owners. Both PPL and IPRS function to guarantee that creators, performers, and producers receive their due royalties. Their structured fee models vary based on venue type, audience size, and mode of usage—whether it's background music, DJ nights, or live performances. This regulated system helps sustain the music industry.

No music—be it pre-recorded or live—should be played in public or commercial setups like cafes, gyms, malls, events, or exhibitions without licenses from PPL and/or IPRS. Unauthorized usage can lead to copyright infringement cases, heavy fines, and even court action against the violator. TV channels, radio stations, online streaming apps, and event organizers are also obligated to get the proper music license. Since these platforms use music as part of content delivery or entertainment, they fall under commercial usage, thereby requiring official clearance from copyright societies.

Phonographic Performance Limited (PPL)

1. Licensing for Pre-recorded Music

PPL specializes in managing sound recording rights and grants licenses for using pre-recorded music in commercial spaces. This includes not just playing songs in public venues but also usage in videos, online events, and advertisements where recorded music is featured.

2. Coverage for Businesses and DJs

The organization serves a wide array of license seekers—restaurants, bars, cafes, event organizers, DJs, FM stations, and even mobile event vans. Whether it’s a calm lounge atmosphere or a DJ night, PPL ensures the music used is properly licensed.

3. Legal Protection and Music Catalog Access

PPL licenses allow businesses to legally access a large collection of Indian and international tracks. This shields them from the risk of copyright lawsuits and shows their respect for artists' rights. The license also grants peace of mind with full compliance under Indian IP laws.

4. Royalty Distribution to Artists

By acquiring a PPL license, the business ensures that the original producers and copyright owners of the tracks used are compensated. The fee collected is systematically distributed as royalty, supporting the creators who make music possible.

Indian Performing Right Society (IPRS)

1. Licensing for Live Music Performances

IPRS is responsible for licensing live performances such as concerts, band shows, club events, and karaoke nights. Any place that hosts live music, whether small cafés or large stadiums, needs IPRS approval to stay legally compliant.

2. Royalty Collection for Composers and Lyricists

Unlike PPL which focuses on sound recordings, IPRS represents the interests of music composers, lyricists, and publishers. When their compositions are performed or communicated to the public, IPRS ensures royalty payments flow back to the rightful creators.

3. Applicable to Digital and Broadcast Platforms

IPRS licenses are also essential for using music on TV shows, streaming platforms, radio stations, mobile ringtones, and websites. It helps content creators, broadcasters, and app developers use music responsibly while honoring copyrights.

4. Critical to Uphold Copyright Laws

Without a valid IPRS license, live performances or public singing of copyrighted compositions can result in legal penalties. IPRS plays a key role in maintaining a balanced and lawful music industry where creativity is protected and rewarded.

Types of Music Licenses

The following are the different types of Music Licenses in India:

1. Sync License (Synchronization License)

A Sync License is essential when music is used in conjunction with visuals, such as in movies, TV shows, advertisements, or YouTube videos. It allows the synchronization of a musical composition with moving images. This license must be obtained from the copyright owner of the composition (typically the music publisher). Without a sync license, using music in any audiovisual production is considered copyright infringement.

2. Mechanical License

A Mechanical License is required when music is reproduced and distributed in a physical or digital format, such as CDs, vinyl, digital downloads, or streaming platforms. This license ensures that songwriters and music publishers are compensated when their compositions are copied and distributed. It’s commonly obtained by record labels, digital platforms, and producers for album releases or online music availability.

3. Master License

A Master License permits the use of a specific sound recording in commercial projects such as films, commercials, or video games. This license is usually obtained from the owner of the master recording, often a record label. While it allows usage of the original version of the song, it does not permit alterations or re-recordings. To use the full song legally, both master and sync licenses are often required together.

4. Public Performance License

A Public Performance License is the most common license needed for playing music in public spaces like restaurants, malls, gyms, concerts, radio stations, or parties. Whether the music is live or recorded, this license is mandatory for legal public broadcasting. It is issued by copyright societies such as PPL or IPRS in India and ensures that performers and creators receive their rightful royalties.

5. Print Rights License

A Print Rights License allows the user to reproduce or print the musical notation or sheet music of a song. This is especially relevant for music teachers, schools, choirs, or publishers who print songbooks or music guides. It ensures that the composer or publisher is paid whenever their musical work is printed or commercially reproduced.

6. Theatrical License

A Theatrical License is necessary when copyrighted musical works are used in live dramatic performances such as plays, musicals, or stage shows. This license grants permission to perform a complete musical piece or segment before a live audience. It is commonly acquired by theatre groups, schools, and event producers to lawfully perform copyrighted content on stage.

Requirements for Obtaining a Music License

The following are the requirements for obtaining a Music License:

1. Area Where Music is Audible (in Square Meters)

When applying for a Music License, businesses must clearly specify the total area in square meters where music will be heard. This includes indoor and outdoor spaces where customers or visitors can access the music. Licensing authorities use this information to assess the coverage and calculate an appropriate licensing fee. Larger areas usually attract higher royalties due to wider audience exposure.

2. Seating Capacity of the Venue

The number of seats or capacity of the venue must also be disclosed, as it indicates the size of the potential audience. Whether it's a small café with 20 seats or a banquet hall with 500 seats, the licensing cost varies accordingly. The greater the seating capacity, the higher the commercial benefit, which justifies a proportionate royalty fee under the Copyright Act.

3. Nature and Use of the Music-Playing Space

Applicants must specify the type of spaces within their premises where music will be played—such as the main dining area, bar section, washrooms, waiting areas, or even the kitchen. This allows the licensing body to understand how music is integrated into the business operations and assess whether it contributes directly to the customer experience or ambiance.

4. List of Music Playback Devices

The applicant must provide a detailed list of all devices used to play music, including CD players, televisions, speakers, audio systems, mobile apps, or streaming platforms. This is important in determining the nature of music usage (recorded, broadcast, or live) and helps in assigning the correct license type, such as PPL for recorded music or IPRS for live music usage.

5. Helps Determine Royalty Category and Fee Structure

All the above information collectively enables the licensing authorities like PPL and IPRS to categorize the license correctly and apply a fair and regulated royalty fee structure. This ensures transparency and helps businesses avoid overpaying or facing compliance issues due to incorrect declarations.

If you’re unsure how to compile or declare these details, Compliance Calendar LLP can help you through the entire Music License application process.
Email: info@ccoffice.in
Call/WhatsApp: +91 9988424211

Documents Required for Music License

The following are some important documents required for Music License:

1. Personal ID Proof (PAN and Aadhaar Card)

The applicant must provide valid identity proof, such as a PAN card and Aadhaar card, to verify their legal identity. This is essential for accountability and to establish the authorized individual responsible for the music license application.

2. Business Incorporation Documents

For companies or LLPs, documents like the Certificate of Incorporation, Memorandum of Association (MOA), and Articles of Association (AOA) are required. These establish the legal existence and nature of the business seeking the license.

3. GST Registration Certificate

A copy of the GST registration certificate is required to confirm the business’s compliance with taxation laws. This also helps licensing authorities assess the commercial scale and category of the applicant.

4. Utility Bills (Electricity/Water)

Recent utility bills serve as proof that the business premises are operational. They confirm the location and help cross-verify the address provided in the license application.

5. List of Music Genres or Formats Used

A description or list of the music genres (e.g., pop, classical, EDM) or formats (e.g., recorded, live, streaming) must be submitted. This helps classify the license type and determine applicable royalty structures.

Procedure to get Music License in India

The followings are the steps of the registration process for getting a music license:

1. Choose the Appropriate Licensing Body (PPL or IPRS)

Begin by visiting the official websites—pplindia.org for recorded music or iprs.org for live performances and musical compositions. Select the licensing body based on your music usage type. Choosing the correct platform ensures you apply for the right license, avoiding delays or rejections.

2. Create a User Account

Register by creating an account on the respective portal. You’ll need to provide details such as the applicant’s name, business address, email ID, mobile number, and GST number. This information helps verify the applicant’s credentials and links the license to a valid business entity.

3. Select the License Category

Based on your intended use, choose the relevant license type—public performance, live show, DJ event, or streaming. This step is crucial because each category has a specific fee and coverage area. Selecting the correct license ensures you comply with the scope of music usage.

4. Provide Detailed Business Information

Enter details such as the name of your premises, full address, size of the area (in sq. meters), number of seats, and devices used (TVs, speakers, etc.). These details help the licensing authority determine the applicable fee structure and royalty classification.

5. Verify Application and Pay Fee Online

After completing the application, you’ll receive a One-Time Password (OTP) on your registered email or mobile number for verification. Once verified, you can proceed to pay the license fee through the secure online payment gateway provided on the portal.

6. Receive License Certificate and Introduction Letter

Once the application is processed and approved, you will receive a formal License Certificate along with an Introduction Letter from the licensing body. These documents serve as proof of legal authorization to use music publicly for commercial purposes.

If you need professional help with the music license application, Compliance Calendar LLP can guide you through the entire process.

Email: info@ccoffice.in

Call/WhatsApp: +91 9988424211

Benefits of having a Music License in India

The following are the benefits of having a Music License in India:

Ensures Legal Compliance and Avoids Penalties

A valid Music License ensures that the business complies with the Copyright Act, 1957, protecting it from legal risks. Without it, playing music publicly could lead to heavy fines, lawsuits, or even imprisonment, depending on the extent of infringement. Licensing safeguards your business from such complications.

Enables Live Performances to Boost Business

Licensed venues such as restaurants, pubs, or cafes can legally host live music performances, DJ nights, or karaoke events. These attractions not only entertain customers but also increase footfall and revenue, giving the establishment a unique edge in the competitive hospitality market.

Enhances Customer Experience and Brand Reputation

Good music adds vibrancy to the environment and enhances the overall customer experience. Licensed use of music creates a welcoming atmosphere, improving brand image and customer retention. Over time, it contributes to building a positive reputation in the industry.

Supports Artists Through Royalty Payments

By obtaining a music license, businesses contribute to a sustainable music ecosystem. The fees paid are distributed as royalties to composers, artists, and producers, ensuring they are rewarded for their creative work. This encourages the continuous production of high-quality, original music.

Demonstrates Business Credibility and Ethics

Having a music license reflects your company’s ethical standards and legal awareness. It shows that your business respects intellectual property laws and supports fair practices. This enhances trust among customers, stakeholders, and collaborators, especially in service and hospitality industries.

Penalties for Not Having a Music License

The following are the penalties of not having a Music License in India:

Penalties Imposed by PPL for Default

Businesses that fail to obtain or renew a PPL license may be charged an annual interest of 18% on unpaid license fees. In addition to interest, defaulters may face penalties of up to ?2 lakh, depending on the nature and duration of the violation. This makes non-compliance financially burdensome.

IPRS Penalties for Late or Non-Payment

IPRS defaulters are liable to pay a 30% annual interest on delayed or unpaid license fees. The organization takes copyright protection seriously and imposes these penalties to ensure timely payments and continued support for artists and composers. Ignoring IPRS compliance can escalate into legal disputes.

Imprisonment Under Section 63 of the Copyright Act

According to Section 63 of the Copyright Act, 1957, playing copyrighted music without a license can result in imprisonment ranging from 6 months to 3 years. This is applicable in cases of willful infringement and highlights the criminal nature of unauthorized music use.

Monetary Fines for Copyright Infringement

Apart from imprisonment, violators may also be fined between ?50,000 to ?2,00,000 for unauthorized use of music. This penalty is legally enforceable and serves as compensation to the copyright holder for unauthorized commercial exploitation of their work.

Importance of Compliance with Copyright Laws

These penalties are not just punitive—they serve as a deterrent to protect the rights of music creators. The stringent provisions under Indian law reflect the importance of upholding copyright and ensuring ethical use of creative content in commercial settings.