Royalty issues to be discussed by radio channels with music industry

Royalty issues to be discussed by radio channels with music industrySince the Indian music industry and radio channels have decided to resume discussion on royalty charges, after their meeting with the ministry of information and broadcasting, it seems that differences between the Indian music industry and radio channels on royalty charges may vanish.

On 12th December, a meeting was held by the ministry with the music and radio industry's representatives, along with the registrar of copyrights and secretary, Human Resource Development, with the aim to start a new process for rationalizing music royalties for the radio channels.

IMI president Vijay Lazarus informed, "In the meeting, it was agreed that the Indian Music Industry (IMI) and radio channels will start a fresh process for discussion of rationalizing music royalties for radio."

Furthermore, it has also been agreed upon by the both parties that "sound recording rights" and "rights in musical/lyrical works" are separate and a license is required by the FM stations for both, not complying with which would be deemed an infringement of copyright.

The tiff between the two initiated when FM radio stations said that their earnings were being eaten by the steep royalties, especially those of smaller stations, making the business unviable, while music companies rejected the charge.

The copyright board has the final decision on royalties, which it hasn't passed till now.

Association of Radio Operators for India president and Radio City 91.1 FM chief executive Apurva Purohit reported, "FM broadcasters have reiterated (in the meeting) that exorbitant royalty fees are making the radio business unviable, especially in smaller cities."