Streaming platforms and Copyright Licensing

November 21, 2023

This Article has been written by Ms. Simran Pathan, a Third-year student of Balaji Law College, Pune

Abstract:

Over the past several decades, India’s entertainment sector has expanded rapidly. The advent of the internet era has completely transformed almost all sectors, including finance, education, entertainment, and industry.The accessibility of access to internet services has given creators a strong platform on which to not only display their skills but also make use of their inventiveness. The rise in popularity of online streaming platforms may be attributed to the swift advancement of technology and the widespread availability of broadband connectivity in recent years. Netflix, Amazon Prime Video, Disney+ Hotstar, and other platforms are transforming the industry of entertainment by providing consumers with access to enormous collections of films, TV series, and original material. However, the emergence of internet streaming services has also given rise to certain copyright problems, particularly in India. We look at the complexities of copyright law and the difficulties Indian internet streaming services face in this Article.

Introduction

Video streaming has become a vital aspect of everyday life. having millions of people worldwide accessing content on platforms such as Netflix, Amazon Prime, and Hulu. Still, there has been an increase in copyright violations as a result of this. Dealing with copyright infringement in internet video streaming is one of the most challenging tasks due to the enormity of the problem. Because so many people use the internet to access content, it can be difficult to recognize and initiate legal action against individuals who are disseminating copyrighted items illegally. Furthermore, because internet streaming services are global, it might be challenging to enforce copyright laws because various countries may have differing regulations on the violation of intellectual property rights. For instance, it is imperative that all relevant stakeholders work together to develop tactics that successfully prevent copyright infringement in the streaming media industry. In order to prevent unauthorized access to copyrighted content, these methods should involve collaboration between streaming platforms and copyright holders, the development of innovative technologies to combat pirates, and awareness-raising and educational campaigns.

Understanding Copyright Law

A creator of an original piece of literature, music, film, or art is granted the legal privilege known as copyright. This prevents others from utilizing or profiting from artists’ work without permission and grants them the only right to copy, distribute, and exhibit their creations. The Copyright Act, of 1957, which establishes the legal foundation for defending intellectual property rights, governs copyright protection in India. All original literary, dramatic, musical, artistic, cinematographic, and sound recording works are protected by Section 13 of the Copyright Act 1957. Copyright shields expressions rather than ideas, in contrast to patents.

In order to put online streaming services and broadcasting under the jurisdiction of the Indian Copyright Act, 1957, Section 31 D was enacted in 2012. The legal framework and statutory license for the broadcasting of sound recordings and literary and musical works are provided under Section 31D.This Section, when combined with Rules 29 and 30 of the Copyright Rules 2013, allows any broadcasting company to utilize a compulsory license to transmit any previously published music or sound work to its audience.However, opinions on statutory licensing of online streaming services have differed, primarily because the term “internet streaming” is not included specifically in the 2013 Copyright Rules.

The Growth of Streaming Platforms and Their Challenges Within Intellectual Property.

In the era of online streaming services, one of the main legal difficulties confronting the entertainment business is tracking intellectual property (“IP”) rights. With the rise of services like Netflix, Disney+, and Hulu, which are now regarded as leading players in the industry, internet streaming services are going through a significant transition. The primary difficulty lies in monitoring the rights to tens of thousands of pieces of intellectual property—an unparalleled amount of material whose complexity necessitates the development of new procedures and tools to make tracking easier. It is critical in this regard to comprehend all of the intellectual property rights that are relevant to the streaming sector.

Another important instrument that streaming platforms employ to stay competitive in the industry is copyrights. “We also compete against entertainment video providers and content producers in obtaining content for our service, both for licensed streaming content and for original content projects,” Netflix stated in its 2019 Annual Report.On its platform, Netflix distributes and licenses content from several providers. This enables users to broadcast creative content protected by third-party intellectual property rights.In an attempt to address its licensing problem, Netflix has recently created a line of original television programs and movies called Netflix Originals. Being a content creator on its own gave Netflix the freedom to stand back from licensing agreements.

Balancing Competition and Copyright

It is difficult to strike a careful balance between defending content producers’ intellectual property rights and encouraging fair competition in the market when it comes to copyright and competitiveness in the streaming sector. Copyright rules are in place, on the one hand, to safeguard content producers’ exclusive rights over how their work is used and distributed. To lawfully disseminate their material, streaming services need to secure the necessary authorizations or licenses from copyright holders (Vishnu, 2023). Conversely, the purpose of competition laws is to safeguard consumers, avoid monopolies, and encourage fair competition in the market (Warrier, 2021). In order to draw subscribers, streaming services need to properly compete in the market by providing cutting-edge features, packages, and content. Nevertheless, certain streaming services could participate in anti-competitive activities, such exclusive content agreements, which might undermine fair competition in the industry.

Conflicts between competition laws and copyright laws provide a problem. One way that content providers might undermine fair competition in the market is by granting exclusive licenses to specific streaming services, so restricting the material’s availability to other services. Customers may have fewer options and pay more as a result of this. Furthermore, if streaming services disseminate copyrighted information without the required authority, they risk legal action and reputational damage for violating copyright.

Challenges Faced by Online Streaming Platforms in India

Distribution and Licensing

It is extremely difficult for online streaming services to get the licenses and distribution rights for the content they provide. Indian TV series and films are frequently co-produced by a number of people, including screenwriters, composers of music, directors, and producers, which makes getting the required permissions from everyone involved more difficult. It is challenging for streaming platforms to guarantee that content has the required rights before making it available to customers due to the absence of a centralized licensing process.

Unauthorized Content and Copyright Violations

In India, where there are many websites and platforms hosting pirated TV series and movies, piracy is a widespread issue. The availability of pirated content remains a challenge, impacting the overall growth and profitability of legitimate streaming platforms. These unapproved sources pose a threat to the revenue streams of legitimate streaming platforms and despite efforts by governments and content creators to curb piracy.

Content Created by Users

Users may publish and distribute many types of material, including song covers, drawings, and short films, on various streaming platforms. Although user-generated content can enhance user experience and platform engagement, copyright concerns are often brought up by it. Platforms must put in place strong mechanisms to monitor and stop the unlawful use of copyrighted content in User Generated Content as they may be held accountable for infringement on their platforms.

Advancements in Law and Judicial Pronouncements

In recent years, there have been several copyright cases pertaining to internet streaming services filed in Indian courts. These legal actions have brought to light the difficulties streaming services and content producers have when attempting to comply with intricate copyright regulations.

The case of Tips Industries Ltd. v. Wynk Music Ltd. & Others 2019 is one of the prominent case studies on copyright infringement and streaming services in India.

Facts : While Wynk is an internet service where users may pay a membership fee to access music, Tips is the owner of an Indian music label.

Wynk had been granted a license to use Tips’ music library; however, the license was revoked due to a disagreement between the parties on the licensing payments. As a result, Tips asked Wynk to take their repertoire down from Wynk’s website. In this sense, Wynk claimed to be a broadcasting institution and to be entitled to a statutory license under Section 31-D to convey the work to the public, using the protection provided by Section 31D of the Copyright Act. As such, Tips sued the Bombay High Court for copyright violation.

Judgment : With respect to online streaming,he Court ruled that, with regard to online streaming, the deliberate legislative decision to omit specific language in Section 31-D that would have allowed for a statutory license with regard to internet streaming and/or downloading means that internet broadcasters are not eligible for statutory licensing under that section.

Warner/Chapell Music Ltd. v. Spotify Ab 2019

Facts :

Spotify began talks with record labels, such as Warner Chappell Music Limited in order in order to acquire licenses for the numerous music labels that WCM has licensing rights to prior to its debut in India. Spotify kept streaming WCM’s songs even after they were Unable to come to an agreement. Spotify, in its capacity as a broadcaster, sent a notification to the Intellectual Property Appellate Board (IPAB) in 2019 requesting the use of the Section 31 D statutory license clause.Spotify provided evidence for their claim through an Office Memorandum that was certified as a broadcaster by the Department of Industrial Policy and Promotion (DIPP).

Judgment : The Bombay High Court directed Spotify to deposit a payment of Six Crore Fifty Lakhs with the High Court and requested that Spotify refrain from enforcing the statutory license until IPAB established the royalty and gave directives.

Another notable case is the legal conflict between Spotify and Lahiri Music Pvt. Inc. Lahiri Music has sued the music streaming company for copyright violation. The court decided in favor of Lahiri Music, concluding that Spotify lacked the required authorizations to stream the protected music from Lahiri Music. The case emphasizes how crucial it is to get the right permissions and the legal ramifications for streaming companies that fail to do so.

Another noteworthy broadcast included the well-known movie Padmavat, which generated a great deal of controversy before to its premiere. A number of organizations said the movie infringed on cultural rights and misrepresented historical events. In the end, the court denied these requests and gave the go-ahead for the movie’s distribution. The legal action brings to light the difficulties streaming services and filmmakers encounter when handling concerns that stem from cultural and historical sensitivities.

Conclusion:

Because they provide easy access to a wide variety of information, online streaming services are revolutionizing how we consume entertainment. For these sites, copyright concerns continue to be a significant obstacle, particularly in the Indian setting. Copyright rules need to be strictly followed because of the legal dangers associated with user-generated material, complicated licensing, copyright infringement, and subtitling and dubbing. In our opinion, platforms should collaborate with content producers and copyright holders as the online streaming market expands in order to guarantee a stable and legal ecosystem that upholds intellectual property rights and offers consumers a smooth entertainment experience.

In conclusion, the introduction of a new mode of content access by internet streaming services has revolutionized the entertainment industry. Nevertheless, copyright proprietors have had to pay more as a result of an increase in copyright breaches. It is important to comprehend the impact that copyright infringement has on the entertainment industry and to take appropriate measures to prevent it. With the help of legal frameworks and technical breakthroughs, we can guarantee that creators earn fair compensation even while viewers continue to enjoy their favorite TV series and movies on streaming platforms.

References : This Article was originally written by and published on the following websites. The link for the same is herein

CASE LAWS:

Tips Industries Ltd. v. Wynk Music Ltd. & Others 2019

Warner/Chapell Music Ltd. v. Spotify Ab 2019

Spotify and Lahiri Music Pvt. Inc

November 21, 2023