According to a senior executive at a music licensing platform, the music industry is loosing on INR 3,600 crore revenue annually due to unlicensed song usage with out paying licensing fee. But, this is not the case with the industry norms at the moment and it is due to fragmented compliance and poor awareness of copyright norms.

As per an independent music analysts, the estimated Indian music industry loses a whooping INR 8000-10000 crore  annually in royalties due to tax enforcement of rules. 

Today, we have been witnessing quite an increase in lawsuits alleging music copyright infringement. Recently, a few high-profile copyright battles over the music came to light such as Sony Music versus Myntra, Saregama versus Emami, and Sony Music versus the Marriott Group. 

And the latest to join this growing list is Zee Entertainment Enterprises against FSN E-commerce Ventures, which owns the Indian retailer Nykaa that sells beauty wellness and fashion products.

As per the Copyright Act of 1957, Zee has argued that FSN E-cCommerce used its songs in roughly a dozen Instagram reels to promote its brand with permission or a license. Music labels believe that many companies and  the influencers they hire are unaware of the finer points of the copyright violations. 

The core problem here is the confusion between personal expression, which is typically platform-lincensed, and commercial use, which needs separate permission , agreement and payment.

Factors Contributing to the Rise in Copyright Violations

Rise in music copyright violations is synonymous with India’s growing Creator Economy coupled with the explosive growth of short-form video platforms. In today’s time, copyrighted songs have become a powerful marketing tool with brands increasingly relying on Instagram Reels, YouTube Shorts, and influencer-led campaigns to drive engagement.

However, a critical misunderstanding still persists - Many businesses believe that if a song is available inside Instagram or Meta’s music library, it is automatically safe for commercial use. 

In reality, platform-level permissions often apply only to personal or non-commercial content, whereas brand campaigns, sponsored collaborations, and influencer promotions generally require additional licensing agreements from copyright owners. This legal ambiguity has triggered a wave of lawsuits involving brands and music labels.

Requesting anonymity, a lawyer said “Today, brands routinely collaborate with influencers and creators to produce organic or branded content that blurs the line between personal expression and commercial promotion.” 

He further added, “However, under such collaborations, where there is any exchange of value, constitute branded content, which falls in the realm of commercial use.” 

Difference Between Personal and Commercial Use of Music

One of the biggest legal grey areas in India’s digital ecosystem is the distinction between personal expression and commercial exploitation.

For example:

Typically Allowed (Platform-Licensed Use)

• A personal Instagram reel can use trending audio

• Audio can we used for non-sponsored creator content without brand association

• Audio can be used for personal storytelling or entertainment posts

Typically Requiring Separate Licensing

• Brand advertisements using popular songs require license

• Influencer collaborations involving paid partnerships require license

• Product promotions with copyrighted music require license

• Sponsored campaigns on Instagram or YouTube require license

“A popular song drives engagement in a reel or a video by two times,” says Gaurav Dagaonkar, Co-founder at Hoopr, a platform that helps brands get licensed music. “When companies use music owned by labels in their brand promotions, they often don’t realise they are using the labels’ intellectual property. So, when brands use music without permission, they take away revenue that labels would earn from licensing."

Other Industry Leaders’ Say on Copyright & Licensing

Blaise Fernandes

Blaise Fernandes of the Indian Music Industry has consistently argued that stronger copyright enforcement is essential for sustaining India’s creative economy. He has emphasized that creators and rights holders must be fairly compensated if India aims to become a global entertainment powerhouse.

Vikram Mehra

Vikram Mehra has previously spoken about the need for greater awareness regarding digital music licensing, especially as brands increasingly integrate nostalgic and viral songs into advertising campaigns.

Mandar Thakur

Mandar Thakur has stressed that copyright protection is not merely a legal issue but a creator-economy issue, since royalties directly support artists, musicians, and composers.

How Brands and Influencers Can Avoid Copyright Lawsuits

The broader music licensing market could unlock substantial additional value if businesses systematically paid for commercial music usage instead of relying on unauthorized use. This issue becomes even more important as India positions itself among the world’s fastest-growing digital content and creator markets.

To reduce legal exposure, experts suggest that brands and creators must adopt a “license-first” approach:

1. Secure Commercial Music Licences

Brands should always confirm whether additional licensing permissions are required before using copyrighted songs in paid promotions.

2. Use Copyright-Safe Music Libraries

Businesses should leverage licensed music marketplaces which are specifically built for commercial content.

3. Audit Influencer Contracts

Before facilitating brand agreements, a clearly defined responsibility for copyright compliance should be ensured, especially when creators produce sponsored content.

4. Train Marketing Teams

Platform licensing policies must be thoroughly understood by internal social media teams.

If followed, these preventive measures can help brands avoid reputational damage, litigation costs, and takedown notices.

Conclusion

As India’s creator economy expands and short-form video marketing becomes mainstream, music licensing is rapidly emerging as a major compliance issue for brands, influencers, and agencies. 

The growing number of copyright disputes—from media houses to e-commerce giants—signals a broader shift toward stricter enforcement. Going forward, businesses may need to rethink their content strategies, moving from a “use-first” culture to a “license-first” approach to avoid litigation and ensure fair compensation for creators.