Tips Industries vs Wynk Music case: IMI welcomes court verdict

The Bombay High Court’s decision of April 23, 2019 in Tips Industries LTD vs Wynk Music LTD (Airtel) case, where the court held that internet music streaming and digital downloads are not covered under the statutory licensing provision of the Copyright Act, 1957, is in important decision for the entire recorded music industry in India.

The decision will ensure fairness of licensing of digital services in India in the future and will benefit the industry as well as users of music. IMI, the trade body that represents the interest of the recorded music industry in India, has welcomed the verdict.

Tips Industries Ltd, a member of IMI, has sued Wynk Music which is Airtel’s internet music streaming service. Wynk had claimed the benefit of the statutory licensing provision. The court disagreed with the argument that streaming was covered under the ambit of statutory licensing provisions. In reaching this conclusion, the court examined the intention of the Parliament and the provision.

Commenting on the verdict, Blaise Fernandes, President of IMI, said, “This decision confirms IMI’s consistent stand that internet streaming services are not covered under Section 31D of the Copyright Act, 1957. As an industry, we noted the intention of our Parliament to provide involuntary licensing benefits under the Copyright Act, 1957 and are very encouraged that the hon’ble court has now clarified the intention of our lawmakers to not include streaming services under the statutory licensing scheme.”

Kumar Taurani, MD, Tips Industries Ltd, said, "This is true justice & I humbly bow in respect of the Indian judiciary. It’s been a long and trying process but we prevailed and justice was served. I'm very happy that the Indian judiciary believed in not only Tips but the whole music industry and vindicated what was right. We are not in a business to arm twist or provoke unnecessary actions onto our partners in the OTT business. But in our case in particular; Wynk was very unfair. Wynk, as an internet music streaming service, has valuations in millions. Despite that, they still refuse to pay to music labels a few crores for the music content, which is the heart of Wynk’s OTT streaming service. Without a heart, what good is a body? Until this judgement, OTT players continued to corner us.”

As per the IFPI GMR report, internet streaming in India contributes 70% of the revenues of the recorded music industry. The decision of the court is expected to boost the online music licensing business in India further.