Delhi High Court: Charging Excessive Fee to Play Songs Constitutes Refusal of Licence Under Copyright Act

The Delhi High Court has held that demanding unreasonably high fees for using copyrighted music amounts to a constructive refusal to license under Section 31 of the Copyright Act, 1957.

The case arose when Al Hamd Tradenation sought to play music at a small corporate event. Phonographic Performance Limited (PPL) demanded ₹55,440 for 1-150 attendees. Al Hamd offered ₹16,500, as only 50 guests were expected, which PPL rejected, prompting Al Hamd to file a case. 

The Court found the fee arbitrary and against market norms, stating that such inflexibility may justify granting a compulsory licence.

The Court also noted that PPL, not being a registered copyright society, cannot impose its own tariff rates. Next Hearing on May 29, 2025