What is IPRS License? Importance, Procedure, Document, Penalty for IPRS License

Introduction

Music publishers, lyricists, composers, and music owners make up the Indian Performing Right Society (IPRS), a group that represents artists. The purpose of IPRS is to collect royalties from music consumers on behalf of its members—music authors, composers, and publishers—and to split those royalties among the members after subtracting administrative costs. In this article information on “What is IPRS License?”, Application Procedure for IPRS License Online, and Penalty for violation of IPRS License is mentioned.

What is IPRS License?

The IPRS(Indian Performing Right Society) license is a legal agreement between IPRS and a user that allows the user to use copyrighted music for public performances or broadcasts. It ensures fair compensation for creators when their music is used in places like restaurants, clubs, radio, TV, and digital platforms. The license enables businesses and individuals to use copyrighted music legally while supporting the creators and rights holders.

The IPRS was founded on August 23, 1969. It is a non-profit organization registered under the Companies Act of 1956 (now Act of 2013). IPRS is authorized to grant licenses for using music and literary works under the Copyright Act of 1957. Being registered under the Copyright Act is necessary to show legal ownership of copyright. IPRS owns the copyrights through assignment deeds with its members who have assigned their rights to the society. As the copyright owner, IPRS issues licenses according to Section 30 of the Copyright Act. The fees for the license obtained through IPRS vary depending on the location and usage of the music composition. For example, on-premises tariffs are based on the square footage of establishments like shopping centers, restaurants, cafes, and bars.

Importance of IPRS License.

The IPRS License holds significant importance in the music industry for the following reasons:

1. Fair Compensation: The license ensures that songwriters, composers, and music publishers receive fair compensation for their creative works when used in public performances or broadcasts.

2. Protection of Creative Rights: It safeguards the rights of music creators by providing legal protection against unauthorized use or exploitation of their copyrighted music.

3. Encourages Creativity: The IPRS License encourages artists to continue creating music by providing them with a means to earn a livelihood from their work. This fosters a thriving music industry and promotes artistic innovation.

4. Legal Compliance: By obtaining the IPRS License, businesses and individuals can legally use copyrighted music in various commercial or public settings, such as restaurants, clubs, radio stations, TV broadcasts, and digital platforms, without facing legal consequences.

5. Supports the Music Industry: The license contributes to the sustainability of the music industry by ensuring that creators and copyright holders are fairly compensated. This financial support enables them to invest in their artistry, production, and future musical endeavors.

6. Promotes Respect for Intellectual Property: The IPRS License promotes a culture of respect for intellectual property rights. By obtaining the license, users demonstrate their commitment to honoring and valuing the creative contributions of music artists.

7. Streamlines Licensing Processes: The IPRS License simplifies the licensing process for businesses, making it easier to obtain legal permission to use copyrighted music. This reduces the administrative burden and facilitates compliance with copyright regulations.

Overall, the IPRS License plays a vital role in maintaining a fair and balanced music industry ecosystem, where creators are rewarded for their talent and efforts while allowing businesses and individuals to enjoy and utilize music legally.

Penalty for an IPRS License Violation

The penalties for failing to complete the requisite Registration Process according to the Copyright Society and continuing to conduct Performances under Section 51 of the Copyright Act, 1957, are stated in Sections 63 and 63 A of the Copyright Act, 1957, and are as follows:

• A minimum of six months and a maximum of three years in jail for the offender.
• The offender shall be subject to a fine that must be at least INR 50,000 and may not exceed INR 2,000,000.

If it is determined that the offence is repeatable, then

• A minimum of one year in prison and a maximum of three years for the offender.
• The offender shall be subject to a minimum fine of INR 1,00,000 and a maximum fine of INR 2,000,000.

Documents needed for IPRS License Online

The following essential documents are required in order to obtain an IPRS licence for events:

• personal information such name, address, and nationality.
• PAN (Permanent Account Number) Registration.
• Information about the company Information about the music genres you will play.
• GST Registration Certificate.
• An address verification documents such an electricity bill, a driver’s licence, a voter ID card, and an Aadhar card if you operate an LLP (Limited Liability Partnership).

Essential Points to keep in mind under IPRS License

• License fees must be paid by all users in accordance with the tariff. It is relevant to both live and recorded music.
• The annual licensing payments must be paid upfront and within the tariff’s specified time-frame, which is one month or the duration specified in the agreement.
• If the annual licence cost is not paid within the allotted time, there will be an 18% penalty and 18% interest.
• On each anniversary of the tariff, the rates will be raised by 10%.
• All royalties are charged in advance for a period of 12 months and must be paid at the start of the period, exclusive of any and all applicable taxes and GST (Goods and Service Tax).
• All licences that are given must be signed by a representative of the IPRS and must adhere to the terms and conditions outlined in the agreement. The licensee is also presumed to have accepted these terms and conditions.
• In other words, if music is playing in one area of the premises and audible to other areas as well, the entire area will be taken into account when calculating the fees due. The area for licensing of premises is not dependent on the audibility of the music being played.
• The RTO Authorities’ definition of “light” and “heavy” vehicles will be the same. Wall to wall space is referred to as the premises’ floor area, carpet area, and square feet.
• For open performances or concerts, the ground plan must be filed in order to get 40% of the scheme’s benefits, and the permit application must be submitted 8 days before the performance date.
• For the inspection while applying for the licence, two tickets to the event must be presented.
• The “Performing Rights” of the musical compositions and/or related literary works are covered by the licences granted by the IPRS. The term “performance rights” refers to the ability to perform, communicate to the public, broadcast, and transmit to subscribers of a diffusion service within a given geographic area. The terms cover all forms and modes of use for both the musical compositions and the related textual works.

Application Procedure for IPRS License Online

The steps to apply and register for an IPRS License are shown below.

• The first step for the application is to choose the exact category needed for the music licence.
• Both offline and online filling methods are available. Depending on the particular category for which they are asking for a licence, the applicant must submit the necessary paperwork.
• The applicant must meet the requirements in the following categories:
  • The applicant’s full name.
  • Complete and accurate applicant’s address, applicant’s contact information.
  • Applicant’s email address, and GST Registration
  • Login ID, and applicant’s password generated via the official IPRS website
• • The applicant will receive an OTP through SMS for the purpose of verification.

• The total amount of the relevant government fees must then be paid by the applicant, either online or offline.
• After all payments have been paid and the applicant has been registered, the IPRS produces a “Introduction Letter” for the applicant that can be used as proof that the registration has been updated in the IPRS Database System.

Conclusion

The IPRS (Indian Performing Right Society) Limited Society is an organisation that grants licences for live performances as well as for any other performance that is primarily used for commercial purposes, etc., and is carried out using mechanical devices, such as FM radio, TV sets, juke boxes, record players, or other musical instruments. The IPRS License may be granted for a wide range of establishments, including sizeable indoor or outdoor venues like theatres, nightclubs, concert venues, hotels, etc.