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Indrani Dutta

Kolkata , Nov. 19

AIR India has paid Rs 26 lakh to PPL, a copyright protection society, for playing recorded music on its flights. The amount covers the period 2002 to 2004, boosting not only PPL's revenue kitty but also its morale.

Sources said while all carriers had been paying PPL licence fees for playing music at terminals as well as during embarkation and disembarkation, only AI had to pay an additional amount since it played music on its flights as part of in-flight entertainment.

AI had been paying a much lower rate earlier (about Rs 40,000 annually), but PPL recently realised that it could garner far more resources for the music industry since international rates were far higher. The payout by AI represents an enhancement of rates as well as charging licence fees for in-flight music (not charged earlier), the sources said.

Mr S. Chowdhury, Business Manager, PPL, told Business Line that the society, which is now in an aggressive mode, shares its revenues with members in the music industry. While 85 per cent of the revenue is ploughed back into piracy-ridden music companies, including Saregama, Tips, Virgin and Universal, 15 per cent is retained by PPL.

PPL is a copyright society in respect of sound recordings. It is registered with the Union HRD Ministry and works on the strength of the India Copyright Act, 1957, which stipulates that a public performance licence has to be acquired before playing music in a public place. The society acts on behalf of its 60-strong members, i.e. the music companies that have assigned their rights to PPL, which enforces this legal requirement in respect of public performances, broadcasting as well as telecasting. Recently, it brought cell-phone companies within its ambit and is now tracking TV channels and FM radio stations.

PPL has identified as its two main revenue streams the licence fee payment for using recorded music on TV channels and radio channels. According to Mr Vipul Pradhan, PPL CEO, there has been a 30 per cent growth in revenues from this sector. He said with 22 private FM stations, nine such stations owned by the Government, and 32 Vividh Bharati stations plus 200 medium wave stations, broadcasting licence fees were now big business as they were the largest music players.

The TV channels, too, are liable to pay for the recorded music that they play during telecasts. Most of the channels have paid up for using music clippings during programmes, but sectors remain untapped and discussions are on with regional channels and cable operators, Mr Chowdhury said.

However, it is the event category that PPL officials are looking forward to in the ensuing season of year-end festivities. "We plan to go very tough on clubs, hotels and even educational institutions which play music as part of entertainment," he said, adding that infringement attracts a heavy penalty.

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