The Ministry of Commerce & Industry has vide its Office Memorandum dated 21st August 2024 withdrawn the Office Memorandum dated 5th September 2016 which extended the Scope of Section 31D of Copyright Act, 1957, to Internet transmissions. Vide an Office Memorandum dated 5th September 2016, the Government of India had brought the internet broadcasting organisations within the purview of Section 31D of the Copyright Act, 1957 along with radio and Television broadcasting. However, in view of decision of the Division Bench of High Court of Bombay in the matter of Tips Industries Ltd. vs. Wynk Music Ltd. & Anr. (Commercial Appeal No. 424 and 425 of 2019), the Office memorandum dated 5th September 2016 has been rescinded vide Office Memorandum dated 21st August 2024.
The said decision is a major boost for the copyright holders as it becomes important to secure proper licenses before distributing copyrighted content online and it is likely to be a precursor for more stricter compliances. Meanwhile, the digital online platforms could face potential increase in the costs of obtaining their content and could impact the cost of sourcing and change the business model of these platforms.
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