In 2025, the Indian music industry is booming. Platforms like Spotify, JioSaavn, Gaana, and YouTube Music have made it possible for listeners across the country to stream millions of songs at the click of a button. But behind the catchy tunes and viral hits lies a complex legal mechanism that ensures the people who create music are rightly compensated. This mechanism is called statutory licensing, and it’s vital to understand how it works in India if you are an artist.
The Problem: Balancing Accessibility with Artist Rights
Before digital streaming took over, music distribution was relatively straightforward. A record label would produce and distribute CDs or tapes, and royalties would be paid to artists according to contracts. But with streaming, millions of plays happen every day, often across multiple platforms.
Without a legal framework, creators could easily be left unpaid, while platforms profit from their work. Statutory licensing was introduced to bridge this gap, ensuring both accessibility for the public and protection for artists’ rights.
Enter Statutory Licensing: Section 31D of the Copyright Act
Section 31D was introduced in 2012 to let radio and television broadcasters use copyrighted works without individual negotiations, provided they pay royalties. While some court rulings have suggested that online streaming platforms may also use this provision, the issue remains legally debated and not fully settled.
Platforms that can use Section 31D:
● Radio stations (like FM and All India Radio)
● Television channels (like Doordarshan or music TV channels)
● Some internet radio services (non-interactive)
These are treated as broadcasters and are covered under the law.
What about Spotify, JioSaavn, YouTube Music?
These are on-demand streaming services, where users choose what to play. Whether they fall under Section 31D is still legally debated.
In practice, services like Spotify and JioSaavn do not rely on Section 31D. Instead, they sign private licensing agreements with:
● IPRS for lyrics and compositions
● Record labels or PPL India for sound recordings
What This Means for Artists
You get royalties from radio and TV through IPRS/PPL under Section 31D.
For Spotify and other streaming apps, your royalties come from direct licensing deals usually via IPRS, your label, or your distributor.
Knowing how your music is licensed helps you understand where your earnings come from and how to protect your rights.
How Statutory Licensing Works in Real Life
To make statutory licensing effective, India relies on Collective Management Organizations (CMOs):
1. Indian Performing Right Society (IPRS)
a. Represents composers, lyricists, and music publishers.
b. Licenses public performances and digital streaming, collecting royalties for creators.
2. Phonographic Performance Limited (PPL India)
a. Represents record labels and sound recording rights holders.
b. Licenses music for public performance in venues, events, and streaming platforms.
3. Here’s how it plays out in practice:
a. A platform like Spotify wants to stream thousands of songs.
b. Instead of negotiating with each artist, they pay IPRS or PPL India under statutory licensing agreements.
c. CMOs distribute the royalties to the rightful creators.
d. Both the platform and the artist are legally protected.
This system ensures that artists get compensated, platforms operate within the law, and listeners enjoy uninterrupted music.
Why Statutory Licensing Matters
Statutory licensing is more than just a legal formality, it’s a safeguard for the music ecosystem:
● For Artists: Guaranteed compensation without negotiating individually with multiple platforms.
● For Platforms: Legal certainty and streamlined royalty payments.
● For Listeners: Access to vast music libraries without infringing copyright.
It’s a win-win-win situation that keeps the industry sustainable.
Challenges and the reality of implementation
No system is perfect. Despite statutory licensing:
● Royalty Delays: Independent artists often face delays or unequal payouts.
● Transparency Issues: Platforms’ methods for counting streams and calculating payments can be opaque.
● Enforcement Gaps: Smaller streaming services sometimes bypass licensing due to weak enforcement.
Experts argue that stricter oversight and clear reporting standards are needed to make statutory licensing fully effective in India.
Why Every Artist and Platform Should Care
Statutory licensing is the backbone of legal music streaming in India. It balances the interests of creators, platforms, and listeners, ensuring fairness and sustainability.
For artists, understanding statutory licensing means knowing how to get paid for your work. For platforms, it’s about operating legally and avoiding copyright disputes. And for the audience, it guarantees access to music without compromising artist rights.
