Tips Industries Ltd v Wynk Music Ltd

2019 SCC OnLine Bombay 14752019Information Technology Law
it-lawstatutory-licensestreamingcopyright

Rule established

A statutory license under S.31D of the Copyright Act does not cover internet/online streaming; streaming services need direct licenses from copyright owners.

Facts

  • Tips Industries owned copyright in a large catalogue of Bollywood film music
  • Wynk Music (operated by Bharti Airtel) offered music streaming and downloads via its app
  • Licence negotiations between Tips and Wynk broke down over royalty rates
  • Wynk continued streaming Tips' music, claiming protection under S.31D (statutory licence for broadcasting organizations)
  • Tips filed suit for copyright infringement and sought an injunction
  • Wynk argued S.31D covered internet broadcasting including on-demand streaming

Issues

  1. Whether S.31D of the Copyright Act 1957 (statutory licence for broadcasting) covers interactive/on-demand streaming services
  2. Whether there is a distinction between "internet broadcasting" and "on-demand streaming" for purposes of statutory licence

Held

  • S.31D applies to "broadcasting" which means communication to the public by any means of wireless diffusion, whether one-to-many simultaneous transmission
  • On-demand/interactive streaming (where a user selects a specific song to play at a chosen time) is NOT broadcasting; it is a distinct right under S.14(1)(e)
  • Wynk's service was interactive (users chose songs, created playlists, downloaded); this is not covered by S.31D
  • Injunction granted restraining Wynk from using Tips' catalogue without a voluntary licence
  • The distinction between linear broadcast and interactive access is fundamental to copyright licensing

Ratio Decidendi

Statutory licence under S.31D is a narrow exception to exclusive rights, available only for simultaneous one-to-many communication (broadcasting/simulcasting). Interactive streaming where the user controls what plays and when engages the separate right of "making available to the public" (S.14(1)(e)(iii)), which requires a voluntary licence. Exceptions to copyright must be strictly construed.

How to use it in an exam

  • Key authority on the scope of statutory licence under S.31D
  • Cite in IPL/IT questions on music streaming, copyright in the digital age, and platform licensing
  • Relevant for distinguishing broadcasting rights from interactive/on-demand rights
  • Pair with IPRS v Eastern Indian Motion Pictures (1977) for the broader licence vs assignment framework

Source

Source: 2019 SCC OnLine Bombay 1475

This is an educational summary, not the judgment itself. Cite the reported version in professional or academic work.

Cited in study notes

it-lawCopyright in Information Technology and SoftwareA statutory license under S.31D of the Copyright Act does not cover internet/onl