Entertainment Network (India) Ltd. v. Super Cassette Industries Ltd.

Copyright law must balance authors’ rights with public access through regulated compulsory licensing.

Summary

This landmark judgment dealt with the issue of compulsory licensing of sound recordings and the rights of radio broadcasters. Entertainment Network (India) Ltd. (ENIL), operating FM radio channels under the brand “Radio Mirchi,” sought a compulsory licence to broadcast songs owned by Super Cassette Industries Ltd. (T-Series). The Supreme Court examined how copyright law should balance the exclusive rights of copyright owners with the public interest in dissemination of creative works.

Facts of the Case

ENIL approached T-Series for permission to broadcast its sound recordings on FM radio. T-Series demanded high royalty rates, which ENIL claimed were unreasonable and commercially unviable. ENIL then applied to the Copyright Board seeking a compulsory licence under the Copyright Act, 1957. T-Series opposed this, arguing that compulsory licensing should be used sparingly and that copyright owners have the freedom to decide how their works are exploited.

Findings / Reasoning

The Supreme Court held that compulsory licensing is an exception to the exclusive rights of copyright owners and must be exercised cautiously. However, the Court recognized that radio broadcasting serves a public function by making music accessible to a wide audience. It ruled that the Copyright Board has the authority to grant compulsory licences when refusal by the copyright owner is unreasonable and contrary to public interest. At the same time, the royalty fixed must be fair and must adequately compensate the copyright holder.

Suggestions / Observations

The judgment emphasized that copyright is not an absolute monopoly and must function in harmony with societal needs. Broadcasters must respect authors’ rights, while copyright owners should not abuse their position to block dissemination of works. Regulatory bodies were advised to adopt transparent and balanced approaches when fixing royalty rates.

Judgment & Date

The Supreme Court upheld the principle of compulsory licensing for radio broadcasting, subject to fair compensation to copyright owners, and laid down guidelines for its application.

Judgment Date: 16 May 2008