The Film & Music Industry must congratulate the HRD Ministry for the proposed Amendments, recently approved by the Cabinet, to the Indian Copyright Act. The Bill is now expected to be introduced & passed by Parliament during the Budget Session this February. The amended Act in expected to be compliant with WCT [World Copyright Treaty] & WPPT [World Performance & Phonograms Treaty]. This step by the Government once again expresses its noble intentions of keeping INDIA in the fore front of being a country which is committed to encourage, develop, harness & protect Intellectual Property Rights [IPR].

IPR is claimed as the 'engine of growth' in the World Economy. With INDIA aspiring to be one of the 3 leading world economies it is imperative that Laws enacted, in this case for the betterment of the Copyright Industry, translate themselves into effective tools of economic growth. The Business of Copyright in general, is known to be driven by Economic & Incentive considerations. When anyone creates an intellectual property [here with specific reference to Film Music] and is interested to receive economic returns then the creator [lyric writer / composer] is required to invest himself or get an entrepreneur [Film Producer], to invest in the making of the Film and incorporating the song in the Film.

Film Production requires significant skills and resources.  

The economic value of a film song, in majority of the cases, is dependent on the 'set up' of a particular film. A Production House for example, a Yash Raj Banner or a Dharma Productions [Karan Johar] or a Rajshree creation or a Vidhu Vinod Chopra production coupled with actors like, Amir, Shahrukh , Salman, Akshay,Saif, Ranbir, Katrina or any leading artist, gives a unique impetus to a song, enhances its value multiple times, thus embellishing the song with a greater potential of viewership and success than a song which does not have such investments. There are always exceptions but those are far and between and in any case a business cannot be secured on exceptions. Hence large investments are needed to create a film song that can have a chance of catching the attention of the audience; such investments also run a very high risk. This kind of an investment model [here with specific reference to Film Music] demands a Creator-cum-Entrepreneur enterprise.

 So far, it is the Film Producer who has been involved in such a Creator-cum-Entrepreneur enterprise of investing and monetizing sound recordings & musical works by assigning such copyrights to his own Music Company [ Yash Raj Music, Eros Music, Tips] or independent Music Company's [ T-series, Sony, Saregama]. The risk first taken by Film Producer's & later shared by the Music Company's is very high as in the most likely scenario; just 20% of such films / film songs succeed while 80% fail (Profit's from the 20% successful products are expected to take care of the losses of the 80% failures).

The entire risk & returns are presently shared by the two stakeholders i.e. Producer & Music Company. 

With the Film Industry at a lower than 20% success ratio and with rampant music piracy [which takes away the profits mostly from the successful products sales] the present 20:80 ratio model is under great stress and becoming unviable. Now in the amendments announced by the Government Press Release of 24th December 2009, there seems to be an intent to give a role to the music creative fraternity [lyricist / composer], in the Business of Film Soundtracks by way of :

* Independent rights in their creations of lyrics & compositions.

* leading to a share for them in the modest returns from the 20:80 ratio revenue model.  

The lyricists / composers will now via to become the 3rd & 4th stakeholder,  [1st & 2nd being Producer & Music Co],  in the small 20% revenue pie, which is rapidly shrinking. 

THIS IS A CRITICAL TIME FOR THE STAKEHOLDERS TO EITHER ENSURE PROGRESS OR RETARD THE PRESENCE OF MUSIC IN A FILM. 

A choice has to be made :

Either seize the opportunity by way of all the 4 stakeholders [Producer, Music Company , Lyricist & Composer] coming together and using their combined strengths to find ways & means to increase music related earnings OR  face the threat of fighting, first to establish Rights & Revenues amongst themselves and then to try monetizing a fair value from users of music i.e. Radio / TV / Mobile / Internet etc.   

 Besides the 4 legitimate stakeholders, there is a 5th party/s who is/are stealing away 90% of all music revenues.......this 5th party/s are.....various pirates, illegal users & those not paying a fair price for usage.

 It will not be worth for the 4 stakeholders to start ' fighting ' for shares of the small 20% present music revenues pie............what will be productive will be to come together and "Fight the Bigger Fight" i.e.  Monetize the sizeable revenues they are losing today to illegal and unfair users. If that is done then there will be sufficient economic incentive for the entire 4 legitimate stakeholder and it would enable them to grow the Business of Copyright. 

 This is a clarion call to "Fight the Bigger Fight" - together!

Can the new amendments, instead of causing a further rift amongst the music stakeholders, be the reason for the 4 stakeholders to come together for a more secure tomorrow?

 The 4 stakeholders must realize that it is unproductive to fight amongst themselves for small spoils. They must instead unite & form a strategy to monetize the larger pie. This would ensure a happy ending to the story of the amendments being announced as Law meant to help grow the business of Copyright.  

If not then the introduction of the new amendments would be unfruitful to the creative fraternity of Lyricists / Composers as the present main stakeholder the  Film Producers will not allow their Rights to be diluted leading to loss of revenues............a series of representations from the South Indian Producers Associations and Bollywood have already reached the Government; if no amicable solution is found and the amendments are passed as proposed then be ready for long & futile Court battles, amongst the Film Industry fraternity, with a host of Writ petitions for the Government to respond. This chaotic state of affairs is expected as the Government, it seems, failed to have had consultations with the Film Industry before finalizing the amendments.    

 The time is NOW for the Statesmen of the Film Industry to stand up and "Fight the Bigger Fight"  with the support of all the 4 stakeholders & the Government -  lest the New Law instead of acting as an impetus to the economic growth of copyright business may well end up retarding the progress of Film Music in India.

- By B.B.Anand