Phonographic Performance Company of Australia Limited & Ors v Commonwealth of Australia

The Phonographic Performance Company of Australia Limited (PPCA) and other applicants brought proceedings against the Commonwealth of Australia. The dispute concerned the validity of certain provisions of the *Copyright Amendment Act 2006* (Cth) and the *Copyright Amendment Regulations 2006* (Cth) (collectively, the Amending Legislation). The applicants contended that these provisions, which introduced a statutory licence for the broadcast of sound recordings, were invalid. The matter was heard by the High Court of Australia.

The central legal issue before the High Court was whether the Amending Legislation, by imposing a statutory licence for the broadcast of sound recordings, contravened section 92 of the *Constitution*. Section 92 guarantees that trade, commerce, and intercourse among the States shall be absolutely free. The applicants argued that the statutory licence, by permitting the broadcast of sound recordings without the consent of the copyright owner, constituted an impermissible burden on the freedom of interstate trade and commerce.

The High Court, by majority, held that the Amending Legislation did not contravene section 92 of the *Constitution*. The majority reasoned that the statutory licence did not impose a burden on interstate trade or commerce. Instead, it regulated the terms upon which copyright in sound recordings could be used for broadcasting, a matter within the legislative power of the Commonwealth under section 51(xviii) of the *Constitution*. The Court distinguished between laws that impose a burden on interstate trade and those that merely regulate activities that may have an interstate dimension. The statutory licence was found to be a regulatory measure that did not discriminate against or impede interstate commerce.

The applications were dismissed.