In 2024, the Petitioner, Al Hamd Trade nation was organizing a small corporate event for 50 attendees and contacted Phonographic Performance Limited (PPL) for the applicable fee for a license to play recorded music at their event. On being quoted INR 49,500, Al Hamd countered with an offer of INR 16,500. However, PPL refused and instead filed an infringement suit against Al Hamd. In response, Al Hamd filed a petition seeking a compulsory license, arguing that PPL’s tariff and pricing structure is unreasonable and arbitrary and thus, amounted to a refusal to license its works. The Delhi High Court held that demanding arbitrary or unreasonable fees for public performance rights can amount to a constructive refusal to license, and entitles the applicant to a compulsory license under Section 31 of the Copyright Act, 1957. It held that offering a license on unfair, arbitrary, or exorbitant terms can effectively deny access and trigger the right to a compulsory license.

Source: Al Hamd Trade nation v. Phonographic Performance Limited [C.O.(COMM.IPD-CR) 8/2024]