Introduction

The music and film industries have undergone a dramatic transformation in recent years. Technological advances, digital platforms, and affordable production tools have enabled a new wave of entrepreneurs and artists to create, distribute, and monetize creative content. Start-ups have emerged in all parts of the value chain—music labels, film production houses, streaming platforms, talent management agencies, post-production services, and digital distribution networks. However, despite the creativity and innovation driving these enterprises, the foundation of their business models rests on legal rights—most importantly, copyright and licensing. For any music or film start-up in India, understanding copyright ownership, rights clearance, and licensing mechanisms is not merely a compliance requirement; it is an operational necessity.

Copyright law forms the legal backbone of the entertainment industry. Every song, film, soundtrack, script, or visual element embodies creative expression that is protected under the Indian Copyright Act, 1957. This law governs who owns creative works, how those works can be used, and what permissions or licenses are needed for commercial exploitation. For start-ups in music and film, lack of understanding of copyright and licensing can lead to significant legal disputes, financial liabilities, and reputational harm. Therefore, a comprehensive understanding of copyright principles, ownership rules, and licensing practices is indispensable.

This article explores the copyright and licensing requirements for music and film start-ups in India. It explains how copyright operates, who owns various components of creative works, the different kinds of rights involved, the licensing mechanisms available, the role of copyright societies, and the significance of compliance in digital and global distribution. The discussion aims to equip creative entrepreneurs with a deep legal understanding to build sustainable, rights-compliant businesses in India’s fast-growing entertainment sector.

Understanding Copyright in Music and Film

Copyright is a form of intellectual property that protects original expressions of ideas, not ideas themselves. In the context of music and film, copyright grants creators exclusive rights over their works. These rights include the right to reproduce, distribute, perform, communicate to the public, and make adaptations or translations. The Indian Copyright Act, 1957, extends protection to literary, dramatic, musical, and artistic works, as well as cinematograph films and sound recordings. A key feature of copyright is that it arises automatically upon the creation of an original work, provided it is expressed in a tangible form. Registration of copyright is not mandatory but is highly advisable because it serves as evidence in legal disputes.

In music, copyright protection applies to multiple components: the lyrics (a literary work), the musical composition (a musical work), the sound recording (a separate work), and even the performance (protected as a performer’s right). In films, copyright covers the script (literary work), music (musical work), dialogues (literary work), cinematography (cinematograph film), background score (sound recording), and visual artistic elements. Each of these components can have separate ownership, meaning that a film or music start-up must deal with multiple rightsholders.

The law gives the copyright owner exclusive rights to authorize the use of the work in various forms. Any unauthorized use constitutes infringement. Therefore, every business model in the music and film industry—production, distribution, streaming, synchronization, or performance—depends upon obtaining proper licenses from the relevant copyright owners.

Ownership of Copyright in Music and Film

Determining ownership is the first step before any licensing or commercial exploitation. In the case of music, ownership depends on the relationship between the creators and the commissioning entity. The lyricist owns the literary work, the composer owns the musical work, and the producer or label that funds the sound recording owns the copyright in the sound recording, unless there is a written agreement transferring ownership.

For example, when a composer creates a tune for a film, the film producer often becomes the first owner of the music used in the film because it is created under a contract of service or commissioning arrangement. Similarly, if a recording artist performs a song under a recording contract, the label typically owns the sound recording, though the artist retains performer’s rights and moral rights. These nuances must be carefully reflected in written agreements to avoid future disputes.

In films, ownership is even more complex because multiple creative contributors—scriptwriters, directors, cinematographers, editors, and musicians—collaborate. The producer is usually the first owner of the cinematograph film as a whole, but individual authors retain moral rights and may hold separate copyright in their underlying works unless these are assigned. Hence, a film start-up must ensure it obtains proper assignments or licenses from every contributor—writers, directors, lyricists, composers, and performers—to ensure that the film can be lawfully exploited across platforms.

Moral rights are another essential aspect of ownership. Even after assignment, authors retain the right to claim authorship and the right to object to distortion or mutilation of their work that would harm their reputation. Start-ups must respect moral rights, especially in remixing, adapting, or editing works, to avoid legal complications.

Assignment and Licensing of Copyright

The two principal ways to legally use copyrighted works are through assignment or licensing. An assignment transfers ownership of the copyright or a portion of it to another party. A license, on the other hand, grants permission to use the work under specified terms while the ownership remains with the copyright holder. The Indian Copyright Act mandates that both assignments and licenses be in writing and signed by the parties, specifying the scope, duration, territory, and nature of the rights transferred.

For start-ups, choosing between assignment and licensing depends on business strategy. A music label may prefer to acquire assignments of songs to secure long-term control, while a streaming platform or a film producer might obtain licenses limited to distribution or synchronization. For example, synchronization rights allow the use of a song in a film or advertisement, while performance rights cover public performance of the work. Similarly, mechanical licenses are required for reproduction on CDs or digital downloads, and communication-to-the-public rights are necessary for online streaming or broadcasting.

Failure to execute proper assignments or licenses can lead to disputes over royalties, ownership, and infringement claims. Start-ups must maintain documentation for every piece of content they exploit, specifying who owns what rights and under what conditions the work is used. In the absence of clear documentation, courts often presume the creator retains ownership, which can jeopardize business operations.

Copyright Societies and Collective Licensing

In India, several copyright societies manage licensing and royalty collection on behalf of their members. These societies act as intermediaries between users (such as broadcasters, event organizers, digital platforms, and producers) and copyright owners (such as composers, lyricists, and performers). For music and film start-ups, dealing with these societies ensures legal compliance and efficient rights management.

For music, the main societies include the Indian Performing Right Society (IPRS), which manages rights of composers and lyricists, and the Phonographic Performance Limited (PPL), which handles rights in sound recordings. These societies issue licenses for public performance, broadcasting, and communication to the public, and distribute royalties to their members. For film start-ups, the Indian Singers’ Rights Association (ISRA) manages performer rights for singers, ensuring that royalties flow to them when songs are commercially used.

Start-ups that organize events, stream music, or use background music in films or advertisements must obtain licenses from these societies. The advantage of collective licensing is that it simplifies compliance, as one license covers the repertoire of thousands of creators. However, start-ups must ensure that they understand the categories of licenses available, pay appropriate fees, and comply with reporting requirements.

Music Licensing for Start-ups

Music licensing is a critical function for any start-up involved in creating, distributing, or using music. The law recognizes several categories of music rights—mechanical, performance, synchronization, and communication-to-the-public rights. Each right covers a distinct mode of exploitation.

Mechanical rights permit the reproduction of music on physical or digital formats, such as CDs, downloads, or streaming. Performance rights govern the live performance of music or its use in public venues such as cafes, events, or radio. Synchronization rights allow pairing music with visual images in films, advertisements, or videos. Communication-to-the-public rights apply to streaming platforms, television, or radio broadcasts.

A start-up producing films must obtain synchronization rights for using songs in soundtracks. A music app or digital radio must obtain communication-to-the-public rights. Similarly, a venue that plays music must hold performance licenses. Each of these rights may belong to different parties—the composer, lyricist, performer, or recording label—so due diligence is required.

When using music internationally, start-ups must also be mindful of cross-border licensing. Global streaming or distribution involves obtaining worldwide rights or ensuring that the licenses extend to specific territories. Many start-ups partner with international music publishers or aggregators to manage these complexities.

Film Licensing and Distribution Rights

Film licensing involves granting rights to distribute, exhibit, or exploit the film through various channels. The producer, as the owner of the film’s copyright, licenses it for theatrical release, television broadcast, digital streaming, DVD distribution, airline screening, or international territories. Each license specifies the rights granted, duration, territory, language versions, and revenue-sharing model.

For film start-ups, especially independent producers, understanding the distinction between distribution rights, exhibition rights, and streaming rights is crucial. A distributor may acquire theatrical rights for a limited region, while an OTT platform may license digital rights for a specific period. Television rights and overseas rights can also be licensed separately. Each transaction must be carefully documented to avoid overlapping rights and disputes.

Start-ups that acquire or distribute films must conduct due diligence to confirm that the producer owns or has cleared all underlying rights. This includes music rights, story rights, performer agreements, and adaptation rights. Failure to verify these can expose the licensee to infringement claims. Film start-ups must also understand censorship obligations, as public exhibition requires certification under the Cinematograph Act, 1952.

Royalties and the Rights of Authors and Performers

The Indian Copyright Act was amended in 2012 to enhance the rights of authors, composers, lyricists, and performers. The amendment introduced provisions that ensure equitable royalty sharing and protect creators from unfair assignment terms. It clarified that authors of literary and musical works incorporated into cinematograph films or sound recordings retain the right to receive royalties when their works are commercially exploited.

For music and film start-ups, this means they must structure contracts to ensure fair royalty distribution. Even when ownership is assigned, authors are entitled to royalties from uses such as broadcasting, streaming, or communication to the public. Similarly, performers such as actors and singers have a right to receive royalties for the commercial use of their performances. This right is managed through societies like IPRS and ISRA.

Start-ups must also maintain transparent royalty accounting and reporting mechanisms. With the rise of digital platforms, accurate royalty tracking has become a critical compliance function. Neglecting these obligations not only risks legal liability but also damages industry reputation and creator relations.

Digital Distribution and Online Platforms

The growth of digital platforms has revolutionized the way music and films are consumed. Start-ups now distribute content through streaming services, social media, and OTT platforms. However, digital distribution introduces complex licensing and compliance issues. Each mode of digital exploitation—downloads, streaming, user-generated content, and synchronization—requires separate licensing.

Streaming platforms must obtain licenses for both sound recordings and underlying musical compositions. Similarly, film streaming services must secure digital distribution rights from producers and ensure they comply with geo-restrictions and DRM (Digital Rights Management) standards. User-generated content platforms, which host third-party videos or music, must comply with intermediary liability rules under the Information Technology Act and maintain takedown mechanisms for infringing content.

Digital start-ups must also consider international copyright treaties such as the Berne Convention and the WIPO Copyright Treaty, which facilitate global recognition of rights. When distributing content across borders, start-ups must ensure that rights are cleared for all relevant jurisdictions. This often involves coordination with global rights management entities or aggregators.

Infringement, Remedies, and Enforcement

Copyright infringement occurs when a person uses a protected work without authorization. In the music and film industry, common infringements include unauthorized reproduction, digital piracy, streaming without license, or use of songs in advertisements without permission. The Indian Copyright Act provides both civil and criminal remedies. Civil remedies include injunctions, damages, and delivery of infringing copies, while criminal penalties include fines and imprisonment.

Start-ups must establish internal protocols to prevent infringement. This includes verifying rights ownership, maintaining records of licenses, and implementing anti-piracy measures. Digital rights management tools, watermarking, and content identification technologies can help track unauthorized use. Start-ups should also have clear terms of service and copyright policies if they host user-generated content.

If infringement occurs, prompt legal action is necessary. Cease-and-desist notices, takedown requests, and court injunctions are common measures. The law also provides for border enforcement, allowing rights holders to register their works with customs authorities to prevent import of pirated copies.

Global Practices and Co-production Challenges

With Indian music and films gaining international audiences, start-ups increasingly engage in co-productions and cross-border licensing. International collaborations require compliance with both Indian and foreign copyright laws. Co-production agreements must address ownership, distribution, profit-sharing, and dispute resolution. Many countries follow different copyright duration and moral rights standards, so start-ups must seek legal counsel before entering international partnerships.

In global music licensing, collective management organizations often enter reciprocal agreements to facilitate cross-border royalty collection. For film start-ups, international film festivals, OTT platforms, and distribution partners demand proof of rights clearance and chain-of-title documentation. Any ambiguity in ownership can derail deals or invite litigation.

Thus, start-ups must develop comprehensive documentation, including rights assignments, composer agreements, performer releases, and synchronization licenses. Maintaining these records is essential for securing investors, distributors, or co-producers.

Compliance, Documentation, and Best Practices

The most critical legal safeguard for any music or film start-up is meticulous documentation. Every piece of content, every creative contribution, and every commercial use must be documented in writing. Contracts should clearly specify rights ownership, duration, territory, royalty rates, and moral rights. Start-ups must register their works with the Copyright Office and relevant societies. They should also maintain a database of licenses, renewals, and expiry dates.

Establishing internal compliance mechanisms, including regular legal audits and consultation with intellectual property professionals, helps prevent disputes. Start-ups must ensure that all promotional material, background scores, and third-party footage are properly licensed. Ethical use of content builds trust with artists and partners, laying the foundation for long-term success.

Conclusion

The music and film industries thrive on creativity, but creativity alone cannot sustain a business. The real asset lies in the legal rights that protect and monetize creative works. For start-ups in these sectors, copyright and licensing are not abstract legalities—they are the economic lifeblood of the enterprise. Understanding ownership, securing proper licenses, managing royalties, and complying with collective societies are essential steps to operate legally and profitably.

In India, as the creative economy expands, legal awareness among entrepreneurs is becoming increasingly crucial. By respecting copyright and implementing transparent licensing practices, music and film start-ups can build reputational integrity, attract investors, and unlock international opportunities. The future of India’s entertainment sector will belong to those who blend artistic vision with legal discipline. A start-up that values both creativity and compliance stands not only to survive but to flourish in this dynamic and competitive industry.