That catchy song in your ad could land you in legal trouble

The Indian music industry loses an estimated Rs 8,000–Rs 10,000 crore (Annexure added below to understand how we arrive at this number) annually to unlicensed music usage. These losses represent unpaid royalties that rightfully belong to artists, composers, and labels—funds that could otherwise fuel new music creation, empower independent talent, and drive growth across the wider creative economy.

When creativity turns into copyright trouble

India’s short-form content ecosystem is enormous. Every month, over 1 million branded videos are shared by more than 80,000 brands and 550,000 creators—many of them powered by music. For brands, music is more than creative flair; it’s a performance driver, capable of turning an ordinary ad into one that captures attention and goes viral. 

Yet while creativity flows freely, music licensing often does not. As a result, copyright infringement—whether deliberate or accidental—has quietly become one of the most common and risky practices in digital marketing.

Music copyright violations across sectors

A common misconception is that music copyright violations are confined to small or unorganised businesses. In reality, infringement is widespread and spans multiple industries.

Some of the most frequent offenders are not resource-constrained enterprises but rather well-funded startups and established private companies—particularly in sectors such as food, fashion, and travel. 

These industries thrive on creating large volumes of visually compelling digital content, where music plays a central role in engaging audiences.

A recurring practice among these brands is the adaptation of trending audio tracks to align with cultural moments, consumer interests, and platform-specific trends. While such practices often boost engagement, they frequently bypass formal licensing, leading to large-scale copyright violations.

Sectoral trends

●    Food & beverages

Direct-to-consumer (D2C) snack, beverage, and packaged goods brands often leverage viral songs as a way to position themselves as youthful, dynamic, and culturally relevant. By associating their campaigns with trending music, these brands attempt to build relatability and “cool factor” among younger audiences.

●    Fashion & beauty

Fast fashion brands, online marketplaces, and beauty retailers frequently integrate audio-driven trends into their campaigns. The use of popular tracks allows them to highlight seasonal looks, showcase influencer collaborations, and accelerate collection launches—creating rapid cycles of trend-driven content.

●    Travel & hospitality

Hotel chains, online booking platforms, and even luggage brands rely on music to craft aspirational narratives around experiences. By pairing trending audio with visual storytelling, these brands create content designed to evoke wanderlust and lifestyle aspirations.

Evidence of scale

An internal review of over 25,000 brand-created reels revealed that more than 62% used unlicensed copyrighted music. This indicates that copyright violations are not isolated or accidental but systemic in nature.

Many businesses continue to operate under the mistaken belief that social media platforms constitute a “safe space” for such practices—when in fact, the legal and financial risks are significant.

Use of trending music by brands: A risk analysis

Brands frequently assume the risk of using trending music without proper licensing due to the significant visibility benefits it provides. Social media algorithms are designed to prioritise trend-driven content, and music plays a central role in this dynamic. 

Data indicates that reels featuring trending audio achieve, on average, up to 17 times greater reach and 12 times higher engagement compared to those using royalty-free or original tracks.

Two primary factors drive this behaviour:

1.    Contextual relevance – for example, the use of festive music during cultural events such as Diwali or Ganesh Chaturthi.

2.    Virality through algorithmic promotion – when specific tracks, regardless of their origin, receive increased visibility due to platform-driven amplification.

Notably, the commercial appeal of a track—whether a global hit or an underground independent release—is less important than its trending status. As a result, many brands engage in unlicensed usage of music, leading to widespread infringement. 

This is particularly concerning when such practices are carried out by established companies that are expected to demonstrate higher compliance standards.

Rising copyright enforcement in the digital space

Previously, many brands operated under the assumption that they could use copyrighted music without consequence. However, this is no longer the case. Platforms such as Meta and YouTube have significantly intensified their copyright enforcement measures. 

On YouTube alone, nearly 3 million videos were removed in India between October and December 2024—the highest figure for any country during that period. Increasingly, content is being muted, demonetised, taken down, or entire channels banned, often through automated systems that detect violations before the content even reaches audiences.

Beyond platform-level enforcement, rights holders—including music labels and artists—are actively pursuing legal action against brands. Lawsuits are becoming more frequent, with penalties ranging from Rs 10 lakh to over Rs 5 crore, depending on the scale and severity of infringement. 

A prominent example is Sony Music’s lawsuit against a major fashion e-commerce platform in the Bombay High Court, seeking damages of Rs 5 crore for the unauthorised use of multiple sound recordings. 

This case underscores a broader shift: the previously ambiguous “grey zone” of music copyright is rapidly transforming into a clearly defined framework of legal accountability.

The licensing loophole in India

A major challenge in the Indian market stems from perception. While the Copyright Act of 1957 provides explicit protection for music, enforcement in the digital environment has been inconsistent. Many brands exploit the ambiguity of “fair use”, effectively treating music as a free utility rather than a licensed creative asset.

This perception is reinforced by precedent. When music streaming platforms first entered India in the late 2010s, they offered free access to large music catalogues to drive rapid user growth. 

This practice inadvertently popularised the idea that music carries little or no cost. Additionally, the fragmentation of copyright ownership—with rights often divided between labels that own the compositions and artists who hold the master recordings—creates an impression of complexity in licensing, discouraging proactive compliance.

The issue is further compounded by an educational gap across marketing teams, agencies, and small businesses. Many remain unaware that commercial rights are separate from personal listening rights. 

The lack of industry-wide awareness campaigns and inconsistent platform-level enforcement has allowed this misconception to persist. As a result, music licensing remains one of the most neglected aspects of brand content strategy in India.

Creating a compliant ecosystem

There are no shortcuts to compliance, and meaningful reform is required at two levels. First, brands and creators must be educated on the legality of music use, licensing requirements, and the potential consequences of infringement. 

Second, labels and rights holders must evolve their licensing models to better align with today’s digital content ecosystem—making them simpler, more affordable, faster to access, and structured around fair, transparent pricing.

In the digital era, music is no longer merely a creative choice; it has become a legal obligation. As awareness and enforcement around copyright intensify, overlooking licensing will carry increasingly severe costs.

Brands must begin to treat music as intellectual property, embedding compliance into their creative workflows so that innovation and legality coexist seamlessly.

After all, that trending audio might bring visibility today—but without the right licence, it could just as easily bring a lawsuit tomorrow.

ANNEXURE

Here’s a simple, back-of-the-envelope way to see how “~Rs 8,000 crore per year in unpaid royalties” works. It’s broken into big buckets, with stated assumptions and math.

Assumptions (one plausible set)

●    1 crore = 10,000,000 rupees. So Rs 8,000 crore = Rs 80,000,000,000 (Rs 80 billion)

●    Royalty “owed” = usage × typical licence/royalty rate × non-compliance (unpaid %)

●    Numbers below are rounded and conservative where possible

Total unpaid (illustrative): 3,000 + 3,375 + 1,000 + 100 + 60 + 400 + 100 = Rs 8,035 crore (~Rs 80.35 billion)

(Our guest author, Gaurav Dagaonkar, is co-founder & CEO of Hoopr, a platform that offers copyright-free music and sound effects for content creators and brands in India.)