Calcutta High Court: Hotels Need Licence for Music on Hotel TVs

• Hotels in India must obtain a copyright licence for music played through TVs in rooms.
• Providing cable television is considered a commercial amenity under the Copyright Act, 1957.
• Hotels cannot avoid paying copyright royalties merely because they have paid subscription charges to their cable operators.
• The Court's decision sets a precedent for future cases involving copyright infringement by hotels.

The actions on the part of the respondent surely fell within the meaning of ‘commercial exploitation’ of the literary and musical works owned by the members of the appellant.

The Calcutta High Court has ruled that hotels providing cable television in their rooms must obtain a copyright licence for music played through TVs, even if the cable operator has already obtained a licence from the copyright holder. This decision was made in an appeal filed by the Indian Performing Right Society Limited (IPRS) against Hotel Appolo & Tours Private Limited. The Court held that providing cable television is a commercial amenity and amounts to ‘communication to the public’ under the Copyright Act, 1957.

The IPRS had sued the hotel for using copyrighted literary and musical works without a licence or payment of royalty. The hotel argued that it had already paid subscription charges to the cable operator, which held the necessary broadcast rights. However, the Court ruled in favour of the IPRS, stating that the hotel's actions constituted ‘commercial exploitation’ of the copyrighted works.

The Court's decision was delivered on August 4 by a Bench of Justices Debangsu Basak and Md Shabbar Rashidi.

This ruling is significant because it clarifies the liability of hotels in India for copyright infringement. Under the Copyright Act, 1957, ‘communication to the public’ includes any transmission or retransmission of a work by electronic means, including cable television. The Court's decision suggests that hotels cannot avoid paying copyright royalties merely because they have paid subscription charges to their cable operators.

The IPRS had approached the District Judge at Darjeeling in 2023 seeking to restrain the hotel from using its copyrighted works without a licence. After the court refused interim relief in September 2024, IPRS moved the High Court in appeal. The Court's ruling is a victory for the IPRS and sets a precedent for future cases involving copyright infringement by hotels.

The Copyright Act, 1957, requires that any commercial use of copyrighted works must be licensed and royalties paid to the copyright holder. Hotels providing cable television in their rooms are considered to be engaging in commercial exploitation of the copyrighted works, and therefore must obtain a licence from the copyright holder.

Hotels in India should review their contracts with cable operators and ensure they have obtained a copyright licence for music played through TVs in rooms. Failure to do so may expose them to compliance risks, including liability for copyright infringement. The Court's decision highlights the importance of obtaining necessary licences and paying royalties for copyrighted works used in commercial settings.

This ruling has implications not only for hotels but also for other businesses that provide cable television services. They must ensure that they have obtained the necessary licences and paid royalties to avoid liability for copyright infringement. The Court's decision is a reminder that copyright laws are in place to protect creators' rights, and businesses must respect these rights when using copyrighted works.

The IPRS has welcomed the Court's decision, stating that it will help to protect the rights of creators and ensure that they receive fair compensation for their work.

Hotels in India should review their contracts with cable operators and ensure they have obtained a copyright licence for music played through TVs in rooms, as failure to do so may expose them to compliance risks.

Source: Original reporting via The Hindu