Royalty-related case against Indreni Banquet and LOD, warning to nearly 50 areas

Kathmandu. For the first time in Nepal, a royalty-related case has been registered with the police against copyright infringement by ignoring the provisions of the law on paying royalties for public use of songs and music. On behalf of the Music Royalty Collection Society, the District Government Attorney's Office, Kathmandu, registered a case against Indreni Banquet Pvt. Ltd. and Lord of the Drinks (LOD) at the District Police Complex, Bhadrakali on Friday.

There are about fifty areas that should come under the scope of royalty. The society has been urging and writing to everyone to come under the scope of royalty and get permission. But no case has been registered institutionally against the violation of the provisions of the Copyright Act 2059 and Regulations 2061 before. After the last case was registered against two organizations, the door to action has been opened against other areas and organizations that violate the law. Article 25 under Fundamental Rights and Duties in Part 3 of the Constitution of Nepal, 2072, provides the right to intellectual property like any other property.

Royalty is the fee paid to the creator of a song or music (intellectual property). Royalty is a mandatory fee that must be paid by the public user after it is used. Using a song or music (intellectual property) without paying royalty is a legal offense. For which the Copyright Act, 2059, provides for punishment. Nepal is also a signatory to the UN Convention on Intellectual Property and the Rome Convention.

If anyone uses songs (intellectual property) in public without paying royalties, he will be punished with a fine of ten thousand rupees to one hundred thousand rupees or imprisonment for six months, or both, depending on the severity of the offense as prescribed by the Copyright Act, 2059. For the second and subsequent offenses, a fine of twenty thousand rupees to two hundred thousand rupees or imprisonment for one year, or both. There is also a legal provision to confiscate the materials used in the wrongdoing and pay compensation for the damage. In addition, since non-payment or evasion of royalty also results in evasion of the state's share of the tax that is included in the royalty, one should also be involved in the action prescribed by law for the crime of revenue evasion.

It is understood that the Music Royalty Collection Society is also preparing to file a case against reality shows in Nepal that use songs and music publicly and the organizations that broadcast them.

The 14th annual general meeting of the society had appointed Shiva Music as the agency to collect music royalties across the country as per Rule 10 ‘C’ of the Copyright Regulations 2061 BS. Tika Rai Shiva, Executive Director of Shiva Music, has said that they are working according to the MRCSN standards 2080. This standard has initiated the collection of royalties from various sectors such as radio, television, hotels, lodges, resorts, casinos, public transport, department stores, party halls, party palaces.