INTELLECTUAL PROPERTY CHALLENGES IN THE MUSIC STREAMING INDUSTRY

Abstract

As a passionate music Fan, I embark on a unique trip to explore the complex relationship between Intellectual Property Rights (IPR) and Competition Law, driven by my deep love for the transformative nature of music. In the moment’s digital period, we’ve unknown access to music, enabling fans like myself to explore colorful stripes, artists, and societies with ease. How do artists, record markers, and streaming platforms navigate the intricate web of brand laws? These inquiries steer my examination of the legal structures governing brand licensing and their significant impact on the competitive dynamics of the music business. Are assiduity titans like Spotify, Apple Music, or Amazon Music impeding healthy competition, limiting consumer choices, or fostering invention? This aligns with my admiration for artists who challenge morals- does the legal frame support invention, or does it hamper their creative freedom? As I claw into these critical issues, I draw alleviation from the rebellious spirit of musicians who defy conventions, just as I aim to challenge established morals in the realm of IPR and Competition Law.

Keywords

Intellectual property, Music, Trademark, Licensing, Copyright, Challenges.

Introduction

Intellectual Property (IP) is a pivotal element of music assiduity, acting as a safeguard for creative content and a means of ensuring fair compensation. Once music is converted into a palpable form, like a sound recording, it’s classified as intellectual property. This protection covers both the composition- encompassing warbles and lyrics and the factual sound recording. Imprints, trademarks, and empowering agreements are abecedarian aspects of IP in this field. Imprints grant music generators exclusive rights to their work, securing against unauthorized use and guaranteeing fair payment.

Trademarks cover band names and ensigns, contributing to a strong brand identity. empowering agreements establish a legal frame for exercising copyrighted material, furnishing musicians with openings to induce fresh income. Despite the advantages offered by IP laws, the rise of the Internet and streaming services has introduced new complications, making the operation of IP in the music assiduity more grueling than ever ahead.

Musicians and assiduity professionals need to have a comprehensive understanding of intellectual property rights for colorful reasons. originally, it ensured that music generators admit proper recognition and compensation for their sweat, promoting fairness within the assiduity. Secondly, it allows artists to monetize their work through licensing agreements, creating fresh profit aqueducts beyond live performances and direct deals. also, it discourages unauthorized use of their work, conserving the integrity of their creations and precluding fiscal losses due to brand violations.

Incipiently, a thorough appreciation of IP rights can help musicians and assiduity professionals acclimatize to the fleetly changing digital geography, enabling them to stay informed about legal matters in a period where online streaming and digital downloads are current. Hence, a strong understanding of intellectual property rights isn’t only profitable, but imperative for the long-term sustainability and substance in the music sector.

Intellectual Property in the Music Assiduity

It pertains to the original workshop of the mortal mind that is supposed good legal protection. This includes original musical compositions, sound recordings, lyrics, and reader artwork. By securing these creations, intellectual property laws ensure that artists and generators have the exclusive right to control and benefit from their work. Understanding the different types of intellectual property rights in music is essential for successfully navigating the assiduity.

Music Copyrights

Copyright law grants creators of original works the authority to control the use of their creations. In the case of music, copyright protections enable artists to prevent unauthorized usage of their songs. Once a musical composition is recorded or documented in written form, copyright protection is immediately conferred.[1]

A song encompasses two distinct copyright protections:

Sound recording copyright: This safeguard is linked to a specific recording. Once an artist produces a recording of their song, they assume ownership of that particular recording or may assign ownership to the record label representing them.
Musical composition copyright: This type of copyright pertains to the composition’s music and lyrics, and it is owned by the songwriter(s). Often, the ownership of this protection is transferred to a music publisher who represents the artist.

What is Copyright in Music

Copyright is maybe the foremost well-known shape of intellectual property security within the music industry. It gifts the maker of a unique work the select rights to reproduce, disseminate, perform, and show the work. Within the Joined Together States, copyright security is programmed upon creation,

meaning that as before long as a melodic composition or sound recording is settled in a substantial shape (such as a recording or sheet music), it is secured by copyright. In any case, enrolling a copyright with the U.S. Copyright Office gives extra benefits, such as the capacity to sue for encroachment and the assumption of proprietorship.

Different Kinds of Intellectual Property in the Music Industry

Copyrights – The most common form of intellectual property in the music industry is copyrights. It gives the owner exclusive rights to reproduce, distribute, perform, display, or license their work.
Trademarks – Trademarks safeguard logos, titles, and catchphrases that distinguish products or services. In music, this can include band logos or names.
Patents – Although less common in music, patents can protect new and useful processes, machines, or compositions of matter.

For instance, a special technique for creating specific sounds might have the potential to be patented.[2]

Trade secrets – Trade secrets are techniques, strategies, or other information used by a company that give it a competitive advantage and are kept secret. In the music industry, this could include unique production techniques or marketing strategies.
Musical Works – This refers to the creation of music and lyrics. A song consists of melodies, harmonies, rhythms, and lyrics. When a musical work is created and fixed in a perceptible form, it becomes protected under copyright law, giving the creators exclusive rights to reproduce, distribute, and perform their work publicly.
Sound Recordings – A sound recording is the fixation of a series of musical, spoken, or other sounds in a tangible medium. It could be a vinyl record, a CD, or a digital audio file. Copyright protection for sound recordings is separate from the copyright of the musical work it contains. It protects the specific series of sounds against reproduction, distribution, and certain types of public performance and broadcast.

Infringement Penalties in the Context of Music

It involves the unauthorized use of copyrighted material. Copyright infringement occurs when a work is both original and belongs to the original author, and when the infringing work is a direct copy of the original.

The minimum penalty for copyright infringement is six months of imprisonment and a fine of Rs. 50,000.[3] For repeat offenders, the penalty increases to one year of imprisonment and a fine of Rs. 1 lakh.

The Importance of Trademarks in the Music Industry

Trademarks are crucial in the music industry, serving as a vital tool alongside copyright protection. They safeguard the names, logos, and brands linked to musicians, bands, record labels, and music venues. For instance, trademarks shield renowned band names like The Rolling Stones and record labels such as Atlantic Records, ensuring that no one else can use similar names which might lead to confusion among consumers. Establishing and preserving a distinct brand identity in the music industry heavily relies on trademarks.

Intellectual Property and Licensing

Licensing is a crucial element of intellectual property within the music industry. It enables artists and creators to authorize others to utilize their copyrighted creations in return for payment. This encompasses licensing music for various purposes such as films, television programs, advertisements, video games, and even for background music in public venues.[4] Through licensing agreements, the specific terms and conditions for the usage of the music are established, safeguarding the rights of the copyright owner and creating avenues for generating extra income.

Various Licensing Options Available, including Performance Royalties and Sound Recording Copyright

Performance Royalties serve as a form of compensation for copyright holders, composers, and publishers whenever their music is played in public settings. This can include radio or TV broadcasts, live performances at venues like restaurants or bars, or even concerts. In the U.S., organizations like ASCAP, BMI, and SESAC are responsible for collecting and distributing these

On the other hand, Sound Recording Copyright protects the recorded version of a musical composition, safeguarding not just the song itself but also its specific arrangement and recording. Typically, this type of copyright is owned by the recording artist or their record label. Sound Exchange is the entity that collects and distributes royalties for sound recording copyrights in the U.S., particularly for digital broadcasts like those on online streaming services.[5]

Case Law

– In the 2018 case of [6]Tips Industries Ltd. v. Wynk Music Ltd., a disagreement arose regarding music licensing agreements and royalties in India.

– The 2012 case of the [7]Indian Singers’ Rights Association v. Union of India focused on the rights of artists within India’s music industry.

– In the 2020 Case Of [8]IPRS VS ENIL, It was held that when a song is played on the radio, royalties must be paid for both the sound recording and the underlying works. These royalties are the responsibility of the radio station, as they are the ones making the work available to the public and benefiting from it under Section 31D. Whether the license is for the sound recording or the underlying works, the outcome remains the same – separate royalties must be paid. The Intellectual Property Appellate Board has established specific rates for both the sound recording and the underlying works.

– According to a ruling by the Honourable Madras High Court in the case of [9]M/S Indian Record Manufacturing vs. Agni Music Sdn Bhd (2010), it was established that the person responsible for creating the music is considered the music composer. However, the owner of the work is typically the producer, unless the producer willingly relinquishes their rights to the composer.\

– In the famous legal battle of [10]Mannu Bhandari vs. Kala Vikas Pictures Pvt. Ltd. and Ors. (1986), the Delhi High Court made a groundbreaking decision. They ruled that moral rights extend not only to visual works but also to audio creations. This landmark case emphasized the importance of protecting artistic integrity and creative expression in both the visual and auditory realms.

Impact on Competition

The regulation of licensing, royalties, and artists’ rights in the music sector through India’s Copyright Act and court decisions has had a significant impact on competition.[11]

There are two categories of Intellectual Property Rights Associated with a Song

Lyrics: The written words of a song are considered literary works and are protected under copyright law.
Melody: The musical composition of a song, including the arrangement and harmonies, falls under the category of musical works and is also protected by copyright.[12]

Both the lyrics and the melody are considered original creations of the song’s creator and are collectively known as authorial works.

In the realm of music, copyright grants the owner exclusive rights to reproduce, publish, and publicly perform their song. This includes the right to make sound recordings, such as digital files in formats like MP3, MP4, and WAV. Sound recordings are also protected by copyright, with an additional right to receive payment for public performances, known as equitable remuneration.

For instance, if a business intends to play recorded songs in a public setting like restaurants or retail shops, it must obtain licenses for the public performance of both the song recording and its underlying music, which includes the original musical scores and lyrics.

Typically, when a song is played from a music streaming platform in a public space, the business has already paid for the public performance of the underlying music. However, they would still be required to pay for the public performance of the sound recording. Conversely, if a song is played on a radio, the business is not obligated to pay for the public performance of either the underlying music or the sound recording.

What Measures does Intellectual Property Law Employ to Safeguard Musicians and the Music Industry?

Intellectual property (IP) law plays a crucial role in safeguarding the interests of musicians and the music industry. Copyrights grant musicians and songwriters the exclusive rights to reproduce, distribute, and perform their music, thereby preventing unauthorized use of their work. This ensures that musicians are fairly compensated for their creative efforts and have control over how their music is marketed and shared. Trademarks protect the names and logos of musicians, bands, and record labels, enabling them to establish a unique brand identity and prevent others from exploiting their reputation. Additionally, patents safeguard innovations in the music sector, such as new musical instruments or recording technologies, by providing creators with the opportunity to profit from their inventions and encouraging a mindset of constant innovation within the field.[13]

Power of the Intellectual Property Rights in Music

The intellectual property rights in a song are generally possessed by either an individual or a company that has the exclusive rights to the content. For authorial workshops like erudite and musical pieces, the brand originally belonged to the authors themselves.

In the case of a sound recording, the first proprietor is generally the creator of the recording, like the recording artist or the recording company. also, for the underpinning music, the original possessors are the generators of the music, similar to the musician and lyrist (although their rights are generally transferred to a music publisher for kingliness payments and brand enforcement).[14]

This setup gives content generators the dereliction power, indeed for content that has been commissioned. still, there’s an exception for content created by employees. However, also your employer would generally enjoy the rights to any content you produce during your employment If you’re a creator working for someone differently.

For case, if you’re a tunesmith employed by a music company to write a song, the music company would enjoy the IP rights to that song by dereliction. These dereliction of power positions can be altered through a written agreement between the parties. They can decide to change the dereliction power so that the manager or the hand becomes the brand proprietor.

What are the Various ways in which Music Rights can be Violated in terms of Intellectual Property?

Unauthorized use of music or songs without the permission of the rights owner and in the absence of any exceptions to infringement constitutes a violation of intellectual property rights.

For instance, if a copyrighted song is performed at a bar without obtaining the necessary license for public performance, it would infringe upon the copyright owner’s exclusive right to public performance.

In such cases, the rights owner or their exclusive licensee has the right to initiate legal proceedings against the individual or entity responsible for the infringement.

Defenses Against Intellectual Property Rights Infringement

Various defenses can be used by a copyright infringer, also known as “permitted uses” under the Copyright Act. These defenses allow for the unauthorized use of content for the public benefit without infringing on intellectual property rights. Some of these defenses include:

– Fair use, such as when references to a musical work are made in daily news reporting, with proper acknowledgment of the work;

– Educational uses, like using a song for a music education course in an educational institution;

– Uses by individuals with print or intellectual disabilities, for example, making a copy of a song to assist a person with an intellectual disability; and

– Uses by cultural and heritage institutions, such as playing a song at a museum open to the public.

The first defense of “fair use” is a general exception that depends on factors like the purpose and character of the use, the nature of the work being used, the amount of the work being used, and the effect on the potential market for the work. For instance, quoting song lyrics in a scholarly article without the creator’s permission may be allowed under fair use if the purpose is non-profit and educational, the quoted material is necessary for the analysis, and the impact on the market for the work is minimal. Explore the colorful results that can be pursued in case of violation of your intellectual property rights still, you have the option to pursue civil action against the infringer. If your intellectual property rights have been violated. The court may give the following remedies:

Injunctions to halt the infringing conditioning;
Damages or fiscal compensation for any losses incurred by the proprietor of the brand;
fresh damages for violation or gains gained by the infringer through the violation;
Account of gains, which involves the infringer paying the brand proprietor the gains attained from using the copyrighted material; Orders for the infringer to surrender all infringing particulars to the brand proprietor or dispose of them.

For illustration, if a song is unlawfully copied and uploaded on YouTube without the creator’s concurrence, the court may issue an obligatory instruction to remove the song from the platform. also, damages may be awarded to compensate the creator for losses incurred due to the infringement.

However, these gains must be paid to the creator, If the infringer made any gains from posting the song on YouTube. The court may also bear the infringer to surrender any remaining clones of the song to the creator. When determining the quantum of damages, the court will take into account colorful factors, including the nature of the violation and the need to help unborn cases of intellectual property violations.[15]

Understanding and Abiding by IP Law is Crucial for Businesses due to Several Reasons

Firstly, compliance with IP law is essential to avoid legal consequences and financial penalties. It is imperative for businesses, especially those in the music industry, to obtain the necessary permissions and licenses before utilizing someone else’s music or creative works. By doing so, they can ensure legal compliance and mitigate the risk of facing legal action.

Secondly, IP law plays a significant role in ensuring fair compensation for musicians and other creators. By respecting and adhering to these laws, businesses contribute to the support and growth of the music industry. IP law guarantees that creators are appropriately remunerated for their work, which is vital for sustaining their livelihoods and encouraging further innovation.[16]

Furthermore, understanding IP law is crucial for businesses to protect their rights. As a business, you possess intellectual property rights that need safeguarding. Familiarity with IP law enables you to shield your creations and innovations, preventing unauthorized use by others.

By comprehending and abiding by IP law, businesses can effectively safeguard their intellectual property and maintain a competitive edge in the market.

Thus, businesses must prioritize understanding and abiding by IP law to ensure legal compliance, support fair compensation for creators, and protect their intellectual property rights. By doing so, they contribute to a thriving and innovative business environment while avoiding potential legal and financial repercussions.

Conclusion

Intellectual property rights are fundamental in the music industry as they serve to protect the artistic creations of musicians and ensure that they receive just compensation for their work. Copyrights and trademarks are vital in the effort to prevent piracy and unauthorized use of music.

Despite the persistent challenge of piracy, various legal strategies, technological advancements, and increased awareness can be employed to address this issue. In light of the evolving landscape of the music industry, artists and other stakeholders must be willing to adapt to changing trends in music consumption and explore innovative methods to monetize their music while upholding the principles of intellectual property rights. Through these efforts, a vibrant music industry can be cultivated that not only celebrates creativity and diversity but also brings happiness to audiences around the globe.

References

Intellectual Property in the Music Industry, National Inventors Hall Of Frame, https://www.invent.org/blog/intellectual-property/music-copyright
Arlen Olsen, Schmeiser Olsen and Watts LLP, https://iplawusa.com/navigating-intellectual-property-law-in-the-music-industry/
Safiya Zahid Shaikh, Protection of Music Under IPR Law, IPleaders, https://blog.ipleaders.in/protection-of-music-under-ipr-law/
Yellow Brick, https://www.yellowbrick.co/blog/entertainment/understanding-intellectual-property-in-music-a-comprehensive-overview
Case Law, https://indiankanoon.org/doc/90217575/
Case Law, https://indiankanoon.org/doc/94223814/
Case Law, https://iprmentlaw.com/2021/01/10/iprs-vs-enil-delhi-high-court-decision-death-to-music-publishing-royalties-in-india-read-judgement/
Case Law, https://indiankanoon.org/doc/98552858/
Case Law, https://indiankanoon.org/doc/331111/
Himansu Mishra, Music to the Ears, Law to the Mind: Analysis IPR and Competition Issues Globally, Legal Service India E-journal, https://www.legalserviceindia.com/legal/article-13889-music-to-the-ears-law-to-the-mind-analysing-ipr-and-competition-issues-globally.html
Singapore Legal Advice, https://singaporelegaladvice.com/law-articles/intellectual-property-ip-issues-music-songs/
Dr Douglas Hendry, Virtuoso Legal. https://www.virtuosolegal.com/faq/how-ip-law-protects-the-music-industry/
RahulDev, https://patentbusinesslawyer.com/understanding-intellectual-property-rights-in-the-music-industry/

[1] National Inventors Hall of Frame, https://www.invent.org/blog/intellectual-property/music-copyright (Last visited 16 March 2024)

[2] Schmeiser Olsen and Watts LLP, https://iplawusa.com/navigating-intellectual-property-law-in-the-music-industry/ (Last Visited 16March 2024)

[3] Safiya Zahid Shaikh, Protection of Music Under IPR Law, IPleaders , (March 17, 2024, 1:22 PM) https://blog.ipleaders.in/protection-of-music-under-ipr-law/

[4] Yellow Brick, https://www.yellowbrick.co/blog/entertainment/understanding-intellectual-property-in-music-a-comprehensive-overview (Last visited 16 March, 2024)

[5] Schmeiser Olsen and Watts LLP, https://iplawusa.com/navigating-intellectual-property-law-in-the-music-industry/ (Last Visited 17 March, 2024)

[6] Tips Industries Ltd. v. Wynk Music Ltd, AIRONLINE 2019 BOM 1452

[7] Indian Singers’ Rights Association v. Union of India, AIR 2016

[8] IPRS Vs ENIL, AIR 2020 Delhi High Court.

[9] M/S Indian Record Manufacturing vs. Agni Music Sdn Bhd (2010), Madras High Court, 338

[10] Mannu Bhandari vs. Kala Vikas Pictures Pvt. Ltd. and Ors. (1986), 30 DLT 502

[11] Himansu Mishra, Music to the Ears, Law to the Mind: Analysis IPR and Competition Issues Globally, Legal Service India E-journal, (March 17, 2024, 4:27 PM) https://www.legalserviceindia.com/legal/article-13889-music-to-the-ears-law-to-the-mind-analysing-ipr-and-competition-issues-globally.html

[12] Singapore Legal Advice, https://singaporelegaladvice.com/law-articles/intellectual-property-ip-issues-music-songs/ (Last visited 17 March,2024)

[13] Virtuoso Legal. https://www.virtuosolegal.com/faq/how-ip-law-protects-the-music-industry/ (Last visited 17 March 2024)

[14] RahulDev, https://patentbusinesslawyer.com/understanding-intellectual-property-rights-in-the-music-industry/ (Last visited 17 March, 2024)

[15] Singapore Legal Advice, https://singaporelegaladvice.com/law-articles/intellectual-property-ip-issues-music-songs/ (Last visited 17 March,2024)

[16] Virtuoso Legal. https://www.virtuosolegal.com/faq/how-ip-law-protects-the-music-industry/ (Last visited 17 March 2024)

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