Music Licensing in India: PPL, IPRS and What Hotels, Restaurants and Businesses Must Pay

Walk into any hotel lobby, restaurant, café, retail store, or fitness centre in India and you will almost certainly hear music playing. Most business owners assume that paying for a music streaming subscription — or simply owning a CD — gives them the right to play that music publicly. It does not. Playing music in a commercial establishment for the benefit of customers is a "public performance" under Indian copyright law, and it requires specific licences from the rights holders. In 2025, the Delhi High Court issued a landmark ruling that fundamentally reshaped how these licences must be obtained — and businesses that have not updated their compliance need to act immediately.

Why Businesses Need a Music Licence

The Copyright Act, 1957 grants rights holders — composers, lyricists, performers, and record labels — the exclusive right to communicate their works to the public. Section 14 of the Act specifies that "communication to the public" includes playing a work in any place where the public is present. When a restaurant plays a Bollywood song for its diners, or a hotel lobby streams a playlist for its guests, that is a public communication of a copyrighted work — and it requires the authorisation of the rights holder.

Businesses that play music without a licence are liable for copyright infringement under Section 51 of the Act — exposing them to civil suits for damages and injunctions, and potentially criminal prosecution under Section 63, which prescribes imprisonment and fines. Enforcement actions — including surprise visits by licensing bodies and subsequent legal notices — are increasingly common in India's major cities.

Understanding the Two Separate Rights in Music

Every piece of recorded music contains two separate and legally distinct copyrights. First, the underlying musical and literary work — the composition and lyrics created by the composer and lyricist. Second, the sound recording — the specific recorded version of that composition, owned by the record label or producer who funded the recording. Playing a recorded song in public potentially requires permission from both rights holders — which is why there have historically been two separate licensing bodies operating in India:

• IPRS (Indian Performing Right Society): Licenses the underlying musical and literary work — protecting the rights of composers and lyricists
• PPL (Phonographic Performance Limited): Licenses the sound recording — protecting the rights of record labels

In practice, most commercial music use requires licences from both organisations — though the 2025 court ruling has significantly complicated PPL's ability to issue licences directly.

IPRS: The Indian Performing Right Society

The Indian Performing Right Society (IPRS) is a registered copyright society under Section 33 of the Copyright Act, 1957, established to administer the performing rights of composers, lyricists, and music publishers in India. IPRS is legally authorised to issue licences for public performances of musical and literary works, collect royalties on behalf of its members, and distribute those royalties to rights holders.

Businesses that want to play music publicly must obtain an IPRS licence. The licence covers the musical and literary works in IPRS's repertoire — which includes the vast majority of Indian film music, independent music, and international works administered through reciprocal agreements with foreign societies. The IPRS licensing process and fee schedule can be accessed through its official channels, and registration of copyright societies is governed by the Copyright Office at copyright.gov.in.

PPL: Phonographic Performance Limited

PPL (Phonographic Performance Limited) represents the sound recording rights of major and independent record labels in India — including T-Series, Sony Music, Universal Music India, and Warner Music India. Historically, PPL issued its own licences to businesses wanting to play recorded music publicly, collecting fees on behalf of its member labels. However, PPL operates as a trade association, not a registered copyright society under Section 33 of the Copyright Act. This distinction became the central issue in the landmark 2025 court ruling.

The 2025 Delhi High Court Ruling That Changed Everything

In a landmark 2025 judgment, the Delhi High Court held that only registered copyright societies can issue licences for the public performance of works and sound recordings in India. The Court struck down the independent licensing practices of PPL and Novex Communications (another music licensing intermediary), holding that their operations as unlicensed licensing agents violated Section 33 of the Copyright Act, which reserves the right to issue licences to copyright owners or to registered copyright societies.

The practical implications of this ruling are significant: PPL cannot issue valid public performance licences in its current form as a trade association. Record labels who were previously licensing through PPL must now either: register a new copyright society compliant with Section 33; issue licences directly through individual rights holders; or join IPRS (which has applied to expand its mandate to cover sound recordings as well as underlying works). Businesses that currently hold PPL licences should urgently review whether those licences remain legally valid in light of this ruling and seek updated legal advice.

Which Businesses Need Music Licences?

Any business that plays recorded music — or live music — in a place where the public is present needs a music licence. This includes hotels, restaurants, cafés, bars, and lounges; retail stores, shopping malls, and supermarkets; fitness centres, gyms, and yoga studios; beauty salons and spas; offices with common areas or waiting rooms where clients are present; airlines, trains, and other public transport; events, exhibitions, and conferences; and online platforms that stream music or allow music uploads. Playing music through a personal Spotify or YouTube subscription does not confer a public performance licence — these subscriptions are for personal use only.

Royalty Rates and How They Are Calculated

IPRS calculates licence fees based on several factors: the type of establishment (hotel, restaurant, retail, etc.), the category or star rating of the venue, the seating capacity, the geographic location, and whether the music is background or featured. Licence fees are structured as annual payments and can vary significantly based on these parameters. The Copyright Board (now the Intellectual Property Appellate Board's successor function, which has been transferred to the relevant High Court) has the power to set tariffs if rights holders and users cannot agree on reasonable rates.

For copyright registration and licensing guidance →, our team can help assess your business's specific music licensing requirements and navigate the current regulatory landscape following the 2025 ruling.

Conclusion

Music licensing in India is not optional — it is a legal obligation for any business that plays recorded music in a commercial setting. The 2025 Delhi High Court ruling has fundamentally disrupted the existing licensing framework, creating uncertainty around PPL licences and placing renewed importance on IPRS compliance. Every business that relies on background music should immediately audit its current licensing position, verify the validity of any existing PPL licences, and ensure IPRS compliance remains current. The risks of non-compliance — injunctions, damages, and criminal liability — are far more expensive than the cost of obtaining the right licences.

For advice on copyright compliance and music licensing for your business, contact Nikhil Soni & Co. →