DIRECTOR’S REPORT PRESENTED BY THE CHAIRMAN
On behalf of your Directors, I am extremely happy in presenting this Annual Report along with the Audited Accounts for the year ended on 31st March, 2009.
LICENCING ACTIVITIES:
Performing Rights Income
The total Income on account of Performing Rights of the Society in the current year was Rs 2653 Lacs compared to previous year’s Income of Rs 2514 Lacs an increase of Rs. 138 Lacs which is about 5.5% over that of last year. Accordingly the Royalties Due to the Members after deduction of Legal and Administration Expenses is Rs 2242 Lacs compared to Rs 2210 Lacs an increase of Rs 32 Lacs which is an increase of 2% over the last year.
In the current year there was an increase of Rs 525 Lacs in General Public Performance and a dip of Rs 122 lacs in Broadcasting Income (FM Radio) compared to the previous year which is due to litigations and newer stations infringing the rights of the society. Some of the FM Operators have challenged the rights of the society this is being contested by the society and the society has taken legal steps to protect the stand, the society believes the legal steps taken should increase the royalty income from the radio broadcasters significantly.
The Overall Overseas Income saw a drop of Rs 300 lacs in the year to the fact that the society did not reach a reciprocal agreement with PRS-UK and as a result no royalties were received or remitted. The reciprocal agreement with PRS-UK has been signed in April, 2009 with effect from November, 2007 and royalties have been remitted by both the societies to each other during the current year. Also in years to come such overseas income can fall due to the fact that a lot of members have become direct members of the international societies and have started collecting such income abroad directly. But the Society will keep its efforts to increase its Income from Overseas for its members due to the increase in the exploitation of Indian Musical Works in the overseas market by tapping new countries where Indian Music has made its inroads.
The Society continues to employ its idle funds of undistributed royalty very effectively. The funds lie unused for the “period” between the receipt of royalties from Users and Foreign Societies and its distribution to the Members. The “period” occurs due to the time required by the Society to process all details for calculating Royalties payable to members.
COPYRIGHT AND LEGAL MATTERS
1. CASES AGAINST THE SOCIETY WITH REGARDS OWNERSHIP
A. SUIT IN BARASAT COURT BY SAREGAMA INDIA LIMITED – AGM 2004
Saregama India has filed a Suit in the Barasat Court and an ex-parte injunction has been granted against the Society on 25th November, 2004, with regards the decisions of the AGM which was held on 29th September, 04. The issues raised by Saregama India are with regards ownership in the works and that the owners should be members of the society. Besides, they have raised issues relating to governance of the Society too.
The Society has contested the injunction and has pleaded for a vacation of the same. Appeals on this case are in the fast track court.
B. PETITION IN COMPANY LAW BOARD – PRINCIPAL BENCH BY UNIVERSAL MUSIC INDIA LTD & SONY BMG MUSIC ENTERTAINMENT (India) LTD –
A petition has been filed by Universal Music India Ltd. and Sony BMG Music Entertainment (India) Ltd under section 397, 398, 402 & 111 of the Companies Act, 1956 against the Society. The petition states that –
- The Society should have Copyright Owners as members as per the section 34 of the Copyright Act, 1957.
- The Society has admitted Authors & Composer as members who are not the owners.
- The Society has not maintained a Register of Owners.
- The Copyright owners i.e. Music Companies/Publishers have effectively been rendered into minority.
- The various irregularities in the society by the previous management, and other issues.
The Society has filed its reply and affidavit before the principal bench CLB on the basis of the orders / comments passed by the CLB.
Sony & Universal Music have moved the High Court u/s 399 exemption of the membership criteria, the CLB board has passed directions that till the High Court matter is disposed the application will be kept pending for hearing.
C. SUIT IN BARASAT COURT BY SAREGAMA INDIA LIMITED – AGM 2005
Injunction order dated 23rd September, 2005 was given by the Barasat Court on the Annual General meeting of the Society which was scheduled for 28th September, 2005.
The Injunction order of the Barasat Court was on the basis that it is statutorily mandatory for IPRS to maintain a Register of Owners of Copyright at its registered office, which has not been maintained by the society.
The Governing Council has written to its members to furnish details of works owned by them i.e. Name and Address of the Owner, Nature of Rights that the member has authorized IPRS to administer, Date of Publication of the work. Date and duration of assignment to The Indian Performing Right Society Limited, so that the Register of Owners can be prepared.
The Society has contested the injunction and has pleaded for a vacation of the same.
D. SUIT IN BARASAT COURT BY SAREGAMA INDIA LIMITED - AGM 2006
An Injunction order dated 27th September, 2006 was given by the Barasat Court on the Annual General Meeting of the Society which was scheduled for 29th September, 2006.
The Injunction order of the Barasat Court was on the basis that it is statutorily mandatory for IPRS to maintain a Register of Owners of Copyright at its registered office and amend the Articles of Association, which was not complied with by the society.
The Society has initiated process for vacating of such injunction so that the Society can hold its AGM.
E. Petition in Company Law Board – Mumbai by Tips Industries Limited
A petition has been filed by Tips Industries Limited under section 111 & 150 of the Companies Act, 1956 against the Society on 15th March, 2007.
The Petition states the following in summary
- The Society should have Copyright Owners as members as per the section 34 of the Copyright Act, 1957.
- The Society has admitted Authors & Composer as members who are not the owners.
- The Society has not maintained a Register of Owners.
- The Copyright owners i.e. Music Companies/Publishers have effectively been rendered in minority.
The following Reliefs have been sought (summarized)
- The Society be directed to maintain a Register of Copyright Owners as per Rule 14(i) of Copyright Rules, and the same to be treated as Register of Members u/s 150 of the Companies Act.
- The Society be directed to provide names of Member Publishers who have furnished details of Ownership.
- The Current List of Members be amended and rectified on the basis of the Owners of Rights and only owner members be included in the List of Members.
The Society has filed its replies on the same, and no orders have been passed.
The Society is taking necessary steps to defend and protect its interests and that of its members.
2. LICENSING CASES
A. LEGAL AND OTHER VICTORIES
Carrying the Legal process further, the Society continues its battle against errant Users of Music by taking Legal action against them. The Society has succeeded in all the Actions that it took. Through these actions, the Society is not only consolidating its position vis-à-vis the Users, but also setting legal precedence in the country on Copyright Issues. An example in sight is the case against “HT Music (FM Radio) where the courts upheld the rights and asked HT Music to pay license fees to the Society and now they have compromised and started paying the requisite license fees.
I would like to recognize the immense and sincere efforts constantly put in by our Lawyers Mr. Pravin Anand and Mr. Jagdish Sagar from Anand and Anand, Mr. Ameet Datta from Luthra & Luthra and Mr. Shekhar Menon, resulting in these victories. For your information, the Society has planned to take Legal action against certain additional number of users during the ensuing year with the aim of entrenching the Society as a Copyright Protector in India.
During the year Major chains like Aircel Limited, Vodafone Stores, Cantabil Stores, Madura Garments (Brands like Loius Phille, Allen Solly, Peter England), Sports Station (Brands like Levis, Nike, Shoe tree, Dockers), DLF Malls, KFC, etc have been successfully licensed and have started paying IPRS the requisite royalties for all its units through out the country.
INTERNATIONAL RELATIONS
The Society is constantly engaged in improving its International Relations with its various Sister Societies. The Society officials participated in the CISAC - Asia Pacific in Hongkong and Sydney and met the members of CISAC.
ADMINISTRATION
A. ROYALTY DISTRIBUTION
The Society took up for distribution gross royalties to the tune of Rs 15 Crores to its domestic members and Rs 1.31 crore to its International Societies during the financial year 2008-2009, and the members were paid royalties accordingly for the logged and unlogged royalties scheme as approved in the AGM. Further the royalty to the non-owner members were distributed accordingly to the guidelines laid down by the Governing Council.
B. DATA DOCUMENTATION
I am honored that my request to all the members, at the last AGM, resulted in a large number of Members filing their Work Notification Forms with the Society. However, there are still some Members who are not filing their Work Notification Forms with the Society. This causes a lot of difficulties in administrating the Rights of their Music, identifying their Works in distributing Royalties thereon. Further, there are Members who have initially filed their Work details thereafter have not been prompt enough to file their subsequent Work details. Thus, I take this opportunity to once again request all Members to furnish their full Work details on a regular basis and don’t wait for a reminder from the Society. This would ensure more Royalties for you. Thus, help the Society to help you.
C. LICENCING
As the society is striving hard in the area of Licensing Live Performances, Members are requested to co-operate with the Society – to the extent that whenever they take part in any Live Performances, they should ensure that an IPRS License has been obtained by the organizer of that Event. Only then, will organizers learn a lesson and start paying up IPRS Royalties. If all of us follow this procedure of not attending any Performance, Show, Concert without having the IPRS green signal, no show can be successful. At this point I would like to remember a phrase “United We Stand”.
MEETINGS
The Annexed statement would give you the number of Meetings the Governing Council held during the financial year 1st April, 2008 to 31st March, 2009 and the attendance by each Director at such Meetings.
MEMBERSHIP
Since the last Annual General Meeting 190 (61 Composers, 96 Authors, 29 Publishers, 04 Audio Visual Publisher) new Members and 26 Legal Heir Members have been admitted to the Membership of the Society during the year. The list of such new Members is attached. The total strength of the Society now is 2030 Members. The year witnessed a good number of new members.
ACKNOWLEDGEMENTS
We thank our Legal Advisors and Auditors for their guidance and co-operation. We also thank our staff who have co-operated whole heartedly in the working of our Society.
GENERAL
With all the progress being made by the Society and the increasing amount of exploitation of Indian music in India and Abroad, one need not emphasize the growing importance in value of Performing Rights. Performing Rights is a very valuable wealth of any Author, Composer and Publisher and has thus to be protected by him. With the growth of income from Performing Rights, it is now become important for all IPRS Members to be cautious while dealing with Copyright. I would recommend to all the members that they seek advice and assistance of IPRS in all their Copyright matters so that they are not exploited unduly.
Mumbai Sd/
Date: 31st August, 2009 HASAN KAMAAL
CHAIRMAN
