With music composer Tanishk Bagchi recently claiming he is yet to receive royalties for his work on Yash Raj Films\u2019 musical hit Saiyaara, released over a year ago, experts said the Bollywood royalty debate highlights a gap between what the law intended to protect and what artists ultimately receive.<\/p>\n
The Copyright Act provides meaningful safeguards to authors and composers, but legal rights are only as effective as the contracts that implement them. Many musicians, particularly at the beginning of their careers, are inclined to prioritize visibility and association with major banners over negotiating long-term revenue participation. Deals are finalized long before a song becomes a commercial phenomenon.<\/p>\n
\u201cThe real issue lies in the commercial bargain,\u201d said Dikshat Mehra, a partner at Rajani Associates. \u201cRoyalty entitlement ultimately depends on how rights are structured, licensed and monetized under the contract. As a result, many disputes are less about gaps in the law and more about the commercial terms agreed between the parties.\u201d<\/p>\n
Emphasizing that it not an issue with any individual production house but the manner in which the industry operates, Shoubhik Dasgupta, a partner at Pioneer Legal, said the 2012 amendment that provided a right to royalty to artists also specified that any assignment of copyright would require royalties to be shared on an equal basis.<\/p>\n
As stated by Yash Raj Films, royalties are split equally among three co-composers \u2013 Bagchi, Faheem Abdullah and Arslan Nizami. What is unclear is how the pool from which the equal shares emanate is calculated. The problem also lies in execution.<\/p>\n
\u201cRoyalty structures in the entertainment industry are often opaque, with revenues generated across multiple platforms and stakeholders. There is no uniform practice for disclosures, periodic reporting or independent verification of earnings,\u201d said Sonam Chandwani, managing partner at KS Legal & Associates. \u201cAs a result, artists frequently find themselves questioning whether they have been adequately compensated, even when payments have technically been made under the contract.\u201d<\/p>\n
She added that greater transparency and standardized accounting mechanisms would go a long way in building trust within the sector.<\/p>\n
Germaine Pereira, a partner at Solomon & Co, pointed out that copyright comprises a bundle of rights. One song involves multiple composers, lyricists, performers, producers, music labels, publishers and streaming platforms. If a musician does not own or control the relevant rights, they may receive only a small revenue share and lose out on long-term royalties.<\/p>\n
According to Rohith Sobti, curator and founder of The Shakti Collective, an artist-first cultural house building a structured ecosystem for music, storytelling and cultural IP, royalties are not generated through a single transaction but flow through multiple stakeholders including producers, music labels, publishers, collecting societies, digital platforms and distribution partners.<\/p>\n
In many instances, what appears to be a royalty dispute is actually a reflection of fragmented rights administration rather than the absence of legal protection. Legacy agreements, evolving business models, cross-platform exploitation and differing commercial interpretations can all contribute to delays or disagreements, Sobti pointed out.<\/p>\n
For instance, a composer or lyricist, upon assigning their rights to a producer, will not be privy to any contract between that producer and third parties such as streaming platforms and broadcasters, said Bharadwaj Jaishankar, a partner at CMS INDUSLAW. As a result, while the author is entitled to an equal share of the royalties as the producer, the amount of royalty to be divided, and whether that amount has been accurately accounted for, cannot easily be ascertained by them.<\/p>\n
\u201cRoyalty distribution depends on accurate ownership information, complete metadata, proper registration of works, usage reporting and transparent contractual documentation across multiple stakeholders,\u201d said Rakesh Nigam, CEO of the Indian Performing Rights Society, which collects royalty on behalf of musicians and then distributes them. \u201cDelays or disputes can arise when ownership shares are unclear, registrations are incomplete, contractual terms differ, or usage information is unavailable.\u201d<\/p>\n
Not all delays, however, stem from administrative gaps, Nigam added. In several cases, music users refuse to accept the author's share of royalty and decline to take a licence, using litigation as a strategy to avoid or delay payment. Since court cases can take years, sometimes decades, to settle, and there is no penalty for delayed payment, this becomes a way to either avoid payment altogether or defer it indefinitely.<\/p>\n
\u201cAn equally important aspect is awareness. As the music ecosystem becomes increasingly complex, creators need a clear understanding of how rights flow through the industry, what they own, and how different rights are monetized,\u201d Nigam said.<\/p>\n
Many artists rely on managers, publishers, labels or legal representatives to negotiate and administer commercial agreements, Nigam added. While this is a natural part of the business, creators should remain informed about the contracts governing their intellectual property, as these decisions have a direct impact on their long-term earnings, he said.<\/p>\n