IPRS authorizes the use of copyrighted music by issuing user licenses and collects royalties on behalf of its members (music authors, composers and publishers). Meanwhile, shares of Zee Entertainment Enterprises Ltd closed at Rs 242.50 on BSE, or Rs 242.50, up 1.08 per cent.
Major media company Zee Entertainment Enterprises Ltd (ZEEL) said on Monday (January 2) that its operating creditor, the Indian Performing Rights Society (IPRS), has filed a bankruptcy suit against the company for Rs 211 crore. In an exchange document, the company said: Corporate bankruptcy process for the company. ”
However, ZEEL said it plans to file a response denying the claim by the Indian Performing Rights Society Ltd. The claim is Rs 211.4 million for royalties paid for the use of his literary and musical works.
“The company intends to file a response denying the claim on the grounds, inter alia, that there is an existing dispute between the parties as to the amount claimed and the claim is inconsistent with the interpretation of the law.” “Payments for royalties for literary and musical works, and therefore the amounts charged, should not be paid to IPRS,” ZEEL said.
IPRS authorizes the use of copyrighted music by issuing user licenses and collects royalties on behalf of its members (music authors, composers and publishers). Royalties are divided among members after deducting IPRS administrative fees.
Last month, IDBI Bank filed a National Company Law Tribunal (NCLT) suit against ZEEL, which is seeking to initiate bankruptcy proceedings against the media company to collect membership fees. IDBI Bank has charged a membership fee of Rs 149.6 million disputed by ZEEL as per regulatory updates from media companies.
ZEEL had previously announced a merger with rival Culver Max Entertainment (formerly Sony Pictures Network India) in December 2021. The merger has been approved by the Competition Commission of India (CCI) with certain conditions along with other bodies such as NSE and BSE. Shareholders and creditors have already approved the merger.
Zee Entertainment Enterprises Ltd shares closed at Rs 242.50, up 1.08% at Rs 2.60, or BSE.