[cr-india] Community Radio and the Copyright (Amendment) Act 2012

ram bhat ram at maraa.in
Thu Jun 20 02:15:03 CDT 2013

Dear Sajan,

When the Registrar was still inviting comments from public and stakeholders
late last year, Maraa has sent a note on this issue on behalf of Community
Radio Forum.
The full text of the note can be accessed here -
Unfortunately, looks like those comments were not considered.

I agree that CRF should now take this matter directly to the Registrar, and
perhaps reiterate these points to him.



On Thu, Jun 20, 2013 at 11:34 AM, sajan venniyoor <venniyoor at gmail.com>wrote:

> The Copyright (Amendment) Act 2012<http://copyright.gov.in/Documents/CRACT_AMNDMNT_2012.pdf>has been notified. No surprises there, but they've updated the 1957 Act and
> liberalized several provisions.
> As far as radio broadcasting is concerned, it puts the responsibility of
> fixing the rate of royalty for radio broadcasting on the Copyright Board.
> 31D. (2) The broadcasting organisation shall give prior notice, in such
> manner as may be prescribed, of its intention to broadcast the work stating
> the duration and territorial coverage of the broadcast, and shall pay to
> the owner of rights in each work royalties in the manner and at the rate
> fixed by the Copyright Board.
> (3) The rates of royalty for radio broadcasting shall be different from
> television broadcasting and the Copyright Board shall fix separate rates
> for radio broadcasting and television broadcasting.
> (4) In fixing the manner and the rate of royalty under sub-section (2),
> the Copyright Board may require the broadcasting organisation to pay an
> advance to the owners of rights.
> The Copyright Board, by its 25 Aug 2010 Order, has already fixed the music
> royalty rate for FM radio at 2% of net ad revenue *(see operative part of
> judgment below). *As you can see, it doesn't specify commercial FM,
> though the case was about royalty to be paid by commercial broadcasters.
> 30.27    Accordingly, in exercise of powers conferred under section
> 31(1)(b) of the Copyright Act, 1957, the Copyright Board hereby directs the
> Registrar of Copyrights to grant to the complainants separate licences  for
> communicating the work recorded in sound recordings in the repertoire,
> present and future, of the respondent to the public by broadcast on revenue
> sharing basis subject to the following terms and conditions:
> (a)        2% of net advertisement earnings of each FM radio station
> accruing from the radio business only for that radio station shall be set
> apart  by  each complainant for pro rata distribution of compensation to
> all music providers including the respondent herein in proportion to the
> music provided by the respective music providers and broadcast by the
> complainant.  Complainant shall be deemed to be a music provider for the
> music provided by it or received by it free of cost and broadcast.  For
> arriving at “net advertisement earnings”, all Government and municipal
> taxes paid, if any, and commission paid towards the procurement of such
> advertisements to the extent of 15% of such advertisement earnings shall be
> excluded;
> CR stations have a case for demanding a similar rate of music royalty
> instead of the extortionate Rs.2 lakhs per year we pay now. (In flagrant
> disregard of the Copyright Board Order, the descendants of Somali pirates
> who apparently run copyright societies are still demanding "Rs.2,400/- per
> Needle Hour or 20% of net advertising revenue, whichever is higher" from
> commercial FM).
> In fact, if we go by the Copyright Board Order, CR stations would need to
> earn Rs.1 crore per year through advertising (after taxes and 15%
> commission) in order to pay Rs.2 lakhs as music royalty.
> We should take this case directly to the Registrar of Copyrights (and the
> Copyright Board) rather than to MIB, whose role in resolving the copyright
> issue for private FM has been less than stellar.
> warm regards,
> Sajan
> Join the Community Radio Forum. For membership details, please go to
> www.crforum.in
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