Licensing a song from the music label isn’t the whole story. The Calcutta High Court held that using songs for caller tunes and ringtones also needs a licence from IPRS — because the lyricists’ and composers’ rights in the underlying works are independent of the sound-recording owner’s.
Why it matters
The 2012 Copyright amendment was a milestone — addressing a lacuna over lyricists’ and composers’ rights once their works are incorporated into films and sound recordings. But uncertainties over interpretation remained, and Vodafone Idea Limited v. The Indian Performing Right Society Limited put them to the test.
A song is many copyrights
A single song carries multiple copyrights: lyrics (literary work, owned by the lyricist), composition (musical work, owned by the composer), and the sound recording (owned by the producer/label). Using the song may need permission from more than one rights holder — exactly what was missing here.
The dispute
Vodafone had licensing agreements with Saregama to exploit songs via Value-Added Services (caller tunes, ringtones). IPRS contended Vodafone also needed a licence from it and to pay royalties, because exploiting the music uses not just the sound recording but the lyrics and composition. Facing competing claims, Vodafone filed an interpleader suit; the single judge sided with IPRS (independent rights); Vodafone appealed to the Division Bench.
The arguments
Vodafone: it had a valid Saregama licence and paid royalties; any royalty-sharing dispute is between Saregama and IPRS; a sound recording is a separate copyright, so the producer can license it without a separate licence from the underlying-works owners; royalties are shared only when the underlying works are exploited separately or to create another recording; and IPRS was merely a collecting agent.
IPRS: Vodafone had licences only for sound recordings, not the underlying works; Saregama had assigned the literary/musical works to IPRS (1993 and 2017); so neither Saregama nor any label could license those works to third parties; and the Vodafone–Saregama Master Agreement (2014) had expired in 2019.
The decision
The Division Bench handled it in three parts:
- Can IPRS claim royalties? Yes — IPRS was entitled to claim royalties from Vodafone.
- Could Saregama authorise use of the underlying works? No — the literary/musical works must be assigned individually, which Saregama couldn’t grant.
- Could Vodafone exploit the underlying works? Not without IPRS’s permission.
The Court upheld the single bench.
The lesson
The ruling brings much-needed clarity on licensing and royalty obligations for commercial exploitation of music — and underscores the importance of copyright audits and obtaining licences not only from labels but also from the owners of the underlying literary and musical works where required.
The takeaways
- A sound-recording licence isn’t enough — the underlying works need their own licence.
- Authors’ royalty rights are independent — reaffirmed post-2012 amendment.
- Labels can’t license assigned underlying works — those must be assigned individually (here, to IPRS).
- Do a copyright audit — clear rights from labels and the works’ owners before exploiting music.
Frequently asked questions
Do I need a licence from IPRS as well as the music label? Often yes — using a song commercially engages the lyrics and composition (owned by lyricists/composers, administered by IPRS) as well as the sound recording, so a label licence alone may be insufficient.
Can the producer license a song without the underlying-works owners? No — the Calcutta HC held the literary and musical works must be licensed by their owner (here IPRS), independent of the sound-recording owner.
What did Vodafone Idea v. IPRS decide? That IPRS could claim royalties from Vodafone, Saregama couldn’t authorise use of the underlying works, and Vodafone couldn’t exploit them without IPRS’s permission.
What’s the practical lesson for music users? Conduct copyright audits and obtain licences from both the label and the owners of the underlying literary and musical works where required.
Useful official resources
- The Copyright Act, 1957
- Copyright Office, India