Vodafone Idea Limited Vs. The Indian Performing Right Society Limited :08.05.2026:., A.O (COM) No. 17 of 2024: 2026:CHC-OS:170-DB, CalHC:Hon’ble Justice Debangsu Basak and Hon’ble Justice Md. Shabbar Rashidi
The Calcutta High Court reaffirmed the royalty rights of authors and composers under the Copyright (Amendment) Act, 2012. The Division Bench held that telecom operator Vodafone Idea could not commercially exploit underlying musical and literary works embedded in sound recordings for its value added services such as caller tunes and ring tones without obtaining authorization from The Indian Performing Right Society (IPRS).
The dispute arose from competing claims between Vodafone, IPRS and Saregama India Ltd regarding royalty payments for use of copyrighted musical and literary works contained in sound recordings.
The Court examined the effect of the 2012 amendments to the Copyright Act, 1957 and held that the amendments created a “paradigm shift” by statutorily protecting authors and composers and ensuring their entitlement to royalties whenever sound recordings are commercially exploited, except limited exhibition in cinema halls.
Rejecting Vodafone’s contention that licences obtained from Saregama were sufficient, the Court ruled that music companies do not possess legal authority to independently license underlying literary and musical works in derogation of rights vested in IPRS and authors.
The Bench further held that agreements contrary to Sections 18 and 19 of the Copyright Act would be void. Consequently, the Court upheld the earlier order of the Single Judge, directed release of deposited amounts to IPRS subject to undertaking, dismissed Vodafone’s appeals and refused stay of the judgment.
Disclaimer: Donot treat this as substitute for legal advise as it may contain subjective errors.
Written By: Advocate Ajay Amitabh Suman, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi
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Vodafone Idea Limited v. The Indian Performing Right Society Limited & Anr.: Calcutta High Court Clarifies Royalty Rights of Authors and Composers in Commercial Exploitation of Sound Recordings
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Vodafone Idea vs IPRS Judgment 2026: Calcutta High Court Upholds Royalty Rights of Authors and Composers
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Authors’ Rights in Musical and Literary Works
Introduction:
The decision of the Calcutta High Court in is an important development in Indian copyright jurisprudence concerning the rights of authors, lyricists and composers in musical and literary works incorporated into sound recordings. The judgment was delivered on May 8, 2026 by a Division Bench comprising Justice Debangsu Basak and Justice Md. Shabbar Rashidi in A.O (COM) No. 17 of 2024 and APOT No. 300 of 2024. The Court examined the impact of the Copyright (Amendment) Act, 2012 and clarified whether telecom operators commercially exploiting songs through caller tunes, ring tones and value added services are required to obtain separate licences from the Indian Performing Right Society (IPRS) even when licences are already obtained from music companies such as Saregama.
The judgment is significant because it discusses the distinction between rights in a sound recording and rights in the underlying literary and musical works embodied within that sound recording.
The Court held that the 2012 amendments introduced a major change in law by protecting authors and composers and ensuring their continuing entitlement to royalties whenever such works are commercially exploited. The ruling also clarifies the legal role of copyright societies such as IPRS and limits the authority of music labels to independently license underlying literary and musical works contrary to statutory protections available to authors.
Factual and Procedural Background:
The litigation arose out of disputes relating to Value Added Services (VAS) provided by Vodafone Idea Limited to its telecom subscribers. These services included caller tunes and ring tones using film and non-film songs. Vodafone entered into licensing arrangements with Saregama India Limited, a music company engaged in production and distribution of sound recordings. Vodafone contended that by obtaining licences from Saregama, it had lawfully acquired rights to commercially exploit sound recordings and no further licence or royalty payment was required to be made to IPRS.
Three suits were filed before the Calcutta High Court. Vodafone filed an interpleader suit being CS No. 23 of 2018 against Saregama and IPRS seeking adjudication regarding competing royalty claims. Saregama filed CS No. 155 of 2018 seeking injunction against Vodafone from exploiting copyrighted sound recordings without authorization. IPRS filed CS No. 210 of 2018 seeking injunction against Vodafone from communicating to the public the repertoire of literary and musical works administered by IPRS without payment of royalties.
During the pendency of proceedings, several interim orders were passed. On October 1, 2018, the Court restrained both Saregama and IPRS from raising royalty claims against Vodafone subject to Vodafone depositing Rs. 3.5 crores with the Registrar, Original Side of the Calcutta High Court. Another order dated October 12, 2018 permitted Vodafone to continue its VAS operations upon depositing Rs. 2.5 crores. Subsequently, Vodafone and Saregama entered into settlement agreements dated September 20, 2019 and other renewal agreements which were brought on record.
The learned Single Judge by judgment dated May 17, 2024 held that IPRS possessed independent rights in underlying literary and musical works and issued directions protecting those rights. Vodafone challenged that decision before the Division Bench leading to the present appeals.
Dispute Before the Court:
The principal dispute before the Court concerned the effect of the Copyright (Amendment) Act, 2012 on royalty rights of authors and composers. Vodafone argued that once a licence for the sound recording had been obtained from Saregama, no separate licence from IPRS was required for use of caller tunes and ring tones. Vodafone relied upon earlier judicial precedents including AIR 1974 Cal 257, Eastern India Motion Pictures Association v. Indian Performing Rights Society and the Supreme Court judgment reported in (1977) 2 SCC 820, Indian Performing Rights Society Ltd. v. Eastern India Motion Pictures Association. Vodafone contended that producers and music companies continued to remain owners of composite sound recordings and therefore licences granted by them were sufficient.
IPRS on the other hand argued that the 2012 amendments fundamentally altered the law and created statutory protection in favour of authors and composers. IPRS contended that rights in underlying literary and musical works continued to subsist independently under Section 13(1)(a) of the Copyright Act, 1957 and that separate authorization from IPRS was mandatory for commercial exploitation of those works. IPRS further argued that agreements between Vodafone and Saregama acknowledged Vodafone’s obligation to obtain licences from IPRS and that Saregama lacked legal competence to assign or license rights already vested with IPRS under valid assignment deeds.
The Court therefore had to decide three important questions. First, whether the 2012 amendments permit IPRS to claim royalties for underlying musical and literary works in sound recordings when commercially exploited. Second, whether music companies like Saregama have authority to grant licences in respect of such underlying works. Third, whether Vodafone possessed a valid licence permitting commercial exploitation of those works without authorization from IPRS.
Reasoning and Analysis of the Court:
The Division Bench undertook an extensive examination of the Copyright Act, 1957 and its amendments. The Court particularly focused upon Sections 13, 14, 17, 18 and 19 of the Act. The Court observed that Section 13 separately recognizes copyright in literary works, musical works and sound recordings. Therefore, rights in underlying literary and musical works do not disappear merely because they are incorporated into a sound recording.
The Court emphasized Section 13(4), which specifically states that copyright in a sound recording shall not affect separate copyright in any work in respect of which the sound recording is made. According to the Bench, this provision clearly recognizes the independent existence of rights in literary and musical works embedded within sound recordings.
The Court then examined the effect of the Copyright (Amendment) Act, 2012. It noted that the amendments were introduced after considering developments under international copyright treaties including the WIPO Copyright Treaty, 1996 and the WIPO Performances and Phonograms Treaty, 1996. The statement of objects and reasons behind the amendments reflected legislative intent to strengthen protection for authors and composers against commercial exploitation of their works without fair royalty sharing.
Particular emphasis was placed upon the third and fourth provisos to Section 18(1) inserted through the 2012 amendments. The Court observed that these provisos prohibit authors of literary and musical works from assigning or waiving their right to receive royalties except in limited circumstances. Any agreement contrary to these protections would be void. Similarly, Sections 19(9) and 19(10) ensure that assignments for creation of cinematograph films or sound recordings do not affect the author’s right to claim equal share of royalties for commercial utilization of such works.
The Court described the amendments as bringing a “paradigm shift” in Indian copyright law. According to the Bench, authors and composers are now statutorily protected and entitled to receive royalties whenever sound recordings are commercially exploited outside limited exceptions such as exhibition of films in cinema halls.
The Court also discussed several important precedents. The Bench analyzed Eastern India Motion Pictures Association v. Indian Performing Rights Society, AIR 1974 Cal 257 and the Supreme Court decision in Indian Performing Rights Society Ltd. v. Eastern India Motion Pictures Association, (1977) 2 SCC 820. The Court noted that these judgments were delivered before the 2012 amendments and therefore reflected the earlier legal position under which producers often became first owners of copyright.
The Court further referred to The Indian Performing Rights Society v. Aditya Pandey, 2011 SCC OnLine Del 3113 and the appellate judgment reported in 2012 SCC OnLine Del 2645. The Court also examined International Confederation of Societies of Authors and Composers (ICSAC) v. Aditya Pandey & Ors., (2017) 11 SCC 437. The Supreme Court in ICSAC had recognized the distinction between assignment of copyright and grant of licence and acknowledged that after June 21, 2012 authors retained rights to equal share of royalties notwithstanding assignment for creation of sound recordings.
The Bench also discussed Entertainment Network (India) Limited v. Super Cassette Industries Limited, (2008) 13 SCC 30 and subsequent Delhi High Court judgments concerning broadcasting rights and royalty claims. However, the Calcutta High Court clarified that the legal position after the 2012 amendments must be interpreted in light of statutory protections specifically introduced for authors and composers.
The Court rejected Vodafone’s argument that agreements with Saregama extinguished IPRS rights. The Bench held that agreements between Vodafone and Saregama could not override statutory provisions under Sections 18 and 19. The Court further observed that some agreements themselves acknowledged Vodafone’s obligation to obtain licences from IPRS. Therefore, Vodafone could not commercially exploit underlying musical and literary works without express authorization from IPRS.
Final Decision of the Court:
The Division Bench answered the first issue in favour of IPRS and held that the Copyright (Amendment) Act, 2012 allows IPRS to claim royalties in respect of underlying literary and musical works in sound recordings whenever such sound recordings are commercially exploited.
On the second and third issues, the Court held that Saregama and other music companies do not possess legal authority or competence to independently grant licences for commercial exploitation of underlying literary and musical works contrary to rights vested in IPRS and authors. The Court further held that Vodafone did not possess valid licence to commercially exploit such works without authorization from IPRS.
Accordingly, the Court dismissed Vodafone’s appeals, upheld the judgment of the learned Single Judge and directed that monies deposited before the Court be released to IPRS subject to undertaking regarding refund if required after final adjudication. Vodafone’s prayer for stay was also refused.
Point of Law Settled by the Judgment:
The judgment settles an important point of copyright law in India by clarifying that after the Copyright (Amendment) Act, 2012, authors and composers retain enforceable statutory royalty rights in literary and musical works incorporated within sound recordings. Commercial exploitation of such works through caller tunes, ring tones, broadcasting or similar services requires proper authorization from the copyright society administering those rights, namely IPRS, and licences obtained solely from music companies owning sound recordings are insufficient.
The decision also confirms that statutory protections introduced under Sections 18 and 19 of the Copyright Act override private contractual arrangements inconsistent with authors’ royalty rights.
CaseTitle: Vodafone Idea Limited v. The Indian Performing Right Society Limited & Anr. and Vodafone Idea Limited v. Saregama India Limited & Anr.
Date of Judgment: May 8, 2026
Case Numbers: A.O (COM) No. 17 of 2024 and APOT No. 300 of 2024
Neutral Citation: 2026:CHC-OS:170-DB
Court: High Court at Calcutta, Commercial Appellate Division, Original Side
Coram: Hon’ble Justice Debangsu Basak and Hon’ble Justice Md. Shabbar Rashidi
Disclaimer: Readers are advised not to treat this as substitute for legal advise as it may contain errors in perception, interpretation, and presentation.
Written By: Advocate Ajay Amitabh Suman, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi
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Headnote
The Calcutta High Court held that after the Copyright (Amendment) Act, 2012, authors and composers of literary and musical works embedded in sound recordings possess independent statutory rights to receive royalties whenever such sound recordings are commercially exploited. The Court ruled that licences obtained from music labels owning sound recordings do not dispense with the requirement of obtaining authorization from IPRS for commercial exploitation of underlying literary and musical works. Agreements contrary to Sections 18 and 19 of the Copyright Act, 1957 were held void to the extent they extinguish statutory royalty rights of authors and composers.
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