Rs 900 cr in lost royalties: The hidden cost of unlicensed reel audio in branded content

32,000 branded videos are uploaded every single day on social media, and 87% of them feature unlicensed music, according to India’s first AI-powered music licensing platform Hoopr. This rising misuse is now one of the biggest legal and financial risks facing creators, brands and agencies in India.

Gaurav Dagaonkar, Co-Founder and CEO of Hoopr, shared that the problem can no longer be dismissed as a technical oversight. “The misuse of copyrighted music in branded content is no longer a minor issue. It is now one of the biggest risks for marketers and creators. It leads to compliance lapses that result in copyright strikes, takedowns and even lawsuits,” he said. 

A recent example is the Sony Music vs Myntra case. Sony has sued Myntra for Rs 5 crore in damages in April, accusing the platform of using copyrighted music in promotional material without permission. Myntra’s legal team agreed to remove all infringing content within 24 hours and to stop using Sony Music’s sound recordings until the court decides on the interim application.

Read On: Copyright vs Creativity: Is lack of clarity in fair use laws a challenge for creators?

While Instagram was not named in the court order, such disputes often connect with social media platforms where content is distributed. Meta’s own policy does not allow the use of its in-app music library for branded or promotional content. 

The Indian music industry is estimated to lose Rs 8,000–10,000 crore annually to copyright violations, with artists missing out on over Rs 900 crore in royalties. What may seem like a harmless reel today could quickly spiral into a reputational and financial crisis tomorrow. It’s time brands and creators treat music licensing not as an afterthought – but as a core pillar of ethical and sustainable content creation.

Many creators mistakenly believe that if a song appears in Instagram’s music library, it’s free to use for all types of content – including brand collaborations. However, that’s a serious misconception. Meta’s music usage policy clearly specifies that tracks available in its library are licensed only for personal and non-commercial use.

“Using them in branded content, paid partnerships, or promotional videos constitutes a copyright violation, which can lead to muted audio, video takedowns, reduced reach, or even legal consequences. Unfortunately, these guidelines remain poorly understood across the creator ecosystem. As a result, many creators continue to use “trending tracks” to capitalize on their 25–35% engagement boost, often unaware of the copyright risks and potential penalties involved,” Dagaonkar explained.

The Kunal Kamra vs T-Series dispute is another recent example of how aggressively labels are enforcing their rights. Kamra’s stand-up special Naya Bharat was flagged on YouTube for using parodied versions of “Hawa Hawai” and “Bholi Si Surat”. T-Series blocked the content, saying Kamra had used their compositions without authorization.

Read On: Kunal Kamra vs T-Series: Copyright dispute & political satire

According to a YouTube notice shared by Kamra on X (formerly Twitter), the video was blocked due to copyright restrictions, preventing it from generating revenue.

In response, Kamra took to social media to criticize T-Series for the copyright claim. “Hello T-Series, stop being a stooge. Parody and satire come under fair use legally. I haven’t used the lyrics or the original instrumental of the song. If you take this video down, every cover song/dance video can be taken down. Creators, please take note of it.”

Hello @TSeries, stop being a stooge.

Parody & Satire comes under fair use Legally.

I haven’t used the lyrics or the original instrumental of the song.

If you take this video down every cover song/dance video can be taken down.
Creators please take a note of it.

Having said… pic.twitter.com/Q8HXl1UhMy

— Kunal Kamra (@kunalkamra88) March 26, 2025

T-Series defended its actions, asserting that Kamra had used their musical compositions without authorization. A spokesperson for the company told PTI: "Mr. Kunal Kamra has not taken any authorization or approval for the usage of the underlying musical work in the song. Hence, the content has been blocked for infringement of composition rights."

Similar cases are increasing across platforms. Meta reported that more than 12 million Reels in India were muted or removed in 2024 due to copyright violations. The impact on influencer marketing has been significant. Posts are getting taken down, paid boosts are being rejected and campaign schedules are being disrupted. Agencies now routinely ask creators to provide proof of licensed music before approving any branded post.

Read On: Hoopr launches music licensing plans for brands, digital platforms, production houses

How Creators Can Stay Safe Without Losing Creativity

Experts say creators and brands can protect themselves with a few simple steps:

(1) Use licensed music from platforms such as Hoopr that provide Bollywood and regional tracks cleared for commercial use.

(2) Keep personal content and paid content separate. Instagram’s in-app music library cannot be used in brand collaborations.

(3) Include music licensing in campaign budgets just like fees or production expenses, especially given the volume of branded content being produced daily.

(4) Choose music based on theme or tone instead of chasing trends. Fashion, travel or food content can each take advantage of different licensed soundscapes.

(5) Maintain a basic compliance checklist, store license receipts, avoid remixes or altered versions and follow usage limits to avoid violations.

These steps may seem small, but ignoring them leaves creators exposed to legal claims and sudden takedowns. 

Industry leaders believe the future of influencer marketing will rely on ethical creativity supported by AI tools and licensed catalogues. Random trending tracks will slowly be replaced by carefully selected music that fits the brand story and meets compliance standards. This shift will bring tools such as Brand Match Score, which helps brands select the right song based on mood and tone, and an AI content idea generator that builds campaign concepts around licensed audio.

With 32,000 branded videos being produced every day, licensed and contextually relevant music will help content stand out while protecting reach, recall and brand reputation.