Monthly Newsletter - January 2022

Right to Royalty for Underlying Works: Conundrum in Law and Underlying Issues

Introduction

Section 18 of the Copyright Act, 1957 ("Copyright Act") deals with the assignment of copyright. Such assignment can either be by an owner of an existing work or the prospective owner of the future work to any person, either in whole or in part. By way of the Copyright (Amendment) Act, 2012 ("Amendment Act") two provisos were inserted by the legislature to Section 18 of the Copyright Act.

The provisos¹ essentially prohibit an author of literary or musical work forming part of either a cinematographic film or a sound recording from waiving his/her right to receive royalties (and any such waiver if done will be void) for utilization of the underlying work. The royalties so received is to be shared equally with an assignee of the copyright (if any and as applicable). This rule prohibiting waiver and entitling authors to at least 50% royalty does not apply to assignments made