Spotify has just made one of their biggest announcements in recent times. This announcement was the launch of its music streaming services in India, finally. With the launch, Spotify also made deals with several media houses in India such as T-Series and Sony. However, it is known that the company could not finalize a deal with Warner/Chappell. Also, we know that Warner/Chappell owns rights to many of the famous albums as well as artists.
Therefore, Spotify came into trouble for using Warner/Chappell’s content on their platform. Warner/Chappell’s lawyers have claimed that Spotify is unauthorized to use their content in India, as of now. As a part of this, Warner/Chappell filed a copyright case against Spotify. However, Spotify decided to launch its services even with a pending copyright case.
Due to this case in the Bombay High Court, the court has ruled Spotify to deposit money in the court. The Bombay High Court has directed the company to deposit an amount of Rs. 6.5 Crores to the court. This is because Warner/Chappell Music Limited filed a suit along with a motion seeking an interim injunction to restrain Spotify from publishing its songs on the app without a license.
Spotify has told publicly that they have been in negotiations with Warner/Chappell group for months. But it was not possible to ink a deal between them. The company claims that it could offer the songs on its platform pursuant to its application for obtaining a statutory licence under Section 31 D of the Indian Copyright Act.
On the other hand, Warner/Chappell’s lawyers claim that Section 31 D would apply only to broadcasting organisations. The lawyers further added that even if Spotify invokes Section 31 D, they can only communicate the works, and not to reproduce them. Bombay High Court has scheduled the next hearing in this case for March 25.