The Calcutta High Court has ruled that telecom operator Vodafone Idea cannot commercially use songs as caller tunes and ringtones merely through licensing agreements with music label Saregama India, holding that separate permission from the Indian Performing Right Society is mandatory for the use of lyrics and musical compositions embedded in those recordings.
A Division Bench comprising Debangsu Basak and Mohammad Shabbar Rashidi said ownership of a sound recording does not automatically include rights over the literary and musical works that form part of it.
The dispute centred on Vodafone Idea’s value-added services that allow subscribers to set film and non-film songs as caller tunes. The telecom company argued that its agreements with Saregama, which controls the sound recordings, were sufficient and that no additional royalty payment was due to IPRS.
The Court disagreed.
In its ruling delivered on May 8, the Bench observed that copyright law treats sound recordings, lyrics and musical compositions as separate categories of protected work. As a result, using a song commercially involves more than just securing rights to the recording itself.
The judges noted that amendments introduced to copyright law in 2012 strengthened protections for lyricists and composers, ensuring that authors of literary and musical works continue to receive royalties when their creations are commercially exploited.
According to the Bench, the only narrow exception applies when a cinematograph film is screened in its entirety in a cinema hall. Any other form of commercial use — including caller tunes and ringtones — attracts royalty obligations toward authors and composers.
The Court further held that Saregama lacked the authority to grant Vodafone Idea rights over the underlying lyrics and music without the consent of IPRS.
Reviewing the agreements placed on record, the Bench said none of them accounted for royalty payments owed to IPRS for exploitation of the embedded literary and musical content.
The Court consequently directed that funds deposited before the Joint Special Officers and the Registrar on the Original Side be released to IPRS, subject to an undertaking that the amount would be refunded if the copyright society ultimately loses the suit.
Vodafone Idea’s plea seeking a stay on the judgment was also rejected.
