UNIT 3

Economic Rights under Section 14 of the Copyright Act, 1957

Section 14 of the Copyright Act, 1957, outlines the economic rights granted to copyright holders. These rights
allow the copyright owner to exploit their work commercially and control its use, ensuring they receive
economic benefits. The nature of these rights varies depending on the type of work (literary, dramatic, musical,
artistic, cinematograph films, or sound recordings).

Below is a detailed explanation of these rights with examples.

1. Right of Reproduction

Description:

The copyright owner has the exclusive right to reproduce their work in any material form, including digital or
physical formats.

Applicable Works:

 Literary, Dramatic, Musical, and Artistic Works

Examples:

 A novelist can authorize the printing of their book in hardcopy or digital formats (e.g., Kindle editions).
 An artist can reproduce their painting as prints for commercial sale.
 A music composer can prevent unauthorized copying of sheet music.

2. Right of Public Communication

Description:

The owner has the right to communicate their work to the public by any means, including broadcasts, streaming,
or public presentations.

Applicable Works:

 Literary, Dramatic, Musical, Artistic Works, Cinematograph Films, and Sound Recordings

Examples:

 Broadcasting a play on television or YouTube.

 Streaming a song on platforms like Spotify or Apple Music.
 Public display of artwork in an exhibition.

3. Right to Perform the Work in Public

Description:

This right allows the copyright owner to perform their work in public or authorize others to do so.

Applicable Works:

 Literary, Dramatic, and Musical Works

Examples:

 A theater company staging a playwright’s drama in front of an audience.

 A band performing copyrighted songs at a live concert.

4. Right to Communicate the Work

Description:

The right to communicate the work to the public encompasses broadcasting, streaming, or making it available
online.

Applicable Works:

 Literary, Dramatic, Musical, Artistic Works, Cinematograph Films, and Sound Recordings

Examples:

 Streaming a copyrighted movie on Netflix.

 Broadcasting a live concert on radio or television.

5. Right to Make a Cinematograph Film or Sound Recording

Description:

The owner of a literary, dramatic, or musical work has the exclusive right to authorize the creation of a
cinematograph film or sound recording based on their work.

Applicable Works:

 Literary, Dramatic, and Musical Works

Examples:

 Adapting a novel into a feature film (e.g., J.K. Rowling’s Harry Potter series).
 Recording a musical composition as a studio track.

6. Right to Make Adaptations

Description:
The right to adapt a work into another form, such as a screenplay, dramatization, or abridgment.

Applicable Works:

 Literary, Dramatic, and Musical Works

Examples:

 Adapting a short story into a stage play.

 Creating an instrumental version of a copyrighted song.

7. Right to Make Translations

Description:

The owner of a literary, dramatic, or musical work has the exclusive right to translate it into another language.

Applicable Works:

 Literary, Dramatic, and Musical Works

Examples:

 Translating a novel written in English into Hindi.

 Translating song lyrics into another language for performance.

8. Right to Rental

Description:

This right allows the owner to authorize or prohibit the commercial rental of certain works.

Applicable Works:

 Computer Programs, Cinematograph Films, and Sound Recordings

Examples:

 Renting software to businesses (e.g., SaaS models).

 Renting DVDs of movies or music albums.

9. Rights in Cinematograph Films

Description:

The producer of a cinematograph film holds exclusive rights, including:

 Reproducing the film.

  Communicating the film to the public.
 Selling or distributing copies.

Examples:

 A film producer licensing a movie to OTT platforms like Netflix or Amazon Prime.
 Selling DVDs or Blu-ray copies of a movie.

10. Rights in Sound Recordings

Description:

The producer of a sound recording has the right to:

 Reproduce the recording.

 Sell or distribute copies.
 Communicate the recording to the public.

Examples:

 A music producer releasing a song on streaming platforms like Spotify.

 Selling vinyl records or CDs of an album.

11. Right of Disclosure

Description:

The author has the right to decide when and how their work will be made public.

Applicable Works:

 All types of works

Examples:

 An author decides the release date for their novel.

 A painter unveils a new work at an art exhibition.

12. Right of Paternity

Description:

The author has the right to claim authorship and receive proper attribution for their work.

Applicable Works:

 All types of works

Examples:

 A writer’s name must be mentioned on the cover of their book.

 A composer must be credited for a song in a film.

13. Right of Integrity

Description:

The author can prevent distortion, mutilation, or modification of their work that could harm their reputation.

Applicable Works:

 All types of works

Examples:

 An artist can object to the unauthorized alteration of their painting.

 A lyricist can prevent derogatory adaptations of their song.

Moral Rights of the Author (Section 57 of the Copyright Act, 1957)

Moral rights are distinct from economic rights and focus on protecting the personal and reputational interests of
authors and creators. These rights ensure that an author's relationship with their work is respected, even if the
copyright (economic rights) has been transferred to another party.

Section 57 of the Copyright Act, 1957, outlines the moral rights of the author, including:

1. Right of Paternity (Right to Attribution).

2. Right of Integrity (Right to Prevent Distortion or Mutilation).

1. Right of Paternity (Attribution)

Description:

The author has the right to claim authorship of their work. This ensures that the author is credited for their work,
regardless of who holds the copyright.

Examples:

 A writer must be credited on the cover of their book, even if the publisher owns the copyright.
 A filmmaker must mention the screenwriter’s name in the opening credits.

Case Law:

 Amarnath Sehgal v. Union of India (2005):

o The court upheld the sculptor’s right to be recognized as the creator of his artwork, which was
removed and damaged without his permission.
2. Right of Integrity

Description:

The author has the right to prevent:

1. Distortion.
2. Mutilation.
3. Modification.
4. Any other act that would harm their honor or reputation.

This ensures that the work is not altered in a way that negatively impacts the author’s reputation or distorts their
intended expression.

Examples:

 A photographer can object to their photograph being edited and used out of context.
 A lyricist can challenge derogatory remixes of their song.

Case Law:

 Mannu Bhandari v. Kala Vikas Pictures (1987):

o The court held that adapting a novel into a movie without respecting the author’s intent
violated the moral rights of the author.

3. Applicability

Moral rights apply to all types of works, including:

 Literary works (novels, scripts, poems).

 Artistic works (paintings, sculptures, photographs).
 Musical works (songs, compositions).

4. Limitations on Moral Rights

Exclusions Under Section 57(1):

The author cannot enforce moral rights if:

1. The work was altered or modified in compliance with the copyright owner’s legal rights.
2. The alteration was necessary for technical reasons (e.g., cropping a photograph for printing).

Example:

If a publisher edits a novel to meet printing standards with the author's consent, the author cannot claim a
violation of moral rights.

5. Transferability and Moral Rights

  Non-Transferable: Moral rights remain with the author even if the copyright is assigned or sold.
 Posthumous Protection: Moral rights extend beyond the author’s death and can be enforced by their
legal heirs.

6. Key Case Laws

1. Amarnath Sehgal v. Union of India (2005):

o Sculptor Amarnath Sehgal successfully enforced his moral rights after his sculpture was
removed and damaged by the government without consent.
2. Berne Convention Influence:
o Section 57 aligns with Article 6bis of the Berne Convention, which emphasizes the moral
rights of attribution and integrity.

7. Practical Implications

1. Protecting Reputation:
o Moral rights prevent unauthorized alterations that could harm the author’s reputation.
2. Ensuring Proper Attribution:
o Authors can demand acknowledgment for their contributions, even in collaborative works.
3. Safeguarding Original Expression:
o Authors can protect the integrity of their work, preserving its original intent.

Assignment of Copyright (Sections 18–21 of the Copyright Act, 1957)

Assignment of copyright refers to the transfer of the economic rights of the copyright owner to another person
or entity, either partially or wholly, for a specified period and purpose. The Copyright Act, 1957, governs the
rules and procedures for the assignment of copyright under Sections 18 to 21.

Section 18: Assignment of Copyright

Key Provisions:

1. Right to Assign:
o The owner of a copyright can assign their copyright to another person, either wholly or
partially.
o Assignment can cover:
 All rights (e.g., reproduction, adaptation, distribution).
 Specific rights (e.g., public performance, communication to the public).
2. Scope of Assignment:
o The assignment must specify:
 The rights being transferred.
 The duration of the assignment.
 The territorial scope (e.g., India, worldwide).
3. Limitations:
o If the agreement does not specify a term, the assignment is valid for five years.
o If no territory is mentioned, the assignment is restricted to India.
4. Written Agreement:
o Assignment must be in writing and signed by the assignor or their authorized agent.
 o An oral assignment is not valid under Indian copyright law.

Examples:

 A novelist assigns the right to adapt their book into a movie to a film production company for 10 years.
 A composer assigns the rights to distribute and reproduce their music globally to a record label.

Section 19: Mode of Assignment

Key Provisions:

1. Conditions of Valid Assignment:

o The agreement must explicitly mention:
 The scope of rights being transferred.
 The term of the assignment.
 The territorial extent.
o If any of these elements are missing, the default conditions under Section 18 apply (5 years,
India only).
2. Reversion of Rights:
o If the assignee fails to exercise the assigned rights within one year of the assignment, the
rights revert to the original owner.
3. Royalty Payment:
o For assignments involving the author’s work, the agreement must include details about royalty
payments, if applicable.

Examples:

 A writer assigns the right to publish their book for five years in North America. If the publisher does
not release the book within one year, the rights revert to the writer.
 A songwriter assigns reproduction rights to a music label, with a royalty payment of ₹2 per song sold.

Section 19A: Disputes Relating to Assignment

Key Provisions:

1. Application for Dispute Resolution:

o If a dispute arises regarding the assignment of copyright, the assignor or assignee may apply
to the Copyright Board for resolution.
2. Relief Granted:
o The Board may:
 Revise the terms of the agreement.
 Revert the copyright to the assignor.
 Resolve disputes over royalty payments.

Section 20: Assignment of Copyright by Operation of Law

Key Provisions:

1. Assignment Due to Operation of Law:

 o Copyright can be transferred by operation of law, such as:
 Bankruptcy of the copyright owner.
 Death of the copyright owner (where rights are inherited by legal heirs).
2. Validity of Transfer:
o The transfer is subject to the terms outlined by the law or the legal proceedings involved.

Examples:

 A composer’s copyrights are assigned to their legal heir after their death.
 In a bankruptcy case, a court may assign the copyrights of an insolvent entity to creditors.

Section 21: Restraint on Assignment

Key Provisions:

1. Prohibition of Assignment Against Public Interest:

o The Act prohibits any assignment of copyright that is against public interest.
o Assignments made with fraudulent intent or causing harm to public access to important works
can be invalidated.
2. Judicial Intervention:
o Courts may restrain or annul such assignments to protect public interest.

Examples:

 Assigning exclusive rights over a publicly important research publication to a private entity may be
restrained by the court.
 A licensing agreement that restricts free access to educational material for essential learning purposes
may be annulled.

Important Case Laws

1. Indian Performing Rights Society (IPRS) v. Eastern Indian Motion Pictures Association (1977):
o Highlighted the importance of clear terms in assignment agreements, particularly regarding
royalties and usage rights.
2. Amarnath Sehgal v. Union of India (2005):
o Reaffirmed that the author retains moral rights even after the assignment of economic rights.
3. Raj Rewal v. Union of India (2017):
o Discussed limitations on assignment when the work's integrity is at stake, reinforcing moral
rights over economic assignments.

Practical Considerations in Assignments

1. Clarity in Agreements:
o Ensure that assignment agreements are clear on rights, duration, and territorial scope to avoid
disputes.
2. Royalty Clauses:
o Include detailed provisions for royalty payments, especially for creators like authors and
composers.
3. Reversion Clauses:
 o Protect the assignor’s interest by including reversion clauses if the assignee fails to utilize the
rights.

Key Takeaways

 Assignment of copyright allows creators to commercially exploit their works while retaining moral
rights.
 Sections 18 to 21 ensure transparency, fairness, and public interest in copyright assignments.
 Written agreements with clear terms are essential to protect the interests of both assignor and assignee.
 The Copyright Board and courts provide mechanisms to resolve disputes and ensure fair treatment of
all parties involved.

Licensing of Copyright (Sections 30–32B of the Copyright Act, 1957)

Licensing of copyright refers to the process by which the copyright owner authorizes another person or entity
to use their copyrighted work under specified conditions. The license can be voluntary, statutory, or
compulsory, depending on the type of agreement or statutory requirements.

1. Voluntary Licenses (Section 30)

Definition:

A voluntary license is granted by the copyright owner willingly, allowing the licensee to use the copyrighted
work under mutually agreed terms.

Key Features:

1. Written Agreement:
o The license must be in writing and signed by the copyright owner or their authorized agent.
2. Scope and Conditions:
o The agreement specifies the rights being licensed (e.g., reproduction, adaptation,
communication).
o The agreement may include limitations such as territory, duration, and purpose.
3. Non-Exclusive or Exclusive:
o Licenses can be:
 Exclusive: The licensee alone has the right to use the work.
 Non-Exclusive: The copyright owner can grant similar licenses to others.

Examples:

 A book publisher licenses the right to publish and distribute a novel from the author.
 A music company licenses a song from a composer for inclusion in a film.

2. Statutory Licenses (Section 31)

Definition:
A statutory license is granted by law, requiring the copyright owner to permit the use of their work under
specific circumstances, subject to payment of royalties and compliance with conditions prescribed by law.

Key Features:

1. Legal Requirement:
o The license is mandated by the Act to ensure public access to works while compensating the
copyright owner.
2. Applicability:
o Typically applies to works required for educational, research, or public purposes, such as
translations or reproductions for libraries.
3. Royalty Payments:
o Users of the work must pay royalties as determined by the Copyright Board or other
authorities.

Examples:

 A statutory license for broadcasting musical works and sound recordings on radio and TV.
 Educational institutions reproducing parts of a book for non-commercial purposes.

3. Compulsory Licenses (Sections 31A–31D)

Definition:

A compulsory license allows a person or entity to use a copyrighted work without the owner's direct
permission, typically when the owner has refused to license the work or when the work serves a public interest.

Key Features:

1. Application to Copyright Board:

o The licensee must apply to the Copyright Board for permission to use the work.
2. Conditions for Granting:
o The work is not available to the public at a reasonable price or is required for public interest
purposes.
o The licensee must pay royalties as determined by the Copyright Board.
3. Scope of Use:
o The license is limited to specific purposes, such as translations, reproduction, or broadcasting.

Types of Compulsory Licenses:

1. For Public Interest (Section 31A):

o Issued when a copyrighted work is withheld from the public.
o Example: A company holding exclusive rights refuses to release a life-saving educational
manual.
2. For Translations (Section 32):
o Non-exclusive licenses for translating works into Indian languages for non-commercial
purposes.
o Example: Translating an English textbook into Hindi for use in rural schools.
3. For Works for the Disabled (Section 31B):
o Allows reproduction or adaptation of works for use by persons with disabilities.
o Example: Converting a novel into Braille or an audiobook.
4. For Digital Platforms (Section 31D):
o Allows broadcasting organizations to communicate sound recordings and literary or musical
works on digital platforms, subject to payment of royalties.
 o Example: A streaming platform broadcasting songs without obtaining individual permissions.

Comparison of Licenses

Aspect Voluntary License Statutory License Compulsory License

Granted willingly by the Mandated by law for Granted by law due to public interest or non-
Nature
copyright owner. specific uses. availability.
Requires the copyright Does not require direct Does not require direct consent but requires
Permission
owner’s consent. consent. application to the Copyright Board.
Determined by statute or
Royalty As per mutual agreement. Determined by the Copyright Board.
authority.
Licensing a novel for Broadcasting a song on Translating a textbook into a regional
Examples
publication. public radio. language.

4. Key Case Laws on Licensing

1. Super Cassettes Industries Ltd. v. Music Broadcast Pvt. Ltd. (2012):

o Established that statutory licenses under Section 31D apply to broadcasting organizations for
communicating sound recordings to the public.
2. Gramophone Co. of India Ltd. v. Mars Recording Pvt. Ltd. (2000):
o Reinforced the principle that compulsory licenses ensure public access while protecting the
economic interests of the copyright owner.
3. Entertainment Network India Ltd. v. Super Cassettes Industries Ltd. (2008):
o Highlighted the fair determination of royalties under statutory licenses.

5. Practical Implications

1. Voluntary Licensing:
o Ideal for regular commercial transactions, such as publishing, adapting, or broadcasting
copyrighted works.
2. Statutory Licensing:
o Enables broader access to works for educational and research purposes while compensating
the copyright holder.
3. Compulsory Licensing:
o Ensures public access to works that are otherwise unavailable, especially in areas like
education, accessibility, and broadcasting.

Role of Copyright Societies in the Administration of Copyright (Sections 33–36A of the Copyright Act,
1957)

Copyright societies are organizations that manage and administer the rights of copyright owners on a collective
basis. Their primary role is to grant licenses, collect royalties, and distribute them among copyright holders.
Sections 33 to 36A of the Copyright Act, 1957, govern the establishment, functioning, and regulation of
copyright societies in India.
1. What are Copyright Societies?

 Defined under the Copyright Act, 1957, a copyright society is a registered organization authorized to
collectively manage copyright on behalf of owners.
 They primarily handle literary, dramatic, musical, and artistic works, including sound recordings
and cinematograph films.

2. Statutory Provisions Related to Copyright Societies

Section 33: Registration of Copyright Societies

1. Requirement for Registration:

o Only a registered copyright society can issue licenses and collect royalties on behalf of
copyright owners.
o Registration is granted by the Central Government after ensuring the society meets statutory
requirements.
2. Scope of Representation:
o A copyright society must represent a specific class of works, such as musical works, sound
recordings, or literary works.
3. Single Society Per Category:
o Only one copyright society is allowed for a specific category of work.

Section 34: Administration by Copyright Societies

1. Authorization:
o Copyright owners must authorize the society in writing to manage their rights.
o The copyright society acts as an agent of the copyright owner.
2. Licensing and Collection:
o The society grants licenses for the use of works, collects royalties, and distributes the proceeds
among members.
3. Fair Distribution:
o Royalties are distributed equitably among the members after deducting administrative
expenses.

Section 35: Control Over Copyright Societies

1. Governance:
o Copyright societies are governed by a governing body, including representatives of authors
and copyright owners.
2. Transparency:
o Societies must maintain detailed accounts and provide periodic reports to members and the
Central Government.
3. Oversight:
o The Central Government oversees the functioning of copyright societies to prevent abuse or
unfair practices.

Section 36: Tariff Schemes

 1. Tariff Publication:
o Copyright societies must publish a tariff scheme specifying the licensing terms and royalties
for using works.
2. Challenges to Tariffs:
o Users of copyrighted works can challenge the tariffs before the Copyright Board if they find
them unreasonable.

Section 36A: Rights of Owners Against Copyright Societies

1. Revocation of Authorization:
o Copyright owners can revoke their authorization if the society fails to act in their best
interests.
2. Representation Rights:
o Copyright owners have the right to be represented on the governing body of the society.

3. Functions of Copyright Societies

1. Licensing and Monitoring:

o Issue licenses for public performance, broadcasting, or reproduction of works.
o Monitor the use of works to prevent unauthorized exploitation.
2. Royalty Collection and Distribution:
o Collect royalties from users and distribute them among members (authors, composers,
publishers).
3. Legal Enforcement:
o Enforce copyright by taking action against infringers on behalf of members.
4. Dispute Resolution:
o Act as a mediator between copyright owners and users to resolve licensing disputes.
5. Awareness and Advocacy:
o Promote awareness about copyright and the importance of licensing among creators and users.

4. Examples of Copyright Societies in India

1. Indian Performing Right Society (IPRS):

o Represents authors, composers, and publishers of music.
o Handles licensing for public performance, broadcasting, and reproduction of musical works.
2. Phonographic Performance Limited (PPL):
o Manages sound recording rights and issues licenses for playing music in public spaces.
3. Society for Copyright Regulation of Indian Producers for Film and Television (SCRIPT):
o Represents producers of films and television shows.
4. Indian Reprographic Rights Organisation (IRRO):
o Handles rights related to photocopying and reproduction of literary works.

5. Key Case Laws

1. Indian Performing Right Society Ltd. v. Eastern Indian Motion Pictures Association (1977):
o Clarified the role of copyright societies in collecting royalties and licensing music for use in
cinematograph films.
2. M/S Leopold Cafe v. Phonographic Performance Ltd. (2010):
 o Affirmed that public performances of music in commercial spaces (e.g., cafes) require licenses
from copyright societies.
3. IPRS v. Aditya Pandey (2011):
o Highlighted the importance of transparency and fair royalty distribution by copyright
societies.

6. Benefits of Copyright Societies

1. Efficient Management:
o Simplifies the process of licensing and royalty collection for copyright owners.
2. Fair Compensation:
o Ensures authors and creators receive their fair share of revenue for the use of their works.
3. Legal Protection:
o Provides collective enforcement of copyright against infringers.
4. Transparency:
o Published tariffs and reports ensure accountability in the administration of copyright.

7. Challenges and Criticisms

1. Monopoly Concerns:
o Allowing only one society per category may lead to monopolistic practices.
2. Royalty Distribution Disputes:
o Concerns over delayed or inequitable distribution of royalties.
3. Administrative Costs:
o High administrative fees reduce the share received by authors and creators.