Copyright licensing is the legal mechanism by which a copyright owner grants permission to another person to exercise one or more of the exclusive rights in a copyrighted work, without transferring ownership of the copyright itself. Under Indian law, copyright licensing is governed by Sections 30-32A of the Copyright Act, 1957, which establish voluntary licensing (Section 30), compulsory licensing (Section 31), and statutory licensing for cover versions (Section 31C).
Legal definition
The Copyright Act, 1957 provides for multiple licensing mechanisms:
Section 30: The owner of the copyright in any existing work or the prospective owner of the copyright in any future work may grant any interest in the right by licence in writing signed by him or by his duly authorised agent.
Section 18: The owner of the copyright in an existing work or the prospective owner of the copyright in a future work may assign to any person the copyright either wholly or partially... [Assignment transfers ownership, unlike licensing which merely grants permission.]
Section 31: If at any time during the term of copyright in any Indian work which has been published or performed in public, a complaint is made to the Commercial Court that the owner of copyright has refused to republish or allow the republication of the work... the Commercial Court may, after holding such inquiry as it may deem fit, direct the Registrar of Copyrights to grant a compulsory licence.
Section 31C: Any person desirous of making a cover version, that is to say, a sound recording in respect of any literary, dramatic or musical work, where sound recordings of that work have been made by or with the licence or consent of the owner of the right... may do so subject to the provisions of this section. [Statutory licence for cover versions.]
The key distinction between licensing and assignment is fundamental: a licence grants permission to use without transferring ownership, while an assignment under Sections 18-19 transfers ownership of the copyright (wholly or partially). An assignment must be in writing and signed by the assignor. A licence under Section 30 must also be in writing.
How courts have interpreted this term
Entertainment Network (India) Ltd. v. Super Cassettes Industries Ltd. [(2008) 13 SCC 30]
The Supreme Court examined the scope of compulsory licensing under Section 31(1)(b) of the Copyright Act. The Court held that where the owner of copyright in sound recordings refuses to allow communication of the works to the public on reasonable terms, a compulsory licence may be granted. The Court established that the copyright owner's right is not absolute and may be subject to compulsory licensing in the public interest.
Indian Performing Rights Society v. Eastern Indian Motion Pictures Association [(1977) 2 SCC 820]
The Supreme Court held that when a lyricist or composer assigns copyright to a film producer under Section 17, the assignment is limited to the exploitation of the work in the context of the film. This does not prevent the author from granting separate licences for independent exploitation of the underlying musical or literary work.
Tips Industries Ltd. v. Wynk Music Ltd. [(2019) Bombay HC]
The Bombay High Court examined whether a statutory licence under Section 31D (compulsory licence for broadcasting organisations) applied to internet streaming services. The Court held that Section 31D applies only to radio and television broadcasting, not to internet-based music streaming platforms, clarifying the scope of statutory licensing.
Why this matters
Copyright licensing is the commercial engine of India's creative economy. The music industry, film industry, publishing sector, and software industry all operate through licensing frameworks. Every time a film uses a song, a radio station plays a track, a website publishes content, or a business uses licensed software, a copyright licence (whether express, implied, or statutory) governs the transaction.
For content creators, understanding the distinction between licensing and assignment is critical. An assignment transfers ownership permanently (subject to the author's right of reversion under Section 19(5) after five years). A licence retains ownership with the creator and grants limited rights for a specified period, territory, and purpose. Creators should generally prefer licensing over assignment to retain long-term control over their works.
For businesses using copyrighted content, proper licensing ensures legal compliance. Using copyrighted works without a licence (or outside the scope of an existing licence) constitutes infringement under Section 51. Copyright societies such as IPRS (music), PPL (sound recordings), and IRRO (reprographic rights) provide collective licensing mechanisms that allow businesses to obtain blanket licences for large catalogues of works.
Related terms
Broader concepts:
Related concepts:
Frequently asked questions
What is the difference between a copyright licence and an assignment?
A licence under Section 30 grants permission to use a copyrighted work without transferring ownership. The copyright owner retains ownership and can grant licences to multiple parties. An assignment under Sections 18-19 transfers ownership of the copyright itself. Both must be in writing and signed. An assignment is subject to the author's right of reversion after five years under Section 19(5).
What is a compulsory licence for copyright?
Under Section 31 of the Copyright Act, when a copyright owner refuses to republish or allow communication of a published Indian work to the public on reasonable terms, the Commercial Court (formerly Copyright Board) may direct the Registrar to grant a compulsory licence. This ensures public access to works where the copyright owner unreasonably withholds permission.
Do copyright societies need to be registered?
Yes. Under Section 33 of the Copyright Act, 1957, no person or association of persons shall commence or carry on the business of issuing or granting licences in respect of any work without registering with the Registrar of Copyrights as a copyright society. Only one copyright society is permitted per class of work.
This entry is part of the Veritect Indian Legal Glossary, a comprehensive reference of Indian legal terminology grounded in statutory text and judicial interpretation.
Last updated: 2026-03-27. Veritect provides this content for informational purposes and does not constitute legal advice.