Adv. Vidhi Gandhi
Understanding the Legal Foundations of Music Usage and Rights Management
This is Part 1 of a 10 part series on Music Licensing in India
In an era where music is no longer confined to cassettes or concerts, but lives in everything from reels to playlists, the act of using music is no longer just creative, it is legal. Whether you’re a singer distributing your own EP, a brand uploading a reel with background music, or a venue playing Spotify for ambience, you’re invoking copyright law, and that means: LICENSING.
Why Music Licensing matters?
As most of you know, copyright arises automatically upon the creation of the work, however, licensing is what allows that work to be legally used by others. It is the bridge between the creator’s rights and a user’s permissions. Licensing ensures creators and rights owners are compensated, while users avoid infringing the law.
More than mere paperwork, music licensing defines how value circulates in the music ecosystem, especially in a market like India, where film, independent artists, and digital platforms co-exist with minimal clarity.
Legal framework in India
India’s music licensing landscape is governed by the Copyright Act, 1957, amended most notably in 2012, which recognized stronger rights for authors and mandated royalties for them in perpetuity.
The key provisions are:
Section 14: Defines the exclusive bundle of rights in different types of works (musical, literary, sound recording)
Section 18 & 19: Assignment and scope of licenses
Section 30: Licensing by copyright owners
Sections 31-31D: Provide for statutory licensing, especially for broadcasting and digital streaming.
The rights associated with music are bifurcated into two primary categories:
- Musical Work+ Literary Work
Copyright holders: Composers and Lyricists
Rights covered: Reproduction, sale, rental, and communication to the public, adaptation, and synchronization- Section 14(a)
2. Sound Recording:
Copyright holder: Typically, the producer or label (may differ if self-published)
Rights covered: Reproduction, sale, rental, and communication to the public- Section 14(e)
Thus, when using a song, one must consider both the underlying work and the recording.
What exactly is licensed?
Every song has at least three copyrights:
- Literary work: The lyrics (usually held by the lyricist)
- Musical work: Melody or composition (Composer)
- Sound recording: The final track (Producer or label)
Types of Licenses in India
| License Type | Rights Covered | Examples |
| Mechanical License | Reproduction of musical works (physical/digital formats) | CDs, digital downloads, ringtones |
| Synchronization License | Use of music with visual media | Films, web series, YouTube videos, ads |
| Performance License | Live performance or communication to the public | Concerts, restaurants, radio |
| Broadcast License | Communication to the public via TV/radio | FM Stations, Television |
| Internet/Digital streaming License | For OTT, music apps, YouTube, etc. | Spotify, JioSaavn, Gaana |
| Background Music License | Ambient music in commercial spaces | Gyms, salons, cafe |
Each of these rights can be licensed separately. Dual license clearance (from the owner of the sound recording and the underlying musical work) is often needed.
The Licensing bodies in India- Collective Management Organizations (CMOs)
| Entity | Rights Licensed | Who can use |
| IPRS | Performance, mechanical & communication rights for literary and musical works | Broadcasters, streamers, event organizer |
| PPL | Sound recording rights | Same as above |
| ISAMRA | Performer’s rights | Optional, but relevant for live use |
| TuneCore, CD Baby, DistroKid | Distribution, digital licensing | Artists, Labels |
| Labels/Producers | Sync Rights | Brands, filmmakers, content creators |
Labels often bundle sync and sound recording rights, but not the underlying works, which remains with IPRS members.
Examples of real-world licensing scenarios
| Use Case | Rights Required | From |
| Playing music in a gym | Communication to the public, Performance | IPRS+PPL |
| Uploading a reel with background music | Platform license (if via meta), otherwise sync+sound+underlying | Platform or individual licensing |
| Live show performance | Performance license | IPRS |
| Brand campaign using song clip | Sync+underlying+sound recording | Label+IPRS |
| Streaming music on a digital platform | Statutory license (Sec. 31D) | IPRS+PPL |
Music on Social Media and UGC Platforms
The growth of UGC (User-Generated Content) platforms like Instagram and YouTube introduces new licensing models:
- Meta, YouTube, and others enter into blanket licensing agreements with distributors (e.g., TuneCore, Believe, CD Baby) and rightsholders.
- These licenses usually allow personal use and not commercial use by brands.
- Artists are paid revenue share models via their distributors or PROs (Performance Rights Organization).
Brands using trending music in ads or reels must acquire direct sync licenses from both the composer/lyricist and the sound recording owner, even if the track is “available” on Instagram’s music library.
Statutory Licensing in India
Statutory licensing is available under Sections 31, 31C, and 31D of the Copyright Act:
Section 31C: Statutory licensing for cover versions
Section 31D: Statutory licensing for broadcasting (TV and radio)
These licenses do not apply to OTT platforms or social media and must be used carefully with respect to scope.
A recent Delhi High Court decision in Tips Industries v. Wynk Music, 2019 emphasized that streaming services must enter into contractual licenses with rightsholders.
Difference between Licensing and Assignment
It is also essential to distinguish a license from an assignment:
Assignment transfers ownership, whereas license only permits usage under conditions.
Most streaming platforms operate under a statutory license (Section 31D), while sync and brand uses always require express licensing.
Final Thoughts
Music Licensing in India is fragmented but maturing. As creators demand greater transparency and platforms automate more royalties, understanding the nuances of who owns what and who can use what is no longer optional.
For artists, knowing how to license their music can mean real earnings. For brands and creators knowing how to license music can mean avoiding expensive litigation and building campaigns that are both impactful and legal.
COMING UP IN PART 2: THE ROYALTY MATH In the next part of the series, we’ll break down the royalty flow- who gets paid, how much, and by whom- across platforms like Spotify, YouTube, Instagram, and live performances. We’ll discuss real-world rates and how royalty splits occur among composers, lyricists, and producers.