Compulsory licence breach and copyright infringement prevented continued broadcasting on deposit after termination.

A compulsory copyright licence was held terminable where the licensee failed to furnish and periodically revise the bank guarantee tied to quarterly compensation liability, and any alleged informal understanding could not override the express licence terms. On that basis, continued broadcasting after termination would amount prima facie to copyright infringement, and the court declined to allow use of the repertoire merely on a monetary deposit because that would effectively create an interim compulsory licence. Protection of the copyright holder's rights prevailed, while the licensee was left to pursue remedies under the statutory framework separately.

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Issues: (i) whether the compulsory licence granted to the defendant was breached and validly terminated for failure to revise the bank guarantee; (ii) whether the defendant could be permitted to continue broadcasting sound recordings from the plaintiff's repertoire on deposit of money.

Issue (i): whether the compulsory licence granted to the defendant was breached and validly terminated for failure to revise the bank guarantee.

Analysis: The licence required the defendant to furnish and periodically revise the bank guarantee in accordance with quarterly compensation liability. The record showed that the revised guarantee was never furnished and no payment was made for a substantial period. Any alleged understanding permitting unilateral adjustment was unsupported by material and could not override the express licence terms. In these circumstances, the plaintiff was entitled to terminate the licence for breach.

Conclusion: The breach and termination were upheld, in favour of the respondent.

Issue (ii): whether the defendant could be permitted to continue broadcasting sound recordings from the plaintiff's repertoire on deposit of money.

Analysis: Once the compulsory licence stood terminated, continued broadcasting would amount prima facie to infringement of copyright. The earlier order, though correctly finding breach, could not justify continued use of the repertoire on payment of a lump sum, as that would in substance grant an interim compulsory licence. The balance of convenience and prima facie case favoured protection of the plaintiff's copyright, while the defendant could pursue any remedies available under the statutory framework separately.

Conclusion: The permission to continue broadcasting on deposit was set aside, in favour of the respondent.

Final Conclusion: The appeal failed, the cross-objections succeeded, and ad-interim injunctive relief was restored while leaving the final motion to be decided on its own merits.

Ratio Decidendi: A compulsory licence terminable for breach cannot be continued by judicial order on a monetary deposit once the licensee has failed to comply with its essential conditions, because that would amount to granting an interim licence and would permit prima facie infringement of copyright.

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