'Hotels liable for royalties on cable TV in guest rooms', rules Calcutta High Court

Hotels providing cable television in guest rooms must obtain a separate copyright licence for literary and musical works made available through the service, the Calcutta High Court has ruled, holding that a licence obtained by the cable operator does not exempt the hotel from paying royalties. A Division Bench of Justices Debangsu Basak and Md Shabbar Rashidi held that providing cable television in hotel rooms amounts to "communication to the public" under the Copyright Act, 1957, as the facility is commercially exploited by the hotel. The judgment was delivered on August 4 in an appeal filed by the Indian Performing Right Society Limited (IPRS) against Hotel Appolo & Tours Private Limited. The High Court set aside an order of the District Judge, Darjeeling, which had refused to grant an interim injunction in favour of IPRS.

Hotel rooms 'not private subscribers'

IPRS had approached the court alleging that the hotel was making literary and musical works belonging to its members available to guests through cable-connected television sets without obtaining the required licence or paying royalties. The copyright society sought a permanent injunction, damages of ₹9 lakh and rendition of accounts of profits. It also sought an interim injunction restraining the hotel from using the works while the case was pending.

The District Judge had rejected the interim plea, holding that IPRS had conflated copyright with broadcast reproduction rights under Section 37 of the Copyright Act. The lower court also concluded that the hotel did not have a role in the alleged use of copyrighted material. Challenging the decision, IPRS argued that making literary and musical works available to hotel guests through cable connections amounted to "communication to the public" under Section 2(ff) of the Copyright Act and consequently required permission from the copyright owner.

The High Court examined the definitions of "cable operator", "cable service" and "subscriber" under the Cable Television Networks (Regulation) Act, 1995. It rejected the argument that individual hotel guests could be considered subscribers to the cable service. The hotel itself was the subscriber, the Court reasoned, while the cable service was subsequently being extended to people staying in its rooms. The Bench also considered Section 52(1)(k) of the Copyright Act and noted that the provision distinguishes between residential premises and hotels, as well as between activities carried out for profit and those undertaken without a profit motive.

TV facility adds commercial value

The Court found that even though guests were not separately charged for watching cable television, providing TVs and cable services in rooms formed part of the amenities offered by the hotel and added commercial value to its business. It therefore concluded that making copyrighted literary and musical works available through those television sets amounted to commercial exploitation. The Bench further rejected the hotel's contention that the licence held by its cable operator was sufficient to cover the use of copyrighted material in guest rooms.

The cable operator's licence, the Court held, covered communication to its subscriber — the hotel — but did not authorise the hotel to further commercially communicate copyrighted works to its guests. The hotel was therefore required to secure its own licence from IPRS before making such works available in its rooms. The High Court concluded that IPRS had established a strong prima facie case of copyright infringement and that the District Judge had erred in refusing interim protection. It consequently set aside the lower court's order and allowed IPRS's application for an interim injunction, restraining the hotel from communicating copyrighted literary and musical works belonging to IPRS members to guests through televisions without obtaining a valid licence.