Background: One Client company dealing with a retail chain intended to procure certain music compositions on a license basis from a private company. Some of these compositions were already procured by the private company on a license basis, however according to the contract the same were to be sub-licensed to the Client. Therefore, the legality of sub-licensing of copyrights had to be analyzed and the Client had sought legal advice on the same.
Challenge: The preliminary challenge was to understand the legal position of sub-licensing of copyright under the Copyright Act,1957 based on interpretation, precedents, reasoning and apply it to the Client’s situation.
Approach and Strategy: The Copyright Act provides for circumstances in which a copyright may be licensed or subsequently sub-licensed. Relevant sections of the Act were interpreted to mean that the owner of the copyright has unrestricted power to grant any interest to the licensee in writing by himself or through his duly authorized agent. Through judicial precedents it was deduced that the same power to grant any interest in writing was interpreted to include the right to sub-license as well. Therefore, the Client was advised to go ahead with the sub-licensing agreement.
Conclusion – Client entered into the said sub-licensing agreement after all necessary due diligence.