What are the Royalty Payment terms for Playing Songs on FM Radio India.
All Terms Explained: Music Royalty Definition for Community radio stations in India
In this article we will guide you about the Copyright of songs and Music royalty payment in India for playing on FM Radios. We will also guide you on the royalty definitions & Price Chart for Community Radio Stations India.
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Let’s have a Quick Look at the Structures for Community Radio & Royalty payments.
The Music Royalties has to be paid as per the size of the Organization in India.
Category ‘A’-‘Non-profit’ organizations like Civil Society and voluntary organizations registered under the societies act or any other relevant act.
Example of Category ‘B’– Universities, Deemed Universities, Professional & Technical Institutes/Colleges, Research Institutes.
The third Category ‘C’– Well established educational institutions.
Catagory wise List of Institution/Organization as below.
The below amounts are subject to minimum amount mentioned below or 5% of gross advertising revenue whichever is higher is payable as royalty payment.
You can find more information on the Official Website of IPRS (Indian Performing Right Society)– http://www.iprs.org
The type of FM Radio that is operated in the community is called as Community Radio Station. Its objective is to serve the community of a specific service area. The CRS has a different royalty payment structure in India as compared to commercial FM Radios.
The CRS not only allows a greater participation by the civil society on issues relating to development & social change, but also it can broadcast programmes relevant to the educational & Social developmental. It caters to the cultural needs of the community along with some entertainment through playing Music. The General objectives of the community radio is to give voice to the people who normally have no access to the mass media nor opportunity to express their views on community development. A Community Radio station is aimed at covering an area of 5-10 km radius and is governed as per policy and guidelines set by Ministry of Information & Broadcasting, Government of India.
This royalty payment tariff applies to the Public Performance of Music on CRS within a specified geographical community by Non-profit Organizations/Universities and well established educational Institutions for non-commercial broadcast with a non profit objective.
General Terms & Conditions:
This Tariff of Royalty Payment is subject to the Society’s General Conditions Applicable to Tariffs and Licenses.
The Institution/Organization shall be ‘Non-Profit’ entity. Simultaneously, it shall not undertake transmission of sponsored programmes except the programmes sponsored by Central & State Governments and other organizations to broadcast public interest information.
The Organization shall undertake limited advertising and announcements relating to local events, local businesses and services and employment opportunities and the maximum duration of such limited advertising shall not exceed 5 (Five) minutes per hour of broadcast.
The Institution shall not exceed 120 minutes of playtime of music in a day.
Broadcast by Community Radio station shall be restricted to an area of 5-10 km radius.
This license will terminate automatically and immediately if the station engages in any commercial broadcasting; or if, for any reason, licensee fails to maintain its Ministry of Information and Broadcasting license as required.
Categorization of Institution/Organization:
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Applicability of Tariff for Royalty Payment
This Royalty definition of Tariff replaces all previous versions and comes into force from 1st April 2005 and applies to all royalties falling due on or after that date.
“Non-Compliant Licensees who seek to regularize past infringements / violations / breach of Society’s rights and licenses (including non-compliance with agreements, usage without license, vexatious litigation, etc), a penalty of 30% over the existing tariff shall be applied at the discretion of Society, where as compliant licensees will be charged license fees at a rate discounted at 5% at the discretion of the Society”.
On each anniversary of this Tariff there will be an upward revision by 10% for the next 3 years.
All Royalties are exclusive of all taxes/levies and are charged in advance.
IPRS distributions are made 4 mes a year, in June, September, December and March for the revenues
collected in form of royalty payments in the previous Indian fiscal 1st April to 31st March. Each distribution contains various components (e.g. Radio, TV). The distribution cycles for most, but not all, major revenue sources are
shown below .
What do you need a licence for?
Public Performance & their Royalty Payment structure
Licences that cover music when played at one of the following:
- Arcades,Multiplexes And Shopping Plaza, IT/Infotech Centers/Parks/Industries/Automobile Showrooms
- Amusement Park
- Hotels & Guest Houses, Rooms, Lodges, Motels, Holiday Homes Any such Other Boarding and Lodging Premises And Clubs (Irrespective Of Their Category)
- Event-LP/DJ(Recorded Music) Performances At Venus/Premises
- Pub and Disco
- Restaurants, Bars, Lunch Homes, Coffee Shops, Dinning Rooms, Lounges, Cafes, Office Canteens, Eating Houses And All Premises Of Similar Nature
- Retail Premises
- Standalone Commercial Banquets And Auditoriums
- Service Oriented Premises
- Travelling Passengers Waiting Premises
- Transportation Services
Royalty Payments for Streaming & Physical Mediums
- Utilization By Cinematography Films On Physical Medium And Electronic Digital Medium By Sale-Download Renting Streaming
- Internet Non Interactive Music Streaming Services
- Internet Interactive Music Streaming Services
- Karaoke Service on Internet
- Utilization By Sound Recording On Physical Medium Or Electronic-Digital Medium By Sale-Electronic Digital Download