Commerce Ministry Weighs Regulating Broadcasters' Music Royalties Under Section 31D

The Commerce Ministry is weighing whether to regulate the royalties that broadcasters pay to use copyrighted music, Storyboard18 reported on 12 October 2026. The question sits under Section 31D of the Copyright Act, 1957, which lets a broadcasting organisation use published literary works, musical works and sound recordings without first agreeing terms with each rights owner, provided it follows the conditions the section sets. The royalty for that use is set through the statutory process rather than by individual contracts.

Broadcasters want government-set rates for certainty, while labels say market forces should decide. The ministry's review follows a stakeholder consultation with broadcasters and music rights holders. The consultation paper that would open the debate had not been released as of 12 October, and the report said it was expected soon.

How the Statutory Licence Works

Section 31D allows any broadcasting organisation to communicate a published literary or musical work, or a sound recording, to the public by broadcast or by performance. A statutory licence is granted by law rather than by contract, and the section applies only to works that have already been published.

The first condition is notice. The broadcaster must give prior notice of its intention to broadcast, stating the duration and territorial coverage of the broadcast. The second is royalty. It must pay royalties to the owner of rights in each work, at the rate fixed for the purpose.

The section requires separate rates for radio broadcasting and television broadcasting. Broadcasters must also announce the names of the authors and principal performers with the broadcast, except when the work is communicated by way of performance, and keep records and books of account. No alteration that is not technically necessary may be made, other than shortening, without the consent of the owners of rights.

A court may require the broadcaster to pay an advance.

Storyboard18 says the section was introduced through the Copyright (Amendment) Act, 2012.

Who Sets the Royalty Rate, and Where Accounts Differ

Under the section, royalties are payable at a rate fixed by a body, rather than one agreed between the parties. The sources do not all name the same body.

A legal text summary and LiveLaw's report of the Bombay High Court judgment both name the Commercial Court as the body that fixes the rate. Bar & Bench's report of the judgment, and S.S. Rana & Co.'s account, name the Appellate Board instead.

Khurana & Khurana says the Copyright Board originally fixed royalty rates, and that the Finance Act, 2017 substituted the Appellate Board for it. S.S. Rana & Co. makes the same point, describing the Appellate Board as the body that fixes rates.

Bar & Bench reports that the Appellate Board lacks jurisdiction to fix rates for internet broadcasting, and that no royalty rates have been prescribed for internet broadcasting. The same report says royalty rates must be fixed before a broadcaster can avail of a statutory licence under Section 31D.

The Wynk Music and Tips Industries Case

The dispute was between Tips Industries, which held the rights to a catalogue of about 25,000 sound recordings, and Wynk Music, a digital music app owned by Airtel. S.S. Rana & Co. reports that Tips had licensed those recordings to Wynk at ₹1.31 crore a year before the contract expired.

Bar & Bench reports that the court treated Wynk's streaming and download services as commercial rental of music, which requires the copyright holder's consent. It also granted an interim injunction in favour of Tips Industries.

S.S. Rana & Co. reports that the court held that Section 31D does not apply to internet streaming or downloading. Bar & Bench reports that the court kept the right to commercially rent or sell a sound recording separate from the right to communicate it to the public.

LiveLaw reports that the court confined Section 31D to traditional radio and television broadcasting, and that online music streaming platforms are not eligible for statutory licences under it. LiveLaw also reports that such platforms will have to negotiate contracts with big record companies to use their repertoire.

S.S. Rana & Co. cites the suit as Commercial Suit IP (L) No. 114 of 2018, and says the court read the section strictly. Storyboard18 dates the ruling to October 2022.

The 2016 Memorandum and Internet Broadcasting

Khurana & Khurana says a 2016 memorandum from the Department of Industrial Policy and Promotion extended the provision to internet broadcasting. S.S. Rana & Co. says the same memorandum stated that Section 31D covers internet broadcasting.

Bar & Bench reports that the Bombay High Court declined to treat the memorandum as binding, finding that it lacks a ‘statutory flavour’.

The first is the royalty rate under Section 31D, which the ministry is weighing. The second is whether internet services fall within the section at all, which the Wynk ruling answered in the negative, according to LiveLaw and Bar & Bench.

Broadcasters want government-set rates for certainty, while labels say market forces should decide.

What Broadcasters and Labels Each Argue

Broadcasters, including radio and gaming broadcasters, want the government to regulate the rates they pay for copyrighted music, Storyboard18 reports. Their stated aim is greater certainty over licensing costs and protection against arbitrary charges.

A source familiar with the developments told Storyboard18 that industry bodies, including the News Broadcasters and Digital Association and the Indian Broadcasting and Digital Foundation, have raised the issue with the government for a considerable period.

Music labels and artist organisations oppose the proposal. Storyboard18 reports that they say regulation could undermine market forces and hurt the industry's commercial interests.

They maintain that market-based pricing should determine the commercial value of music. The disagreement is over whether a government-set rate or negotiated pricing should govern what broadcasters pay for the music they use.

What Has Not Been Announced

As of 12 October 2026, the consultation paper had not been released.

Storyboard18 reports that broadcasters have argued that the statutory licensing framework should extend to digital platforms as well. Until the paper is published, the positions above are the ones reported so far.