Navigating Copyright Compliance in Indian Corporate Events: Legal Responsibilities and Protocols

Posted On - 27 August, 2024 • By - Himanshu Deora

In today’s business landscape, the use of copyrighted material—especially music—is commonplace in corporate events, advertisements, and even daily office activities. However, companies must navigate the complexities of copyright laws to avoid potential civil and criminal liabilities. This article outlines the protocols and procedures Indian companies must follow to ensure compliance with copyright laws and discusses the responsibilities and potential liabilities if employees use copyrighted material without the company’s consent.

Copyright law in India is governed by the Copyright Act, 1957, which provides legal protection to the creators of original works, including artistic work, musical work, literary work, cinematograph films, software etc. Any unauthorized use of copyrighted material can lead to severe consequences, including civil lawsuits and criminal prosecution. Companies must be vigilant in obtaining the necessary permissions and licenses before using copyrighted content.

  • Develop a Clear Policy: Companies should create a comprehensive copyright compliance policy that outlines the legal obligations and guidelines for using copyrighted material. This policy should be easily accessible to all employees and should detail the types of works covered by copyright and the need for obtaining proper licenses.
  • Employee Training: Regular training sessions should be conducted to educate employees about copyright laws and the importance of adhering to the compliance policy. Employees should understand the potential legal and financial risks associated with unauthorized use of copyrighted content.

2. Securing Licensing Agreements

  • Obtain Necessary Licenses: Before using copyrighted music or other materials, companies must obtain the appropriate licenses from copyright societies such as the Indian Performing Rights Society (IPRS) and Phonographic Performance Limited (PPL). These licenses grant permission to use copyrighted works for specific purposes, such as public performance at corporate events or background music in the office.
  • Event-Specific Licenses: For corporate events, companies may need to secure additional licenses tailored to the event’s nature and scale. This ensures that all intended uses of copyrighted material are covered, reducing the risk of infringement claims.

 3. Implementing Internal Approval Processes

  • Pre-Approval System: Companies should implement a pre-approval process where employees must seek permission before using any copyrighted material. This process ensures that all uses are vetted and that the necessary licenses are in place.
  • Designated Compliance Officers: A designated officer or a team, typically within the legal or compliance department, should oversee the approval process and ensure that all actions align with the company’s copyright compliance policy.

4. Monitoring and Enforcement

  • Monitor Usage: Regular monitoring of the use of copyrighted materials within the company is essential. This includes checking for unauthorized uses during corporate events, in marketing materials, and in daily office activities.
  • Enforcement Measures: Companies should establish clear consequences for employees who violate the copyright compliance policy. Disciplinary actions can range from warnings to termination, depending on the severity of the infringement.

5. Documentation and Record-Keeping

Maintain Comprehensive Records: Companies should keep detailed records of all licenses obtained, communications with licensors, and internal permissions granted to employees. This documentation is crucial for defending against potential copyright claims.

Civil and Criminal Liabilities

The Indian Copyright Act, 1957, provides for both civil and criminal liabilities in cases of copyright infringement. Companies must be aware of these liabilities to manage risks effectively.

1. Civil Liabilities

  •  Injunctions and Damages: If a licensor files a claim, they may seek an injunction to stop the unauthorized use of the copyrighted material. The company could also be liable for damages, including compensation for losses suffered by the licensor and an account of profits earned from the unauthorized use.
  •  Legal Costs: Defending against a copyright claim can be costly, with expenses related to legal fees, court proceedings, and potential settlements.

2. Criminal Liabilities

  • Penalties for Infringement: Under Section 63 of the Indian Copyright Act, copyright infringement can result in criminal prosecution, leading to penalties such as imprisonment for up to three years and/or fines. The severity of the penalty depends on the nature and extent of the infringement.
  • Vicarious Liability: Companies can be held vicariously liable for the actions of their employees if the infringement occurs within the scope of employment or during company-sanctioned events. This means that the company could face criminal charges if it is found to have facilitated or ignored unauthorized use.

3. Employee Responsibility

  •  Individual Liability: Employees who use copyrighted material without proper authorization can be held personally liable for infringement, especially if their actions are outside the scope of their employment or violate company policies.
  •  Internal Consequences: Companies may take disciplinary action against employees who engage in unauthorized use, depending on the company’s internal policies and the nature of the infringement.

Responsibility and Mitigation Strategies

1. Employer Responsibility

  • Proactive Compliance: Companies must take proactive steps to ensure compliance with copyright laws. This includes implementing the protocols outlined above and regularly reviewing and updating them to reflect changes in the law.
  •  Mitigating Liability: If unauthorized use is discovered, the company should act swiftly to rectify the situation. This may involve obtaining the necessary licenses, ceasing the infringing activity, and negotiating with the licensor to settle any claims.

2. Employee Responsibility

  •  Awareness and Adherence: Employees must be aware of the company’s copyright compliance policy and adhere to it strictly. They should seek approval before using any copyrighted material and avoid using such material for personal purposes in the workplace.
  • Consequences of Non-Compliance: Employees should understand the potential legal consequences of unauthorized use, including personal liability and disciplinary action by the company.

Conclusion

Navigating copyright compliance is essential for Indian companies, particularly in the context of corporate events and everyday business activities. By establishing robust protocols and procedures, securing appropriate licenses, and educating employees, companies can minimize the risk of copyright infringement. Understanding the potential civil and criminal liabilities and taking proactive steps to mitigate them are crucial to protecting the company’s legal and financial interests. Ultimately, a well-implemented copyright compliance strategy not only safeguards the company but also fosters a culture of respect for intellectual property rights.

Contributed by – Anupriya Alok

King Stubb & Kasiva,
Advocates & Attorneys

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