Tuesday, February 24, 2026

Music Copyright in Nepal - Royalties, Licensing, and Common Disputes Explained

For musicians, producers, record labels, and media companies in Nepal, music is not only creative expression but also a valuable commercial asset. Songs are streamed, broadcast, performed in public venues, and used in advertisements, films, and digital platforms. Each of these uses generates potential revenue through licensing and royalties.

However, many Nepali artists and businesses still face confusion about who owns music rights, how royalties are collected, and what legal protections exist when disputes arise.

Understanding the legal framework of music copyright in Nepal is essential for artists seeking fair compensation and for businesses using music lawfully.




Legal Framework Governing Music Copyright in Nepal

Music copyright in Nepal is governed primarily by the Copyright Act, 2059 (2002) and the Copyright Rules, 2061. The Act is administered by the Office of the Registrar of Copyright under the Ministry of Culture, Tourism and Civil Aviation.

Nepal is also a member of the World Intellectual Property Organization (WIPO), aligning its copyright principles with international intellectual property standards.

Under Nepali law, copyright arises automatically once an original musical work is created and recorded in tangible form. Registration is not mandatory but can strengthen evidence of ownership. For procedural details, see Copyright Registration Process in Nepal: Step-by-Step + Required Documents.

What Rights Are Protected in Music?

Music copyright protects several components of a musical work.

1. Musical Composition

This includes the melody, harmony, and structure of the song. The composer usually holds this right.

2. Lyrics

The written words of a song are protected as a literary work. The lyricist holds copyright over the lyrics.

3. Sound Recording

The recorded version of a song is protected separately. This right usually belongs to the producer or recording label.

4. Performance Rights

When a song is performed publicly, the performer may hold certain rights related to the performance.

These different rights often belong to different individuals or entities, which makes licensing arrangements complex.


How Royalties Work in Nepal

Royalties are payments made to copyright owners when their music is used commercially.

In Nepal, royalties may arise from several sources:

  • Radio broadcasting

  • Television broadcasting

  • Live performances

  • Streaming platforms

  • Public venues such as hotels, restaurants, and events

  • Advertising or film use

When a song is used commercially, the user must obtain permission from the copyright holder or licensing authority.

Without permission, the use may constitute copyright infringement.


Types of Music Licensing

Music licensing determines how a song may be used. Different types of licenses apply depending on the use.

Public Performance License

Required when music is played in public places such as:

  • Restaurants

  • Hotels

  • Concert venues

  • Retail stores

Synchronization License

Required when music is used in visual media such as:

  • Films

  • Television programs

  • Advertisements

  • Online video content

Mechanical License

Applies when music is reproduced in physical or digital formats such as CDs or digital downloads.

Streaming or Digital License

Platforms that stream music must obtain licensing rights to distribute and monetize songs.

Licensing agreements define the scope of use, duration, and royalty payment structure.


Common Music Copyright Disputes in Nepal

Music copyright disputes frequently arise due to unclear ownership or unauthorized use.

Unauthorized Public Performance

Restaurants, event organizers, or venues may play copyrighted music without obtaining licenses.

Ownership Disputes

Conflicts may arise between composers, lyricists, producers, and record labels regarding who owns the rights.

Unauthorized Online Distribution

Songs may be uploaded or distributed online without the consent of the copyright holder.

Royalty Payment Disputes

Artists may not receive proper royalty payments due to unclear agreements or lack of monitoring.

Such disputes can significantly affect both artists and businesses using music commercially.


Enforcement Options Under Nepali Law

If copyright infringement occurs, the rights holder may take several legal steps.

Possible remedies include:

  • Issuing a legal notice demanding removal or compensation

  • Filing a civil claim for damages

  • Seeking injunction orders to stop unauthorized use

Having documented proof of ownership strengthens enforcement actions.


Importance of Written Agreements in Music Industry

Many disputes arise because artists collaborate without written agreements.

Music projects should clearly define:

  • Ownership of composition

  • Ownership of sound recording

  • Royalty sharing structure

  • Licensing rights

  • Duration and territorial scope

Clear contracts prevent conflicts among collaborators and ensure proper revenue distribution.


Practical Advice for Musicians and Businesses

  1. Clearly document authorship and contributions during music production.

  2. Use written agreements for collaborations, recording projects, and licensing deals.

  3. Register high-value musical works to strengthen evidence of ownership.

  4. Monitor online platforms for unauthorized use of music.

  5. Businesses using music commercially should obtain proper licenses before public use.

  6. Maintain royalty tracking and contractual clarity with producers and labels.

Legal guidance is often necessary to structure licensing arrangements correctly.

Axcel Law advises musicians, producers, creative agencies, and media companies in Nepal on copyright registration, licensing agreements, and dispute resolution. Professional legal oversight ensures compliance with Nepal’s copyright framework while protecting commercial rights.


Conclusion

Music copyright in Nepal protects the creative and economic interests of composers, lyricists, performers, and producers. While protection arises automatically under the law, proper licensing, royalty management, and contractual clarity are essential for preventing disputes.

For musicians, copyright ensures recognition and financial compensation. For businesses, compliance with licensing requirements avoids legal liability and supports ethical use of creative work.

As Nepal’s music industry continues to expand across digital platforms and commercial media, understanding copyright, royalties, and licensing structures has become increasingly important for sustainable growth and legal compliance.

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