One song can contain several rights
When a Bollywood song plays in a film, on a streaming app, at a concert or inside a restaurant, the same recording can involve different layers of copyright. The underlying musical composition, the lyrics and the final sound recording are not automatically the same asset.
That distinction explains why a business may need permission from more than one rights administrator. The Indian Performing Right Society represents musical and literary works for participating authors, composers and publishers. Sound-recording rights are generally controlled separately by the label or another owner.
IPRS states in its official licensing guide that a licence for a sound recording does not by itself cover the underlying music and lyrics. When both are used, separate permissions may be required from the relevant owners or administrators.
The film producer and music label deal
Before release, a producer may sell or license the film's music rights to a label. The price depends on the cast, composer, singers, marketing plan and expected replay value. A soundtrack attached to a major franchise can command more because the songs receive immediate visibility.
The label then distributes the tracks and videos across streaming services and video platforms. Revenue can come from advertising, paid subscriptions, downloads, caller tunes, sync use and licensing to commercial users.
The exact split is contractual. A large upfront sale may give the producer certainty, while the label takes the risk that listeners do not return. A revenue-sharing arrangement can preserve long-term upside but pays less immediately.
How composers and lyricists receive royalties
Authors and composers can receive royalties when their protected works are publicly performed, broadcast or communicated under applicable licences. A collecting society licenses repertoire, gathers fees and distributes money according to its rules and usage information.
Accurate metadata is essential. A song title alone is not enough; the system needs correct composer, lyricist, publisher and ownership shares. Missing or conflicting data can delay a distribution even when the song is widely played.
Royalty income is not necessarily equal for everyone involved. A playback singer's rights and payment can arise from a different contract or legal category than the composer's publishing share. The label's sound-recording revenue is also separate from the money linked to the composition and lyrics.
Where the money comes from
Common commercial uses include:
- audio and video streaming;
- radio and television broadcasts;
- concerts, festivals and award shows;
- restaurants, malls, gyms and hotels playing music;
- advertisements, games and new films that synchronise an existing song;
- international licensing through affiliated societies.
IPRS says public performance or communication of music under its control generally requires a licence regardless of whether the venue charges admission. Its guide lists broadcasters, streaming services, live events, retail spaces and hospitality businesses among the users that may need permission.
Domestic listening is different from commercial public use. Buying a subscription or a recording gives the listener access under the service terms; it does not automatically grant a business the right to play that music for customers.
Why old Bollywood catalogues are valuable
A new film soundtrack earns attention during promotion, but a catalogue can generate revenue for decades. Classic songs return through remixes, short-form video, television, weddings, concerts and nostalgia playlists.
Predictable catalogue listening can make older rights attractive to investors and labels. The risk is ownership complexity. Decades-old contracts may use language written before streaming existed, leading to disputes over who controls a new format or territory.
Remixes add another layer. A producer may need permission for the underlying composition and for the original recording if that master is sampled. Re-recording the song can avoid use of the old master but does not erase the composition and lyric rights.
What creators should check
Creators should register works accurately, keep written contracts and verify how each revenue stream is defined. A promise of “royalties” means little without the percentage, base amount, deductions, territory and reporting schedule.
Commercial users should identify both the recording owner and the owners of the music and lyrics. The safest approach is to obtain the appropriate licences rather than rely on myths such as a universally free number of seconds.
Bollywood music is both culture and a layered rights business. Understanding those layers shows why a hit song can keep earning long after a film leaves cinemas.
Explore more industry coverage in our Bollywood section.
