Tag: Royalty

  • IP rights aren’t just for big artists; they’re crucial for creators at every level: IPRS’s Rakesh Nigam

    IP rights aren’t just for big artists; they’re crucial for creators at every level: IPRS’s Rakesh Nigam

    Mumbai: India’s music industry, a vibrant blend of tradition and modernity, is evolving rapidly with over 20,000 original songs created annually by around 40,000 artists. As global digital platforms like YouTube and Spotify reshape how music is consumed, protecting the rights of these creators has become more crucial than ever.

    The Indian Performing Right Society (IPRS) is at the forefront of this transformation, navigating the challenges of digital distribution and global IP standards to ensure that Indian artists are fairly compensated and their work respected worldwide. As the industry adapts to these shifts, IPRS’s proactive measures highlight its commitment to safeguarding creators’ rights in a changing digital landscape.

    Indiantelevision.com’s Arth Chakraborty in conversation with IPRS CEO Rakesh Nigam delved deeper into how the organisation is tackling the evolving challenges of digital rights management and working to enhance protection for Indian music creators.

    Edited Excerpts:

    On the rise of global digital platforms impacting the protection of music creators’ rights in India

    The rise of global digital platforms has been both an opportunity and a challenge for music creators in India. On one hand, these platforms, including YouTube, Meta, Spotify, Apple etc, have provided unprecedented reach for our artists, allowing them to connect with global audiences. Our partnerships with these major digital service providers (DSPs) and OTT platforms have been transformative for IPRS and its members. They have not only increased royalty income but also provided significant global exposure to Indian music creators.

    However, the digital environment presents challenges, particularly regarding the value gap, the disparity between the value these platforms derive from music content and the revenue returned to the creators and publishers. A significant number of users access music for free on these platforms, resulting in substantial losses for creators and publishers who are not adequately compensated for their work.

    IPRS has been proactive in adapting to these changes, ensuring that our licensing models and royalty collection methods are aligned with the evolving digital landscape. We anticipate deepening our partnerships, with more tailored licensing agreements that reflect this evolution. New opportunities include increased monetisation options, access to detailed consumption data, and potential collaborations with international artists and creators. Through these initiatives, we are continuously working to protect our creators’ rights and ensure they are fairly compensated in this new digital landscape, while also enforcing their rights on a global scale.

    On the role that IPRS plays in aligning India with global IP standards

    We actively participate in international forums, collaborate with global copyright societies, and ensure that our practices are in sync with international norms. By doing so, we help bridge the gap between India’s traditional IP framework and the evolving global standards. Our initiatives, like the ‘My Music, My Rights’ campaign, are designed to raise awareness among creators about their rights and how to protect them.

    Additionally, our collaboration with neighbouring countries, such as Bangladesh through the WIPO Mentorship Programme, underscores our commitment to fostering a robust IP framework across the region. Our efforts are focused on not only protecting the rights of Indian creators but also ensuring that their works are respected and rewarded globally.

    On some challenges unique to India in managing IP rights in the music industry

    One of the unique challenges in India is the vast diversity of our music landscape, which includes a rich array of regional music and a large number of independent artists. This diversity complicates the implementation of a one-size-fits-all approach to IP rights management. Additionally, there is a widespread lack of awareness about the importance of IP rights among many creators, particularly in rural areas, making it difficult for them to protect and monetise their work effectively.

    Another significant challenge is the value gap, the disparity between the value derived by digital platforms from music content and the revenue that actually reaches the creators and publishers. This issue is particularly pronounced in India, where a substantial number of users access music for free through these platforms. As a result, creators and publishers face considerable financial losses, as they are not adequately compensated for their contributions.

    Piracy also remains a persistent problem in India, further exacerbating the difficulties in ensuring that creators receive fair remuneration for their work. Despite the progress we’ve made, the unauthorised distribution of music continues to undermine the value of IP rights.

    On the steps that IPRS is taking to educate emerging artists and creators about the importance of IP rights

    IPRS is a not-for-profit society, owned by its members, working to ensure they are fairly remunerated whenever their songs/music are utilised. This is the bottom line. Established in 1969, IPRS was built on the solid values of solidarity, resilience, equality, and transparency. We have launched several initiatives, awareness drives, seminars, workshops, round-the-year training sessions, tutorials, grants, and aids, as well as programs like ‘Credit The Creator’ – to acknowledge the creators of music publicly; music licensing drive Licence Liya Kya for fair pay and fair play of music; HerMusic, an initiative to encourage greater representation of women in music; multi-city member workshops ‘Learn and Earn’; CreativeShala, a platform to learn and engage with leading music-makers from the industry, and more. ‘My Music, My Right’ a nationwide workshop to raise awareness on music copyrights and providing support to music creators across the nation.

    We have been very active in speaking to members and listening to them. IPRS has been their voice on various platforms and in multiple institutions. We also launched a ready-to-access and technologically advanced member portal where members can now easily spot discrepancies or conflicts and can be in complete control of their work. Several result-oriented training programs and tutorials to familiarise our members with the registration of their works have also been designed during the period. Timely and accurate registration of works ensures better claims and royalties.

    On the lessons that India’s music industry has learned from global shifts in IP management

    One of the key lessons we’ve learned is the importance of adaptability. The global music industry has undergone significant shifts with the advent of digital platforms, and IP management practices have had to evolve accordingly. We’ve learned that it’s essential to be proactive in adopting new technologies and practices to ensure that our creators’ rights are protected in a rapidly changing environment. We’ve also seen the importance of collaboration, both within the industry and across borders, to address the challenges of IP management effectively.

    On the biggest misconceptions about IP rights in India’s music industry, and how is IPRS working to dispel them

    A common misconception is that IP rights are only relevant to big, established artists. In reality, IP rights are crucial for creators at every level. Many believe that copyright enforcement is weak or that it’s not worth the effort, which leads to complacency. IPRS is working hard to dispel these myths through our outreach and education programs. We’re showing creators that their rights are valuable and that they have the power to protect and profit from their work, regardless of their status in the industry.

    On IPRS supporting innovation while ensuring the protection of creators’ rights

    Innovation and protection go hand in hand at IPRS. We encourage creativity by ensuring that our licensing models are flexible and adaptable to new forms of music distribution and consumption. At the same time, we are vigilant in protecting the rights of our members. We invest in technology that allows us to track the usage of music across various platforms, ensuring that creators are fairly compensated for their work. By balancing innovation with protection, we create an environment where creativity can thrive.

    On the key areas where India’s IP framework still needs to evolve to match global standards

    While India has made significant strides in IP protection, there are still areas that need to evolve. We need support from relevant authorities and the government for proper enforcement of the law. There should be high penalties and strong repercussions for non-compliance to ensure that the law which has been made to protect is rights of the rightful owners has been adhered to.

    One key area is the enforcement of IP rights, where we need stronger legal frameworks and quicker resolution of disputes.

    Additionally, there needs to be greater awareness and understanding of IP rights at the grassroots level. Another area is the need for more robust data collection and reporting mechanisms to ensure transparency in royalty distributions. IPRS is committed to working with policymakers and industry stakeholders to address these gaps and bring India’s IP framework in line with global standards.

  • Technological renaissance transforms the music industry

    Technological renaissance transforms the music industry

    Mumbai: The music industry is undergoing a dramatic transformation propelled by recent technological advancements in artificial intelligence (AI) and machine learning. From music production to distribution and consumption, these technologies are reshaping how music is created, promoted and enjoyed around the world. Many experts describe this phenomenon as a “technological renaissance” for the music industry. The AI music generation industry is projected to achieve a market value of $1.10 billion by 2027, with an anticipated compound annual growth rate (CAGR) of 41.89 per cent.

    AI and the creation of music

    One of the most groundbreaking applications of AI is its ability to actively participate in the creative process of songwriting. Algorithms can now analyse patterns in existing songs or musical styles and use that data to generate original melodies, harmonies and lyrics. Companies like Amper Music and Popgun use advanced AI to produce customisable, royalty-free music tracks for content creators within minutes. The quality of these AI-generated tracks is impressive and continues to improve each year.

    For human artists, AI tools provide songwriting support by suggesting intelligent chord progressions, unique melodies and clever lyrical ideas. Musical skills that once took years to develop can now be augmented with smart technology. Apps like Runway ML and Amadeus Code let artists craft catchy tunes through accessible AI-aided interfaces. With the help of artificial intelligence, both professional and amateur musicians have new ways to actualise their creative visions.

    The democratisation of music production

    Emerging AI applications are also making music production much more inclusive for creators worldwide. Tools like Splice Studio use machine learning to provide real-time feedback during a recording session, allowing vocalists to hone their performance without extensive studio knowledge. For home producers, apps like Landr and Cvr provide instant online mastering and distribution at the click of a button. Users can upload their tracks to be optimised sonically by an AI mastering engineer and published across leading streaming platforms.

    Such innovations are lowering economic barriers and enabling broader participation in music creation. Bedroom artists can now achieve near industry-standard production quality without expensive hardware or audio engineering degrees. With these technologies, musical expression is no longer limited to those with access to professional studios.

    Reimagining music distribution

    The companies leading music’s technological renaissance also aim to improve how artists reach listeners and achieve commercial success.

    Streaming platforms are leveraging artificial intelligence in their distribution and recommendation features. Services like Spotify, YouTube Music and SoundCloud are training algorithms to study users’ listening patterns and musical tastes. They then utilise predictive modelling to recommend relevant new artists that align with an individual’s preferences. For emerging musicians, scoring a top spot on a service’s editorial playlist can mean mass exposure and a platform for sustainable growth.

    To increase streaming revenue, artists are also beginning to experiment with lyrics written by AI that target popular searches. Further, blockchain technology also shows potential for transforming music distribution. Smart contracts can facilitate direct payments to artists, allowing them to bypass labels and keep a higher share of streaming royalties. By incorporating blockchain, musical creators gain more control over rights management and unlock new community-driven business models.

    The immersive musical experience

    As virtual and augmented reality mature, music fans can expect even more immersive listening environments powered by interactive AI capabilities. Spatial audio innovations from Dolby and Sony are bringing dynamic new sonic dimensions to headphone and speaker experiences. Of course, live shows are still irreplaceable for most fans – but virtual concerts hosting 3D holograms of artists could expand access and customisation. Imagine choosing camera angles while watching AI-generated versions of Michael Jackson or Elvis Presley dancing across a stage! For pop stars embracing eligibility, AI imaging lets them appear continuously young and modify their looks to suit different videos or promotions.

    Preserving musical heritage

    Beyond pioneering new sounds, artificial intelligence opens exciting doors for preserving our existing musical heritage. MIREX organisation hosts annual competitions challenging researchers to build algorithms that can accurately transcribe or detect attributes of specific recordings. Such technologies may soon help digitise archives of classical, folk or traditional music more efficiently. AI transcription also helps map the long cultural impact of seminal artists like the Beatles through tools such as deconstructing their melodic particularities or vocal phrasing nuances over time.

    Responsible innovation

    However, such seismic change does not come without risks or challenges to overcome. As the application of artificial intelligence transforms this industry, leaders must prioritise transparency and fair practice. Developing guidance around responsible innovation safeguards artists and audiences while allowing helpful disruptions to improve music’s future.

    Data protection concerns

    The vast data collection powering modern AI does raise critical privacy issues. To create accurate musical insights, companies may utilise personal information or recordings without obtaining full user consent. Artists run the risk of having their brand identity digitally exploited without proper permissions or attribution. Startups should follow strict protocols around announcing data collection policies and securing user sign-off before gathering any musical samples for machine learning development.

    Copyright infringement fears

    Another area needing governance is establishing protections around copyright violations. Existing songs and sonic works used to train musical prediction algorithms could become replicated through imitative AI attempting new compositions. While these occurrences appear rare currently, standards preventing plagiarism should be instituted as the technology progresses. Companies might submit lyric samples or full tracks to panels gauging substantial similarity before releasing any AI-generated content. Such oversight reduces legal disputes.

    Moderating synthetic media

    Perhaps the most dangerous misuse lies in AI’s ability to generate synthetic impersonations of real-world artists through manipulated imagery or vocals. Nefarious uses involving political figures also display how easily the technology enables falsification. While debunking tools emerge alongside synthetic media itself, undoubtedly more aggressive identification and reporting mechanisms must counteract malicious attempts. Significant lawsuits or regulations could follow if the technology becomes an outlet for fraud. Progress relies on equitable access paired with accountability.

    Preserving creative jobs

    Economic anxiety also looms large, as promising automation often prompts fears of technology replacement. Musicians’ unions have already voiced scepticism about enterprises promising to simulate the nuances of human creations through algorithms alone. However, a balanced perspective shows AI will more likely augment roles rather than outright replace creative professions in the years ahead. Just as past production tools expanded options rather than abolished instruments, artificial intelligence can unlock new vocations we have yet to envision.

    To conclude

    This wave of exponential progress makes today an electrifying period to participate in the music industry. Behind the nerves around any sweeping change rests confidence that new paradigms ultimately shift power closer towards consumer benefit. Fans gain more choice over what they hear and how media gets made. Musicians unlock tools once unthinkable to achieve their creative goals through mass collaboration; funding channels or instant information sharing increase their strategic autonomy. Though the days ahead are not without uncertainty during this technological renaissance, one certainty persists – our cultural fervour for music will only intensify in remarkable ways through artificial intelligence.

    The author of this article is TreadBinary founder and director Darshil Shah.

  • Lower TV segment revenue adds to Saregama Q2-17 numbers downturn

    Lower TV segment revenue adds to Saregama Q2-17 numbers downturn

    BENGALURU: Indian custodians of music company Saregama Limited (Saregama) reported 14.2 per cent year-over-year (y-o-y) and 0.9 per cent quarter-over-quarter (q-o-q) declines in total income from operations (TIO) for the quarter ended 30 September 2016 (Q2-17, current quarter). The company reported TIO of Rs 47.90 crore in Q2-17, Rs 55.80 crore in Q2-16 and Rs 48.33 crore in Q1-17. The company also saw a decline in Net Sales revenue as well as License Fees revenue in the current quarter.

    The company’s profit after tax (PAT) in Q2-17 declined to less than half (1/2.25 times) y-o-y to Rs 1.15 crore (2.4 per cent margin) from Rs 2.59 crore (4.6 per cent margin) and declined 34.7 per cent q-o-q from Rs 1.76 crore (3.6 per cent margin). EBIDTA including other income in Q2-17 declined 26.8 per cent y-o-y to Rs 4.06 crore and declined 12.1 per cent q-o-q from Rs 4.62 crore.

    The company has two segments – Music and Television Serials (TV).

    Music segment reported 5.2 per cent y-o-y decline in operating revenue to Rs 31.23 crore from Rs 39.24 crore and declined 2.7 per cent q-o-q from Rs 32.11 crore. Music segment reported 44.4 per cent y-o-y decline in operating profit to Rs 6.1 crore in the current quarter from Rs 32.94 crore and 45.8 per cent q-o-q decline from Rs 11.25 crore.

    Saregama’s TV segment reported 27.1 per cent y-o-y decline in operating revenue in Q2-17 to Rs 16.67 crore from Rs 22.86 crore, but a 2,8 per cent q-o-q increase from Rs 16.22 crore. TV segment operating profit declined 53.9 per cent y-o-y to Rs 1.61 crore from Rs 3.49 crore and declined 35.6 per cent q-o-q from Rs 2.50 crore.

    Let us look at the other numbers reported by Saregama

    Saregama also reports revenue from three streams –‘Net Sales Income’, ‘License Fee’, and ‘Other’. Net Sales Income in Q2-17 declined 23.1 per cent y-o-y to Rs 17.93 crore (37.4 per cent of TIO) from Rs 23.31 crore (41.8 per cent of TIO), but increased 5 per cent q-o-q from Rs 17.08 crore (35.3 per cent of TIO).

    License Fees income in the current quarter declined 7.9 per cent y-o-y to Rs 29.89 crore (62.4 per cent of TIO) from Rs 32.44 crore (58.1 per cent of TIO) and declined 4.1 per cent from Rs 31.18 crore (64.5 per cent of TIO) in Q2-16.

    Other Income in the current quarter was Rs 0.08 crore; Rs 0.05 crore in Q2-16; and Rs 0.07 crore in the immediate trailing quarter.

    Saregama’s Total Expense in the current quarter at Rs 48.76 crore (101.8 per cent of TIO) was 9.9 per cent less than the Rs 54.14 crore (97 per cent of TIO) in Q2-16, but was 7.0 per cent more than the Rs 48.33 crore (94.3 per cent of TIO) in Q1-17.

    The company’s Royalty Fee expense in Q2-17 at Rs 4.25 crore (8.9 per cent of TIO) declined 20.4 per cent y-o-y from Rs 5.34 crore (9.6 per cent of TIO) but increased 1.2 per cent q-o-q from Rs 4.20 crore (8.7 per cent of TIO).

    Saregama’s advertising and sales promotion expense in Q2-17 at Rs 4.74 crore (9.9 per cent of TIO) increased 12.9 per cent y-o-y from Rs 4.20 crore (7.5 per cent of TIO) and increased 3.7 per cent q-o-q from Rs 4.57 crore (9.5 per cent of TIO).

    Employee Benefit Expense in the current quarter at Rs 8.98 crore (18.7 per cent of IO) was 21.3 per cent lower than the Rs 11.41 crore (20.4 per cent of TIO) in Q2-16 but 0.8 per cent more than the Rs 8.91 crore (18.94 per cent of TIO) in the immediate trailing quarter.

  • Lower TV segment revenue adds to Saregama Q2-17 numbers downturn

    Lower TV segment revenue adds to Saregama Q2-17 numbers downturn

    BENGALURU: Indian custodians of music company Saregama Limited (Saregama) reported 14.2 per cent year-over-year (y-o-y) and 0.9 per cent quarter-over-quarter (q-o-q) declines in total income from operations (TIO) for the quarter ended 30 September 2016 (Q2-17, current quarter). The company reported TIO of Rs 47.90 crore in Q2-17, Rs 55.80 crore in Q2-16 and Rs 48.33 crore in Q1-17. The company also saw a decline in Net Sales revenue as well as License Fees revenue in the current quarter.

    The company’s profit after tax (PAT) in Q2-17 declined to less than half (1/2.25 times) y-o-y to Rs 1.15 crore (2.4 per cent margin) from Rs 2.59 crore (4.6 per cent margin) and declined 34.7 per cent q-o-q from Rs 1.76 crore (3.6 per cent margin). EBIDTA including other income in Q2-17 declined 26.8 per cent y-o-y to Rs 4.06 crore and declined 12.1 per cent q-o-q from Rs 4.62 crore.

    The company has two segments – Music and Television Serials (TV).

    Music segment reported 5.2 per cent y-o-y decline in operating revenue to Rs 31.23 crore from Rs 39.24 crore and declined 2.7 per cent q-o-q from Rs 32.11 crore. Music segment reported 44.4 per cent y-o-y decline in operating profit to Rs 6.1 crore in the current quarter from Rs 32.94 crore and 45.8 per cent q-o-q decline from Rs 11.25 crore.

    Saregama’s TV segment reported 27.1 per cent y-o-y decline in operating revenue in Q2-17 to Rs 16.67 crore from Rs 22.86 crore, but a 2,8 per cent q-o-q increase from Rs 16.22 crore. TV segment operating profit declined 53.9 per cent y-o-y to Rs 1.61 crore from Rs 3.49 crore and declined 35.6 per cent q-o-q from Rs 2.50 crore.

    Let us look at the other numbers reported by Saregama

    Saregama also reports revenue from three streams –‘Net Sales Income’, ‘License Fee’, and ‘Other’. Net Sales Income in Q2-17 declined 23.1 per cent y-o-y to Rs 17.93 crore (37.4 per cent of TIO) from Rs 23.31 crore (41.8 per cent of TIO), but increased 5 per cent q-o-q from Rs 17.08 crore (35.3 per cent of TIO).

    License Fees income in the current quarter declined 7.9 per cent y-o-y to Rs 29.89 crore (62.4 per cent of TIO) from Rs 32.44 crore (58.1 per cent of TIO) and declined 4.1 per cent from Rs 31.18 crore (64.5 per cent of TIO) in Q2-16.

    Other Income in the current quarter was Rs 0.08 crore; Rs 0.05 crore in Q2-16; and Rs 0.07 crore in the immediate trailing quarter.

    Saregama’s Total Expense in the current quarter at Rs 48.76 crore (101.8 per cent of TIO) was 9.9 per cent less than the Rs 54.14 crore (97 per cent of TIO) in Q2-16, but was 7.0 per cent more than the Rs 48.33 crore (94.3 per cent of TIO) in Q1-17.

    The company’s Royalty Fee expense in Q2-17 at Rs 4.25 crore (8.9 per cent of TIO) declined 20.4 per cent y-o-y from Rs 5.34 crore (9.6 per cent of TIO) but increased 1.2 per cent q-o-q from Rs 4.20 crore (8.7 per cent of TIO).

    Saregama’s advertising and sales promotion expense in Q2-17 at Rs 4.74 crore (9.9 per cent of TIO) increased 12.9 per cent y-o-y from Rs 4.20 crore (7.5 per cent of TIO) and increased 3.7 per cent q-o-q from Rs 4.57 crore (9.5 per cent of TIO).

    Employee Benefit Expense in the current quarter at Rs 8.98 crore (18.7 per cent of IO) was 21.3 per cent lower than the Rs 11.41 crore (20.4 per cent of TIO) in Q2-16 but 0.8 per cent more than the Rs 8.91 crore (18.94 per cent of TIO) in the immediate trailing quarter.