30th aug, 2010

Interesting Indian decision on music royalties

I don’t read many Indian IP decisions but when I read this one on Spicy IP I was fascinated.
In short the Copyright Board has set the royalty rate of playing music on the radio in India to 2% of the net advertisement earnings of each FM radio station.
The FM station had complained about the very high royalty rate for playing music. The rate was set to  20% of net advertisement revenue related to music. The recording industry actually claimed that the revenue was set so high because the radios hurt the sales of CD´s. This pretty wind and un supported claim was dismissed.
The case is interesting because the court sets a broad royalty figure in a case where the recording industry was demanding a high royalty.

Could the same happen in Europe?

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