In the case of Phonographic Performance Limited v Al-Hamd Tradenation, Phonographic Performance Limited (PPL) filed a civil suit against Al-Hamd Tradenation (Al-Hamad) in the Delhi High Court, seeking to restrain Al-Hamad from infringing PPL’s copyrighted works/sound recordings in an event without obtaining a requisite license from PPL.
PPL contented that Al-Hamad had refused to take a proper license at PPL’s current tariff rate, instead offering a significantly lower amount and even threatening to file a petition seeking compulsory licensing if PPL did not agree to issue license to Al-Hamad at the reduced rate.
Al-Hamad contented that the license fee quoted by PPL was unreasonable and that it had already filed a petition for compulsory license before the Court. Compulsory licensing for copyrighted work allows the use of such works by paying a fee determined by the Court.
The Court remarked that PPL’s copyright in the sound recordings must be protected and directed that if Al-Hamad wishes to use these recordings, it should approach PPL for obtaining license and pay license fees, as demanded by PPL.
This decision underscores that filing of a petition seeking compulsory license in plaintiff’s copyrighted works by a defendant cannot be basis in itself to deny protection to plaintiff’s copyrighted works and permit the defendant to exploit such works without paying the requisite license fee to the plaintiff.