Mumbai: Zee Entertainment Enterprises Ltd has filed a copyright violation case against FSN E-Commerce Ventures, the owner of beauty and fashion retailer Nykaa, in the Delhi High Court.

Citing the Copyright Act of 1957, Zee claimed that FSN E-Commerce had used the former’s songs in brand promotion in about a dozen Instagram reels without seeking permission or licensing.

Senior counsel Abhishek Malhotra and Madhu Gadodia of Naik Naik & Co, representing FSN E-Commerce, however argued that Meta Platforms, Instagram’s parent and Zee’s licence partner, should be included as a necessary party.

The lawyers for Nykaa stated that Meta provides licensed music to all users as a standard feature and that using Instagram’s native music tools falls within the licencing agreement between Instagram and Zee. They also argued that without Meta’ involvement, a licensing framework cannot be properly reviewed. They said the order to remove content cannot be effectively enforced since only the platform has the authority to mute audio, remove content, or restrict access.

FSN E-Commerce informed the court that the twelve identified Instagram reels have been removed and are no longer accessible to the public.

Harsh Kaushik, the counsel for Zee Entertainment, instructed by Anushree Rauta of ANM Global, argued that the licensing agreement with the social media platform is for non-commercial use, whereas any commercial use requires prior approval and payment.

Zee Entertainment declined to comment stating that the matter is sub judice.

In the past two years, there have been three similar cases of music copyright violation. These include Sony Music-Myntra, Saregama-Emami, and Sony Music-Marriott Group.

Lack of clear understanding between personal expression and commercial exploitation of music is one of the key challenges resulting in copyright violations.

“Today, brands routinely collaborate with influencers and creators to produce “organic” or “branded content” that blurs the line between personal expression and commercial promotion,” said a leading lawyer requesting anonymity. “However, under platform policies, such collaborations, where there is any exchange of value, constitute branded content which falls in the realm of commercial use.”

Due to a lack of strict compliance, the Indian music industry is losing Rs8,000-10,000 crore annually in royalty payments, said independent music analysts. According to a senior executive at a leading music licencing platform, the music industry may earn at least Rs 3,600 crore if all commercial videos are paid a minimum fee.

“A popular song drives engagement in a reel or a video by two times,” said Gaurav Dagaonkar, cofounder and CEO at Hoopr, a leading platform for music licensing which serves 125 brands in securing licensed music.

“When companies use music owned by labels in promotional content of their brands, they don’t realize that they are using intellectual properties (IPs) of labels. So, when brands use music without labels’ permission, they deprive labels of revenues emanating from licencing music.”

Some labels attribute low awareness among companies about the nuances of music copyright violation.

“Such cases create awareness among companies about music copyright violation,” said Shivansh Jindal, CEO, Merchant Records, a label launched by music composer duo Salim-Sulaiman. “Today, we live in a digital world where music is democratized. So, companies may not fathom the gravity and consequences of using music of labels or independent artists without their permission or paying them.”

In the Zee-FSN E-Commerce case, Justice Tushar Rao Gedela granted on April 30 two weeks to FSN E-Commerce to file its response and gave a week to Zee to reply. The next hearing is slated for May 26.