Licences, Compulsory Licence, Copyright Societies and the Copyright Board — Intellectual Property Rights II Notes

Licences, Compulsory Licence, Copyright Societies and the Copyright Board

Suppose an author dies and his heirs refuse to reprint his only book, or set an impossible price — society loses a work it needs. The law does not let a copyright owner hold the public to ransom: through the compulsory licence it can force a licence on fair terms. Copyright, in other words, is a monopoly with a public-interest safety valve.

Voluntary, compulsory and statutory licences — and the collecting societies

A. Voluntary licence — s.30

The owner may licence any of his rights to anyone. It must be in writing, signed by the owner or his agent. It may be exclusive or non-exclusive, and for the whole or part of the term.

B. Compulsory licence — ss.31, 31A

A compulsory licence is a licence granted by the Appellate Board (formerly the Copyright Board) against the owner’s wishes, in the public interest.

s.31 — works withheld from the public. If the owner of a published work has refused to republish or to allow performance, or has refused to allow communication to the public on reasonable terms, the Board (on complaint) may direct the Registrar to grant a licence on terms it fixes.
s.31A — unpublished or anonymous works whose author is dead/unknown/untraceable — any person may apply for a licence to publish.
s.31B — for the benefit of persons with disabilities.
s.31C — cover versions (statutory licence to make a fresh recording of a song already recorded, on paying royalties).
s.31D — statutory licence for broadcasting literary/musical works and sound recordings, on paying royalties fixed by the Board.

The licence can be revoked if the licensee fails to comply with its terms or the grounds cease to exist.

C. Copyright societies — s.33

Individual authors cannot police every use of their songs. Copyright societies are collective bodies, registered under s.33, which licence works on behalf of many owners, collect royalties, and distribute them. They must be registered with the Central Government and function under its supervision (s.33–36A). Examples: IPRS (music/lyrics), PPL (sound recordings).

D. The Copyright Board / Appellate Board — s.11 (history)

Originally, s.11 created a Copyright Board to adjudicate copyright disputes, fix royalties, and grant compulsory licences.
The Finance Act 2017 merged the Copyright Board into the Intellectual Property Appellate Board (IPAB).
The Tribunals Reforms Act 2021 abolished IPAB; its functions now vest in the Commercial Courts / High Courts.

Section 31(1): where the owner of copyright in a published work has refused to allow republication or communication to the public on terms the complainant considers reasonable, the Board may, after inquiry, “direct the Registrar of Copyrights to grant to the complainant a licence to republish the work … subject to payment … of such compensation … as the Board may determine.”

In Simple Terms: A voluntary licence is given willingly; a compulsory licence is imposed by the Board when an owner unreasonably blocks the public; a statutory licence (cover versions, broadcasting) lets anyone use the work on paying fixed royalties. Copyright societies do the collecting; the Board (now the Commercial Court) sets the terms.

🧩 WORKED EXAMPLE — owner refuses to republish a needed textbook

Facts. The only publisher of a prescribed textbook refuses to reprint it and rejects all reasonable offers, so students cannot get it.

Rule. s.31 — where a published work is withheld from the public on unreasonable terms, the Board may grant a compulsory licence to republish, fixing the royalty.

Apply. The work is published, is being withheld, and the applicant’s terms are reasonable. The public interest in access is engaged.

Conclusion. The Board may direct the Registrar to grant a compulsory licence to republish, on paying the royalty it fixes; the licence is revocable for non-compliance.

⚠️ DON’T CONFUSE — compulsory licence vs statutory licence

A compulsory licence (s.31/31A) is granted case by case by the Board only after the owner has unreasonably refused — it is a remedy against a specific hold-out. A statutory licence (s.31C cover versions, s.31D broadcasting) needs no refusal and no adjudication — anyone may use the work by simply complying with the section and paying the prescribed royalty. Do NOT write that a broadcaster must first prove the owner refused: for s.31D it does not.

flowchart TD
    ROOT["Licences under the Act"]:::root
    ROOT --> A["Voluntary (s.30): owner grants willingly"]:::leaf
    ROOT --> B["Compulsory (s.31/31A): Board imposes after unreasonable refusal"]:::leaf
    ROOT --> C["Statutory (s.31C/31D): anyone may use on paying fixed royalty"]:::leaf
    ROOT --> D["Copyright societies (s.33): collect + distribute royalties"]:::leaf
    classDef root fill:#FFF8DC,stroke:#000,stroke-width:1px,color:#000;
    classDef leaf fill:#E6F3FF,stroke:#1E3A8A,color:#000;
    linkStyle default stroke:#888,stroke-width:1px;

Case Laws

Entertainment Network (India) Ltd. v Super Cassette Industries (2008) — compulsory licensing under s.31; the owner’s monopoly is subject to the public interest.
Music Choice India v Phonographic Performance Ltd. (2009) — role and licensing function of copyright societies.

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