A recent ruling by the Delhi High Court has significantly changed how music licensing will work in India, especially in public places like restaurants, bars, and cafes. The court has ruled that Phonographic Performance Limited (PPL) can no longer issue licences for playing music in public. The reason? PPL is not a registered copyright society under the Copyright Act, 1957, and therefore does not have the legal authority to operate a licensing business.
PPL represents hundreds of music labels and holds the rights to over 4 million Indian and international songs. It has been collecting fees from businesses like hotels and restaurants in exchange for allowing them to play this music publicly. In 2022, PPL sued Azure Hospitality—owners of restaurants like Mamagoto and Dhaba—claiming they used PPL-owned music without paying for a licence. A lower court initially sided with PPL, saying they could issue licences as a copyright owner, even without being a registered copyright society.
However, this week, a two-judge bench overturned that decision. The judges agreed with Azure, ruling that under Section 33 of the Copyright Act, only registered copyright societies are allowed to issue public performance licences. They warned that allowing unregistered companies like PPL to issue licences could create confusion, lead to overlapping charges, and undermine the legal protections for artists, songwriters, and music labels.
This ruling doesn’t mean businesses can start playing music for free. The court was clear: restaurants and other venues still need to pay for using copyrighted music, but they must do so through legal channels. In this case, Azure was told to pay what they would have paid to Recorded Music Performance Ltd., a registered company authorized to issue licences.
For PPL, the ruling presents two options—either reapply to become a registered copyright society (a status it held until 2014), or stop issuing licences altogether. For restaurant owners, the decision brings more clarity and prevents the risk of paying multiple companies for the same rights. While the public may not notice any change in the music they hear while dining out, this ruling marks a big step toward better regulation and transparency in India’s music licensing system.
