Spotify, the music streaming web-application, faced certain
legal issues before its launch in India. Spotify reportedly entered
into license agreements with major record labels such as Sony,
T-Series etc. to broadcast their music through its application. It
would pay royalties to the owners of the works held by these labels
as per the provisions of these license agreements. However, its
negotiations with one of the international record label Warner
Music Company apparently did not work out. It is reported that the
parties could not agree upon the royalties to be paid.
Spotify, in view of its forthcoming launch, nevertheless decided
to proceed with statutory license as per the Copyright Act. The
Copyright Act allows broadcasters to obtain licenses without the
express permission of the owner at royalty rates fixed by the
"Intellectual Property Appellate Board ("IPAB").
