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General Studies Prelims

General Studies (Mains)

Bombay High Court Reviews Actor’s Copyright Tax Challenge

The Copyright Act of 1957, a key legal piece of India’s Intellectual Property (IP) realm, has recently come into the spotlight. An interesting case in the Bombay High Court concerning an actor’s income from advertisements and award shows has raised crucial questions about the intersection of intellectual property, performer’s rights, and taxation in India.

The Dispute in Focus

The heart of the matter involved a popular actor challenging the sales tax leveraged on her earnings from advertisements and award show performances. The tax department’s stand was that she was effectively selling her copyright, thereby owing an indirect tax. The actor rebutted this claim, referencing Section 2 (d) of the Copyright Act. According to her, the producers, being the original creators, held the copyright over the respective videos, preventing her from selling or transferring it. She further claimed to be a ‘performer’ under the law and pointed out that she had obtained performer’s rights under section 38 and 38A of the Copyright Act.

Understanding Performer’s Rights

Performers’ rights are a result of the 2012 amendment to the Copyright Act of 1957. According to Section 38 of the Act, artists such as singers and actors hold “Performer’s Rights” for their artistic endeavors in literary works, films, and songs. These rights protect the artist’s work for 50 years after the performance. Notably, these rights cannot be transferred, sold through an agreement or bought by production houses. By retaining ownership, the artist ensures fair remuneration for their work.

Decoding the Copyright Act 1957

India’s Copyright Act is a comprehensive legislation that overlooks the protection of original works of literature, art, music, films, and computer programs in the country. This Act is more about safeguarding expressions of ideas rather than ideas themselves.

The owner of a copyright enjoys exclusive rights to adapt, reproduce, publish, translate, and communicate their work to the public. The Act underwent numerous revisions since its inception in 1958, with the most recent modification occurring in 2012.

Key sections of the act include section 13, which provides copyright protection to multiple types of works, including literary works, musical pieces, and cinematographic films. In comparison, section 14 grants the copyright owner an exclusive set of rights, such as reproducing, translating, and communicating the work to the public.

Additional Changes in Copyright Rules

In addition to modifications in the main act, the government also introduced the Copyright (Amendment) Rules 2021. These new rules aim to align copyrights with other relevant laws. They introduce provisions for increased accountability and transparency in royalty collection and distribution and merge the Copyright Board with the Appellate Board. The new rules also simplify compliance requirements for software registration.

Moreover, the Central Government now has a 180-day window to respond to an application for registration as a copyright society. This change represents a significant stride towards ensuring timely responses to applications.

UPSC Civil Services Examination: Sample Questions

Several archival questions from the UPSC Civil Services Examination are pertinent to understanding this issue deeper. For instance, a 2017 question on India’s ‘National Intellectual Property Rights Policy,’ and a 2019 question that dealt with aspects of the Indian Patents Act are examples of the kind of problems aspiring civil servants might face on this topic. A potential Mains question could involve differentiating between various components of intellectual property rights, like copyrights, patents, and trade secrets.

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