Tips Industries Ltd. v. Wynk Music Ltd. and Ors.
[2019 SCC OnLine Bom 13087]
Coram: Single Judge comprising of Hon’ble Justice S.J. Kathawalla
Forum: Hon’ble High Court of Bombay
Case No.: Notice of Motion (L) No. 197 of 2018, Commercial Suit IP (L) No. 114 of 2018, Notice of Motion (L) No. 198 of 2018 and Commercial Suit IP (L) No. 113 of 2018.
Date of Decision: April 23, 2019

Facts:

  • The Plaintiffs licensed over 25,000 songs from their repertoire to the Defendants at a license fee of 1.31 crores per year, under a license agreement. The license was valid till 31st August 2018.
  • WYNK, an Over the Top Service operated by the Defendants, providing access to sound recordings and audio-visual recordings, including the Plaintiff's Repertoire, upon payment of a subscription fee.
  • The Defendants had continued to use the Plaintiff's Repertoire without authorization, leading to a dispute when negotiations for a renewed license agreement failed. The Defendants claimed a statutory license under Section 31-D of the Copyright Act, which the Plaintiff disputed as illegal.
  • Subsequently, the Plaintiff filed two suits against the Defendants for copyright infringement. The Plaintiff sought permanent injunctions against the Defendants, restraining them from communicating the Plaintiff's repertoire of songs to the public and providing download services of the repertoire for commercial purposes.



Main Issue:

  1. Whether the Defendants can use Section 31-D of the Act to claim a Statutory License for their download/purchase business and whether the same provision applies to the Plaintiff's Repertoire for internet broadcasting?
  2. Whether the Defendant’s use of the work came under the ambit of fair use?