PPL Copyright Issue | Third Parties Not Exempt From Paying License Fee to PPL Because Of Stay in Azure's Favor: Supreme Court

In the ongoing legal dispute between Phonographic Performance Ltd. (PPL) and Azure Hospitality, the Supreme Court recently issued a clarification on its previous stay order dated 21 April 2025. This clarification came in response to a petition seeking further interpretation of the Court’s earlier ruling, which had paused the enforcement of the Delhi High Court’s directive issued on 15 April 2025 in Azure Hospitality (P) Ltd. v. Phonographic Performance Ltd. The Division Bench of Justices Ujjal Bhuyan and Manmohan confirmed that the PPL copyright issue, third parties not exempt from paying license fee to PPL because of stay in Azure's favor, stay granted on the High Court’s direction will remain applicable specifically between PPL and Azure Hospitality.

PPL, a company registered under the Companies Act, 2013, manages public performance rights for over 400 music labels through assignments made under Section 18 of the Copyright Act, 1957. The company had earlier held registration as a copyright society under Section 33 of the Act but relinquished the same in 2014 following statutory amendments. Azure Hospitality operates restaurants and bars like ‘Mamagoto’, ‘Dhaba’, and ‘Sly Granny’ across India, including in Delhi. After observing unauthorized usage of its sound recordings at Azure's premises, PPL issued a cease-and-desist notice on 20 June 2022. Despite this, infringement allegedly continued, prompting PPL to file a suit in the Delhi High Court.

On 3 March 2025, a Single Judge of the Delhi High Court provisionally held that Azure's use of PPL’s recordings constituted copyright infringement under Section 51 and ordered an interim restraint on such usage. Azure appealed, and on 15 April 2025, the Division Bench altered the lower court's order, allowing Azure to use the recordings subject to payment per the RMPL tariff. This payment arrangement was to remain conditional upon the final outcome of the suit.

PPL then approached the Supreme Court, which on 21 April 2025 stayed the High Court’s payment directive but clarified that the Single Judge’s initial restraint would also not be in force. The latest clarification on 19 June 2025 reinforces that the stay specifically governs the rights and obligations between PPL and Azure.

Case details- [Phonographic Performance Ltd. v. Azure Hospitality (P) Ltd, Special Leave to Appeal (C) No(s). 10977/2025, decided on 19-6-2025]