In a Hotel Cable TV Copyright Licence case, Calcutta High Court holds that hotels may need a separate copyright licence to provide cable TV content to guests in hotel rooms.
The Business Behind the Case
Hotel Appolo & Tours Private Limited operates a hotel business under the name Appolo Hotel. The hotel had television sets installed in its rooms and provided cable television connections to its guests.
The copyright dispute arose because the television channels carried literary and musical works in which members of The Indian Performing Right Society Limited (IPRS) claimed copyright.
IPRS alleged that the hotel was commercially communicating these works to its guests without obtaining the required copyright licence and without paying the applicable royalty.
What Happened?
The hotel obtained cable connections from a cable operator and provided those connections in its individual hotel rooms. Guests could then watch the television content through the cable connection.
The hotel’s position was straightforward. It had already paid the cable operator for the cable connections. According to the hotel, the cable operator had the necessary broadcasting rights and, therefore, the hotel should not have to obtain another licence or pay royalty separately to IPRS.
IPRS disagreed.
It argued that allowing hotel guests to access the copyrighted literary and musical works through televisions installed in hotel rooms amounted to communication to the public and commercial exploitation of those works. Therefore, the hotel needed its own licence.
The Problem That Triggered Legal Action
The commercial problem was essentially this:
Was paying the cable operator enough, or did the hotel also need a separate copyright licence to provide the content to its guests?
IPRS demanded that the hotel obtain the requisite licence and pay royalty. The hotel did not agree.
IPRS consequently filed a commercial suit seeking, among other things, a permanent injunction, an injunction against unauthorized public performance or communication, rendition of accounts and damages of ₹9 lakh.
IPRS also sought an interim injunction to stop the hotel from communicating the copyrighted works to its guests without a licence.
How Did the Matter Reach the Court?
The District Judge, Darjeeling initially refused to grant the temporary injunction sought by IPRS.
The Trial Court took the view that the broadcasting right was distinct and that the plaintiff had not established a sufficient prima facie case for an injunction.
IPRS challenged that order before the Calcutta High Court in FMA 322 of 2025.
What Was the Legal Issue?
The central question before the High Court was:
Does a hotel that provides cable television content to guests in its rooms need a separate copyright licence, even when the cable operator has already obtained rights to broadcast the content?
The Court also had to examine whether such use amounted to communication to the public and commercial exploitation of copyrighted literary and musical works.
Legal Framework
The dispute primarily involved the proceedings under:
- Copyright Act, 1957
- Section 2(ff), communication to the public
- Section 17, first ownership of copyright
- Sections 18 and 19, assignment of copyright
- Section 30, licences by copyright owners
- Section 51, infringement of copyright
- Section 52(1)(k), acts that do not constitute infringement
- Section 39A, application of certain provisions relating to broadcast reproduction rights
- Cable Television Networks (Regulation) Act, 1995
- Section 2(i), definition of subscriber
- Code of Civil Procedure, 1908
- Order XXXIX Rules 1 and 2, temporary injunction
- Section 151, inherent powers of the Court.
What Did the Court Decide?
The High Court rejected the hotel’s argument that its payment to the cable operator eliminated the need for a separate copyright licence.
A key distinction was drawn between the cable operator’s right to broadcast and the hotel’s use of that broadcast as a commercial facility for its guests.
Under the Cable Television Networks (Regulation) Act, a subscriber receives cable signals at a specified place without further transmitting them to another person. The Court noted that the hotel’s cable service was being used by hotel guests, who were persons other than the subscriber.
The Court also relied on Section 2(ff) of the Copyright Act, which expressly treats communication through satellite or cable to more than one household or place of residence, including residential rooms of a hotel or hostel, as communication to the public.
The Court further observed that although the hotel may not have charged guests separately for television services, providing the service was an additional facility that added commercial value to the hotel business. It therefore constituted commercial exploitation of the literary and musical works.
What the Court Upheld in this Hotel Cable TV Copyright Licence case?
The Calcutta High Court held that the hotel was infringing the copyright in the literary and musical works because it was commercially utilizing those works without paying the requisite royalty.
The Court found that IPRS had established a strong prima facie case, that the balance of convenience favoured IPRS, and that unauthorized commercial use could cause irreparable injury.
The Trial Court’s order refusing the temporary injunction was therefore set aside.
The High Court allowed IPRS’s interim injunction application and restrained the hotel from publicly performing or communicating the relevant works without the required licence and royalty. The appeal was allowed without an order as to costs.
Business Takeaway
Paying a service provider does not necessarily mean that every downstream commercial use of the service is legally licensed.
For hotels and other commercial establishments, a licence obtained by a broadcaster or cable operator may not automatically cover the establishment’s own use of copyrighted content as a commercial amenity for its customers or guests.
The information in this article is general in nature and should not be relied upon as legal advice. If you require any further information, you may reach out at hello@lawfluencers.com.