Intellectual Property Law

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 Intellectual Property Law

CONTENTS

INTRODUCTION................................................................................................................................. 3
CONCEPT OF COPYRIGHT SOCIETIES ...................................................................................... 5
LEGAL FRAMEWORK OF COPYRIGHT SOCIETIES IN INDIA ............................................. 8
STATUTORY PROVISIONS PERTAINING TO COPYRIGHT SOCIETIES........................... 10
RECORDS TO BE MAINTAINED BY COPYRIGHT SOCIETIES ............................................ 20
TARIFF SCHEME BY COPYRIGHT SOCIETIES. ...................................................................... 20
DISTRIBUTION SCHEME ............................................................................................................... 21
MEETING OF A COPYRIGHT SOCIETIES. ................................................................................ 22
DOCUMENTS TO BE PRESENTED IN THE ANNUAL GENERAL MEETING OF OWNERS
OF RIGHTS. ....................................................................................................................................... 23
RETURNS TO BE FILED BY THE COPYRIGHT SOCIETIES WITH THE REGISTRAR
OFCOPYRIGHTS. ............................................................................................................................. 23
CODE OF CONDUCT FOR COPYRIGHT SOCIETIES .............................................................. 24
COPYRIGHT SOCIETIES IN INDIA ............................................................................................. 25
CONCLUSION ................................................................................................................................... 26
BIBLIOGRAPHY ............................................................................................................................... 27

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INTRODUCTION

“Copyright” is a form of intellectual property protection granted to the creators of original

works of authorship such as literary works (including computer programmes, tables and
compilations), dramatic, musical and artistic works, cinematographic films and sound
recordings.1 The objective of copyright is to promote the public good by encouraging and
fostering cultural and scientific activity. Copyright protects cultural works, the creative
expression of thoughts and feelings.

Copyright is a right given by the law to creators of literary, dramatic, musical and artistic works
and producers of cinematograph films and sound recordings. It is a bundle of rights including,
inter alia, rights of reproduction, communication to the public, adaptation and translation of the
work. The only criterion to determine whether a person is entitled to copyright protection is
originality in expression.2

The term “copyright” is not defined under the Indian Copyright Act, 1957 (hereinafter referred
to as “Copyright Act”). The general connotation of the term copyright refers to the “right to
copy” which is available only to the author or the creator, as the case may be. Thus, any other
person who copies the original work would be amount to infringement under the Copyright
Act. Copyright ensures certain minimum safeguards of the rights of authors over their
creations. Creativity being the keystone of progress, no civilized society can afford to ignore
the basic requirement of encouraging the same.3 Economic and social development of a society
is dependent on creativity. The protection provided by copyright to the efforts of writers, artists,
designers, dramatists, musicians, architects and producers of sound recordings, cinematograph
films and computer software, creates an atmosphere conducive to creativity, which induces
them to create more and motivates others to create.4

Copyright means the exclusive rights to do or authorize others to do certain acts in relation to:

(1) Original, literary, dramatic, musical and artistic works,

1
COPYRIGHT REGISTRATION: COPYRIGHT LAW & APPLICATION INDIA available at:
http://carajput.com/Assets/Guidence/pdf/COPYRIGHT%20REGISTRATION.pdf (Last visited on 11th October
2017).
2
R.Dhiraj, The Law of Copyright in India, available at: http://www.saprlaw.com/taxblog/copyright_final.pdf
(Last visited on 11th October 2017).
3
Ibid.
4
Ibid.

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(2) Cinematograph film, and

(3) Sound recordings

Basically, a copyright is the right to copy or reproduce the work in which the copyright subsists.
The exclusive right for doing the respective acts extends not only to the whole of the work but
to any substantial part thereof or to any translation or adaptation thereof, where applicable. The
term period of a copyright is the life of the author of the work plus sixty years with certain
exceptions.5

The object of copyright law is to encourage authors, composers, artists and designers to create
original work by rewarding them with an exclusive right for a limited period to exploit the
work for monetary gain. The economic exploitation is done by licensing such exclusive right
to entrepreneurs like publishers, film producers and record manufacturers for a monetary
consideration.

Copyright is a creation of the statute. The law of copyright in India is contained in the Copyright
Act, 1957 as amended subsequently from time to time. This Act has been amended five times
since then, i.e., in 1983, 1984, 1992, 1994, 1999 and 2012. The Copyright (Amendment) Act,
2012 is the most substantial. The Indian copyright legislation provides for three important
authorities and institutions for registration of copyright, effective protection of copyright and
also for better enforcement of the copyright of owners and others. They are:

(1) Copyright office

(2) Copyright Board

(3) Copyright Societies6

5
Working of Copyright Board in India and Procedure for Litigation with Regards to Copyright, available at:
https://www.lawctopus.com/academike/working-copyright-board-india-procedure-litigation-regards-
copyright/ (Last visited on 11th October 2017).
6
Ibid.

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CONCEPT OF COPYRIGHT SOCIETIES

The collective administration of copyright by a society is a concept where management and

protection of copyright in several works are undertaken by the said society of authors and other
owners of such works.7 In India, a copyright society is registered under Section 33 of the
Copyright Act, 1957. Such a society is formed by authors and other copyright owners which
may include licensing entities by virtue of assignment from the original author. The business
of issuing or granting license in respect of literary, dramatic, musical and artistic works
incorporated in cinematograph films or sound recordings shall be carried out only through a
copyright society duly registered under this Act. Ordinarily, only one society is registered to
do business in respect of the same class of work.8

No authors and other owner of copyright in any work can keep track of all the uses others make
of his work. When he becomes a member of a national copyright society, that society, because
of its organisational facilities and strength, is able to keep a better vigil over the uses made of
that work throughout the country and collect due royalties from the users of those works.
Because of the country’s membership in international conventions, the copyright societies are
able to have reciprocal agreements with similar societies in other countries for collecting
royalties for the uses of Indian works in those countries. Therefore, it is in the interests of
copyright owners to join a collective administration organisation to ensure better protection to
the copyright in their works and for reaping optimum economic benefits from their creations.
Users of different types of works also find it easy to obtain licences for legal exploitation of
the works in question, though the collective administrative society.9

The Copyright Society is such a legal entity which safeguards the interests of owners of the
work in which a copyright subsists. 10 Chapter VII of the Copyright Act (Section 33 to 36A)
deals with the Copyright Societies. The Copyright(Amendment) Act, 1994 made the working

7
Legitimacy of IPRS and PPL, available at: http://www.khuranaandkhurana.com/2017/08/26/legitimacy-of-
iprs-and-ppl/ (Last visited on 11th October 2017).
8
Ibid.
9
COPYRIGHT SOCIETIES, available at: http://copyright.gov.in/documents/copyright%20societies.pdf (Last
visited on 11th October 2017).
10
B.L.Wadhera, Law Relating to Patent Trademarks Copyrights, Designs and Geographical Indications,
Universal Law Publishing Co., 3rd ed., 2004, p. 420.

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of Performing Rights Societies wider in respect of rights relating to granting licences for the
performance in India.11

A copyright society is a registered collective administration society under Section 33 of the

Copyright Act, 1957. Such a society is formed by authors and other owners. Such a society is
formed by copyright owners as a group. The minimum membership required for registration
of a society is seven. Ordinarily, only one society is registered to do business in respect of the
same class of work. A copyright society can issue or grant license in respect of any work in
which copyright subsists or in respect of any other right given by the Copyright Act.12

The business of issuing or granting license in respect of literary, dramatic, musical and artistic
works incorporated in a cinematograph films or sound recordings shall be carried out only
through a copyright society duly registered under this Act. This is a kind of compulsory
collective licensing for managing of performing rights.

The registration granted to a copyright society shall be for a period of five years and may be
renewed from time to time before the end of every five years on a request in the prescribed
form and the Central Government may renew the registration after considering the report of
Registrar of Copyrights on the working of the copyright society under section 36.

The renewal of the registration of a copyright society shall be subject to the continued collective
control of the copyright society being shared with the authors of works in their capacity as
owners of copyright or of the right to receive royalty. Every copyright society already
registered before the Copyright (Amendment) Act, 2012 came into existence shall get itself
registered under this Chapter within a period of one year from the date of commencement of
the Copyright (Amendment) Act, 2012.13

The Copyright Society is empowered to do the following acts in furtherance of administration

of copyrights in India14:

i. To issue licenses under section 30, in respect of any rights under this Act;
ii. To collect fees in pursuance of such licences;

11
D.P. Mittal, Law Relating to Copyright, Patents and Trademark and GATT, Taxman Allied Services(P.) Ltd.,
2005, p. 235
12
Supra note 2.
13
COPYRIGHT SOCIETIES, available at: http://copyright.gov.in/documents/copyright%20societies.pdf (Last
visited on 11th October 2017).
14
Copyright Law in India, available at:
http://shodhganga.inflibnet.ac.in/bitstream/10603/61938/11/11_chapter%204.pdf (Last visited on 11th
October 2017).

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iii. To distribute such fees among owners of rights after making deductions for its own
expenses;15
iv. To pay remuneration to individual copyright owners;
v. To submit returns and reports to the Registrar of Copyrights; and
vi. To perform any other functions consistent with the provisions of section 35 of the Act.

Generally, it is necessary to obtain licenses from more than one society. For example, playing
of the sound recording of music may involve obtaining a licence from the IPRS (The Indian
Performing Right Society) for the public performance of the music as well as a licence from
the PPL (Phonographic Performance Limited)16 for playing the records, if these societies have
the particular work in their repertoire.17

15
The distribution of fees collected shall be subject to a deduction not exceeding fifteen per cent of the
collection on account of administrative expenses incurred by the copyright society
16
The Indian Performing Right Society (IPRS) and Phonographic Performance Limited (PPL) were Copyright
societies registered under Section 33 of the Copyright Act, 1957.
17
Supra note 2.

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LEGAL FRAMEWORK OF COPYRIGHT SOCIETIES IN INDIA

There was no provision in the Copyright Act (hereinafter referred as “the Act”) for the
collective administration of copyright by copyright societies before 1994.18 Recognizing the
importance of collective management of copyright, the Indian parliament incorporated the
provision of copyright societies under chapter VII of the Act by the amendment of 1994.19 By
this amendment performing rights societies were replaced by the copyright societies.20 The
working of performing rights societies was limited to granting of the performance rights
whereas copyright societies extends license for all classes of work. 21 Copyright society has
been defined under the Act as a society registered under sub section (3) of section 33 of the
Act.22 Section 33(1) of the Act provides that after the Amendment Act of 1994 the business of
issuing or granting license in respect of all the works in which copyright subsists shall be
carried out only by a Society registered under the Act.23

As per the Act there should be at least seven members to form a copyright society. 24 In India,
it is the Central Government that has the power to register these societies keeping in view the
right of the authors and owners and convenience of the public.25 According to the Act, the
Central Government is generally allowed to establish only one copyright society in respect of
one class of work.26 A copyright society shall be granted registration for a period of five years
which can be renewed from time to time.27

Power of copyright societies relating to the administration of the rights of owners has been
provided under section 34 of the Act. Subject to certain conditions a copyright society may
accept from the owners and authors an exclusive authority to administer any right by way of
issuing license and collection of fee.28 This section also empowers the copyright societies, the
authority to enter into reciprocal agreements with the collecting societies working

18
Divya Subramanium, Legislative Comment Protection Of Performers' Rights - Evolution And Administration
In India, Ent. L.R. 139, 143(2009).
19
V.K AHUJA, LAW RELATING TO INTELLECTUAL PROPERTY RIGHTS 25 (2nd ed., 2015).
20
Supra note 18 at 143.
21
Id.
22
The Copyright Act, 1957, Section 2(ffd)
23
The Copyright Act, 1957, Section 33(1).
24
The Copyright Rules, 2013, Rule 44(1).
25
The Copyright Act, 1957, Section 33(3).
26
The Copyright Act,1957, proviso to Section 33(3)
27
The Copyright Act, 1957, Sec 33(3A)
28
The Copyright Act, 1957, Section 34(1)(a)

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overseas.29For the purpose of carrying out the administration of copyright, a copyright society
is allowed to perform following functions:30

• Issuing of license under section 30 of the Act

• Collection of fee in consideration of such license

• Distribution of royalties collected in the form of license fee to the owner and author of
copyright.

• Any other function in line with other provision of section 35.31

According to the Act, copyright societies in India shall be under the collective control of
authors and other owners of the rights who are its members.32 Before devising any procedure
for the collection and distribution of fee collected from the users, copyright societies are
required to take approval of its members.33 Collecting societies are also bound to provide
detailed information regarding their functionality in the administration of copyright to its
members.34A copyright society is not allowed to discriminate among its members at the time
of payment of royalties. Copyright societies are required to obtain an approval of the authors
and other owners of rights regarding procedure devised for the collection and distribution of
fee and utilization of the revenue collected apart from the payment of royalties.35The royalties
to be distributed by the copyright society among authors and owners shall be in proportion to
the use of their work.36 The Act also provides that all the members of the society will be having
equal status; there can be no discrimination between the members.37

29
The Copyright Act,1957,Section 34(2).
30
The Copyright Act, 1957, Section 34(3).
31
Id.
32
The Copyright Act, 1957, Section 35
33
The Copyright Act, 1957, Section 35(1)(a).
34
The Copyright Act,1957, Section 35(1)(c).
35
The Copyright Act,1957,Section 35(1)(b)
36
The Copyright Act,1957,Section 35(2).
37
The Copyright Act,1957, Section 35(4).

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STATUTORY PROVISIONS PERTAINING TO COPYRIGHT SOCIETIES

Registration of Copyright Society

Section 33 provides:

1. No person or association of persons shall, after coming into force of the Copyright
(Amendment) Act, 1994 commence or, carry on the business of issuing or granting
licences in respect of any work in which copyright subsists on respect or in respect of any
other rights conferred by this Act except under or in accordance with the registration
granted under sub-section (3):
Provided that owner of copyright shall, in his individual capacity, continue to have the
right to grant licences in respect of his own works consistent with his obligations as a
member of the registered copyright society:
Provided further that the performing rights society functioning in accordance with the
provisions of section 33 on the date immediately before the coming into force of the
Copyright (Amendment) Act, 1994 shall be deemed to be a copyright society for the
purposes of this Chapter and every such society shall get itself registered within a period
of one year from the date of commencement of the Copyright (Amendment) Act, 1994.
2. Any association of persons who fulfils such conditions as may be prescribed may apply
for permission to do the business specified in sub-section (1) to the Registrar of Copyrights
who shall submit the application to the Central Government.
3. The Central Government may, having regard to the interests of the authors and other
owners of rights under this Act, the interest and convenience of the public and in particular
of the groups of persons who are most likely to seek licences in respect of the relevant
rights and the ability and professional competence of the applicants, register such
association of persons as a copyright society subject to such conditions as may be
prescribed: Provided that the Central Government shall not ordinarily register more than
one copyright society to do business in respect of the same class of works.
4. The Central Government may, if it is satisfied that a copyright society is being managed
in a manner detrimental to the interests of the owners of rights concerned, cancel the
registration of such society after such inquiry as may be prescribed.

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5. If the Central Government is of the opinion that in the interest of the owners of rights
concerned, it is necessary so to do, it may, by order, suspend the registration of such
society pending inquiry for such period not exceeding one year as may be specified in such
order under sub-section (4) and that Government shall appoint an administrator to
discharge the functions of the copyright society.

As per the Copyright Rules, 1958:

1. Conditions of the submission of applications for registration of Copyright Societies:

Any association of persons whether incorporated or not, consisting of seven or more owners of
copyright (hereinafter referred to as ‘Applicant’) formed for the purpose of carrying of business
of issuing or granting licenses in respect of any class of works which is copyrighted or in
respect of any other work conferred by the Act. In this case they may file with the Registrar of
Copyrights an application of Form II- C. The application then is submitted to the Central
Government for grant of permission to carry on the business and for its registration as a
Copyright Society.

An application under the above provision shall be signed by all the members of the Governing
Body and the Chief Executive of the Applicant.38

2. Conditions for grant of permission to carry on copyright business:

As per Rule 14 of the Copyright Rules, 1958, an applicant of a Copyright Society shall not be
eligible to be considered for such registration unless:

i. After the Applicant is established or it creates a commitment on it to deal with only

copyright business and other activities ancillary thereto and
ii. The Applicant is willing to comply with the provisions of the Act and the rules made
there under.

3. Documents accompanying applications:

38
Copyright Societies, available at : http://www.legalservicesindia.com/article/article/copyright-societies-417-
1.html (Last visited on October 20th 2017).

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Rule 14 A of Copyright Rules, 1958, every application made under rule 12 or rule13 shall be
accompanied with by:

i. A true copy of the application by which the Applicant is established or incorporated.

ii. Consent of all the members included in the application to act as members of the
Governing Body of the Application.

iii. A declaration containing the objectives of the Applicant, the bodies through which it
will function and arrangements for accounting and auditing.

iv. An undertaking to the effect that the instrument is established or incorporated provides
for conforming the same to the provisions of the Act and these Rules.

4. Conditions for registration of a Copyright Society:

According to Rule 14 B of the Copyright Rules, 1958:

i. When an application for registration is submitted to the Central Government

through the Registrar of Copyrights, the Government may, within sixty days from
the date of its receipt by the Registrar of Copyrights either register the Applicant as
a Copyright Society.

ii. The application shall be rejected if the following grounds are present, but only after
giving the Applicant an opportunity to being heard:

a) The Applicant has no professional competence to carry on its business or has not sufficient
funds to manage its affairs; or

b) There exists another Copyright Society registered under the Act for administering the same
class of works and its functioning well; or

c) The Central Government has reason to believe that the members of the Applicant are not
bona fide copyright owners or they have not voluntarily signed the instrument setting up the
Applicant and the application for registration; or

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d) The application is found to be incomplete in any respect, reject the applications.

i. After the registration of the Copyright Society by the Central Government, the Registrar of
the Copyrights shall issue certificate of Registration in Form II- D under his hand and seal.

ii. On and from the date of its registration as specified in the Certificate of Registration, the
Copyright Society shall be entitled to commence and carry on the permitted copyright business
in the name by which it has been so registered.

5. Procedure for holding inquiry:

According to Rule 14 C of the Copyright Rules, 1958:

On the complaint of the Registrar or any of the owners of the rights, has reason to believe that
a Copyright Society is being managed detrimental to the interests of the owners of rights
concerned , it may after making an inquiry in the following manner, cancel or suspend the
registration of the Copyright Society made there under these rules, namely ------The Central
Government by sending a copy of the complaint to the society shall ask for a written statement
of its defence within a specified time.

i. After receiving the written statement, the Central Government if satisfied that a prime
facie case, it shall order an inquiry by appointing an Inquiry Officer.
ii. The Inquiry Officer shall conduct an inquiry based on the principles of natural justice.
iii. He take the assistance of other such as chartered accountant, an audit officer etc.
iv. On the basis of the report of the Inquiry Officer, the Central Government shall take
action and if the complaints are found true, the Government shall cancel the registration
of the Copyright Society.

6. Suspension of Registration:

Under Rule 14 D of the Copyright Rules, 1958, the Central Government may suspend the
registration of the Society and appoint an administrator. According to Rule 14 E administrator
has powers to administer the Copyright Society.

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7. Cancellation of registration:

Rule 14 F of the Copyright Rules, 1958, the registration of the Copyright Society as such may
be cancelled by the Central Government

i. If any of the particulars furnished in the application for registration is found to be

false.
ii. Or if the society is being in a manner detrimental to the interests of the owners of
rights concerned.
iii. Or if it fails to maintain its accounts and get them audited persistently.
iv. Or it utilizes its fund for purposes other than the copyright.

8. Conditions subject to which a Copyright Society may accept authorization and an owner of
rights may withdraw such authorization:

According to Rule 14 G of the Copyright Rules, 1958, a Copyright Society may accept from
an owner of rights or his duly authorized agent, exclusive authorization to administer any right
in a work. If such owner or such agent enters into an agreement, in writing with the Copyright
Society specifying the rights to be administered, the duration for such rights are authorized to
be administered the quantum of fees agreed to and the frequency at which such fees shall be
paid by the Copyright Society in accordance with its scheme of Tariff and Distribution.

The owner of copyright shall be free to withdraw authorization in case the copyright society
fails to fulfill its commitment as laid down in the agreement, but with a prior notice of sixty
days and without prejudice to the rights under the agreement.

9. Conditions, subject to which a Copyright Society may issue licenses, collect fees and
distribute such fees:

According to Rule 14 H of the Copyright Rules, 1958,

A Copyright Society may issue licenses and collect fees only in those works and for the
prescribed period they are authorized to administer in writing by the owners of the rights.
Copyright Society may issue license and collect fees in accordance with its Scheme of Tariff.

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The distribution of fees collected shall be subject to a deduction not exceeding fifteen per cent
of the collection on account of administrative expenses incurred by the Copyright Society.

10. Procedure for obtaining approval of owners of rights for collection and distribution of fees,
etc:

According to Section 14 I of the Copyright Rules, 1958, every Copyright Society shall
maintain the following registers at its Registered or Administrative Office.

i. A register of owners of copyright and other rights to be called the ‘Register of Owners’ in
respect of which the Copyright Society has been authorized by the owners to issue or grant
licenses.

The Register shall contain the:

a) names of the owners,

b) their addresses,
c) the nature of rights authorized to be administered by the Copyright Society,
d) date of publication of the work,
e) the date on which the Copyright Society becomes entitled to and the duration of such
rights.

ii. A Register to be called the “Register of Agreements” containing a copy of every agreement
entered into by the Copyright Society with owners for the purpose.

iii. A Register called “Register of Fees” containing particulars of fees and mentioning the name
of persons or organizations from whom the fees have been realized and the date of realization.

iv. A Register to be called the “Disbursement Register”. It contains the details of

disbursements, made to each owner of copyright, category wise mentioning the name of the
owner, nature of his copyright and the date and disbursement made to him.

11. Tariff Scheme:

As per Rule 14 J of the Copyright Rules, 1958, Copyright Society shall frame a scheme of
tariff to be called the ‘Tariff Scheme’.
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It helps to set out the nature and quantum of fees or royalties which it purposes to collect in
respect of such copyright or other rights administered by it within three months from the date
on which it has become entitled to commence its copyright business.

12. Distribution Scheme:

Rule 14 K of the Copyright Rules, 1958, the Copyright Society shall frame a scheme to be
called the “Distribution Scheme”.

It set outs the procedure for collection and distribution of the fees or royalties specified in the
Tariff Scheme within three months from the date on which Copyright Society has become
entitled to commences its copyright business. Any distribution under the Distribution Scheme
shall, as far as possible, be in the proportion to the income of the Copyright Society from actual
use of the work or works of each owner of rights.

13. Meeting of Copyright Societies:

As per Rule 14 L of Copyright Rules, 1958:

i. After the preparation of the Tariff Scheme and the Distribution Scheme, the
Copyright Society shall call a general meeting of the owners of rights whose names
are recorded in the ‘Register of Owners’ to approve the same.
ii. A notice shall be annexed with a copy of proposed Tariff Scheme and Distribution
Scheme, shall be given to each owners of rights of the meeting, of not less than
twenty- one clear days.
iii. The above notice shall specify that any owner of rights who objects to the Tariff
Scheme or Distribution Scheme shall be entitled to withdraw the authorization
given to the Copyright Society to administer any right in his work.
iv. The Copyright Society shall keep the record of the owners of rights who gave have
given their approval and those who have rejected thereto.
v. Approval by owners of rights for the Schemes shall be by a majority of such owner
present in person.
vi. The quorum for a general meeting shall be one- third of the members.

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The Copyright Society shall not amend an approved Tariff Scheme or Distribution Scheme
except with the consent of the owners obtained at a subsequent general meeting called for the
purpose.

Section 34-A. Payment of remunerations by copyright society-

(1) If the Central Government is of the opinion that a copyright society for a class of work is
generally administering the rights of the owners of rights in such work throughout India,
it shall appoint that society for the purposes of this section.
(2) The copyright society shall, subject to such rules as may be made in this behalf, frame a
scheme for determining the quantum of remuneration payable to individual copyright
owners having regard to the number of copies of the work is circulation:

Provided that such scheme shall restrict payment to the owners of rights whose works have
attained a level of circulation which the copyright society considers reasonable.

Section 35. Control over the copyright society by the owner of rights –

(1) Every copyright society shall be subject to the collective control of the owners of rights
under this Act whose rights it administers (not being owners of rights under this Act
administered by a foreign society or organization referred to in sub section (2) of
Section 34 and shall, in such manner as may be prescribed,-
a. obtain the approval of such owners of rights for its procedure of collection and
distribution of fees.
b. Obtain their approval for the utilization of any amounts collected as fees for any
purposes other than distribution to the owner of rights, and
c. Provide to such owners regular, full and detailed information concerning all its
activities, in relation to the administration of their rights.
(2) All fees distributed among the owners of rights shall, as far as may be, be distributed in
proportion to the actual use of their works.

As per the Rule 14 N of the Copyright Rules, 1958:

Every Copyright Society shall, within a period of twelve months (12 months) from the holding
of the meeting in pursuance of sub-rule (1) of Rule 14 L, hold a general meeting of owners of

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rights, herein called the annual general meeting of owners. However, a special meeting of the
owners of rights may also be held, if considered necessary.

The meetings of owners of rights shall be held in the town or city in which Registered or
Administrative office is situated and the notice calling the meeting shall specify the time, date
and address of the venue of the meeting.

According to Rule 14 O of the Copyright Rules, 1958, every Copyright Society shall place
before its annual general meeting the following documents, namely:

i. An up-to-date list of the owners of rights, their names and addresses as recorded I
Register of owners maintained by the Copyright Society.
ii. Audited accounts of the society for the previous year,
iii. The Tariff Scheme
iv. The Distribution Scheme,
v. A statement approved by its Governing body (by whatever name called) setting out a
full and detailed account of all its activities during the previous year; and
vi. Details of the budget estimates for the succeeding year and a programme of action for
the succeeding year.

Section 36. Submission of returns and reports-

(1) Every copyright society shall submit to the Registrar if Copyright such returns as may
be prescribed.
(2) Any officer duly authorized by the Central Government in this behalf may call for any
report and also call for any record of any copyright society for the purpose of satisfying
himself that the fees collected by the society in respect of rights administered by it are
being utilized or distributed in accordance with the provisions of this Act.

Rule 14 P of the Copyright Rules, 1958: Every Copyright Society shall file a return called the
Annual Return with the Registrar of Copyrights within one month from the conclusion of each
annual general meeting of owners setting out the following details, namely:

i. The date of the annual meeting of the owners held immediately preceding the filing of
the Annual Return, the number of owners attended the meeting in person or by proxy,
and the minutes of such meeting;

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ii. The up- to – date list of the owners of rights , their names and addresses as recorded in
the Register of owners maintained by the Copyright Society;
iii. Audited accounts of the Copyright Society;
iv. The Tariff Scheme;
v. The Distribution Scheme;
vi. A statement approved by its Governing body or Board of Directors setting out a full
and detailed account of all its activities during the year in relation to the rights of the
owners

Section 36A.Rights and liabilities of performing rights societies.-

Nothing in this Chapter shall affect any rights or liabilities in any work in connection with a
performing rights society which had accrued or were incurred on or before the day prior to the
commencement of the Copyright (Amendment) Act, 1994, or any legal proceedings in respect
of any such rights or liabilities pending on that day.

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RECORDS TO BE MAINTAINED BY COPYRIGHT SOCIETIES

Every copyright society shall maintain the following registers at its registered or administrative
office—

(i) a register of authors and other owners to be called the “Register of Authors and Other
Owners” in respect of right or set of rights in the specific categories of works for which the
copyright society has been authorised to issue or grant licences. The register shall contain the
names of the authors and other owners, their addresses, the nature of rights authorised to be
administered by the copyright society, year of publication of the work, the date on which the
copyright society becomes entitled to issue or grant licences and the duration of such
entitlement, the territory for which the authorization has been given and the rights that have
been so authorised;

(ii) a register to be called the “Register of Agreements” containing a copy of every agreement
entered into by the copyright society with the authors and other owners for the purpose;

(iii) a register to be called the “Register of Royalties” containing particulars of royalties and
mentioning the names of persons or organisations and copy of the licence agreements from
whom the royalties have been realised, and the amount so realised including the date of
realisation;

(iv) a register to be called the “Disbursement Register” containing details of disbursement of

royalties made to each author or other owner of right or set of rights in the specific categories
of works, category-wise, mentioning the name of the author or other owner, nature of his right
and the date and amount of disbursement of royalty made to him.

TARIFF SCHEME BY COPYRIGHT SOCIETIES.

Every copyright society shall publish its tariff scheme in such manner as prescribed in the
Copyright Rules, 2013. Any person who is aggrieved by the tariff scheme may appeal to the
Copyright Board and the Board may, if satisfied after holding such inquiry as it may consider
necessary, make such orders as may be required to remove any unreasonable element, anomaly
or inconsistency therein. The aggrieved person shall pay to the copyright society any fee as
may be prescribed that has fallen due before making an appeal to the Copyright Board and shall
continue to pay such fee until the appeal is decided, and the Board shall not issue any order
staying the collection of such fee pending disposal of the appeal. The Copyright Board may
after hearing the parties fix an interim tariff and direct the aggrieved parties to make the
payment accordingly pending disposal of the appeal.

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DISTRIBUTION SCHEME

(1) A copyright society shall frame a scheme to be called the “Distribution Scheme” setting out
the procedure for distribution of royalties specified in the Tariff Scheme among the members
whose names are entered in the Register of Authors and Owners maintained under clause (i) of
rule 59 for the approval of the General Body of the society, as soon as may be, but in no case
later than three months from the date on which a copyright society has become entitled to
commence its copyright business.

(2) The distribution shall, reasonably, be in proportion to the royalty income of the copyright
society derived from the grant of licences for right or set of rights in the specific categories of
works for which it is administering each author and other owners of right.

(3) There shall be no discrimination between authors and other owners of rights in the
distribution of royalties by the copyright society.

(4) While distributing the royalties the copyright society shall inform all members about the
basis on which such amount of royalties are being distributed.

(5) The Distribution Scheme shall aim to ensure that all royalty distributions are fair, accurate,
cost effective and without any unknown or hidden cross-subsidies.

(6) The society shall fix parameters in a transparent manner for determining the share of
distribution of its members and reveal the details of the same in a manner that is easily
understandable to its members.

(7) The distribution of royalties shall be based on actual use or reliable statistical data that fairly
represent the commercial exploitation of the licensed rights.

(8) The Distribution Scheme shall ensure that the royalties to all members are distributed at
least once in a quarter.

(9) The copyright society shall not make any payment in the nature of minimum guarantee to
its members against the share of royalties due to its members.

(10) The royalties collected based on the Tariff Scheme for the licensing of the rights in the
literary or musical works included in a cinematograph film or sound recording shall be shared
on an equal basis with the authors of literary or musical works and the owners of rights in
cinematograph film or sound recording under sub-section (1) of section 18.

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MEETING OF A COPYRIGHT SOCIETIES.

(1) Every copyright society shall hold a General Body meeting of all its members as its annual
General Body meeting before the 31st day of March every year.

(2) A special meeting of the General Body called extra ordinary General Body meeting of all
its members may also be held, if considered necessary, by two thirds majority of the Governing
Council.

(3)The meetings of General Body and Governing Council shall be held in the town or city in
which its registered office is situated or such other convenient place as decided by the Chairman
of the society.

(4) The notice for General Body meeting shall be issued before twenty-one days of the meeting
and it shall and specify the agenda, time, date and address of the venue of the meeting and the
same shall be posted on the website of the society.

(5) Every member of the society shall have equal voting rights in the General Body meetings.

(6) There shall be no discrimination between members who are authors and other owners of
right.

(7) Quorum for meetings of the General Body shall be one third of the total members and in
case of lack of quorum the meeting may be adjourned for thirty minutes and then members
present shall constitute quorum.

(8) Quorum for the meetings of the Governing Council shall be one third of its total members
other than the Chairman with equal number of authors and other owners.

(9)The Registrar of Copyrights shall be invited as an observer to all General Body meetings.
The Registrar or his authorised representative on his behalf may attend the said meeting.

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DOCUMENTS TO BE PRESENTED IN THE ANNUAL GENERAL MEETING OF

OWNERS OF RIGHTS.

Every copyright society shall place before its annual General Body meeting the following
documents, namely:—

(i) an up-to-date list of the authors and other owners of right or the set of rights in the specific
categories of works for which the copyright society has been authorised to issue or grant
licences, their names and addresses as recorded in the Register of Authors and Owners
maintained by the copyright society, as provided in sub-rule (i) of rule 64;
(ii) audited accounts of the society for the previous year;

(iii) the Tariff Scheme and the Distribution Scheme or any other scheme including the decision
of the Copyright Board on the said Schemes, if any;
(iv) annual report as approved by the Governing Council, giving full and detailed account of
all its activities during the previous years;

(v) Budget estimates along with programme of action as approved by the Governing Council
for the succeeding year;

(vi) the agreements, if any entered with foreign copyright societies under subsection (2) section
34 of the Act;
(vii) any changes made in the instrument of registration of the society; and
(viii) any other document relating to the society that require approval of the General Body.

RETURNS TO BE FILED BY THE COPYRIGHT SOCIETIES WITH THE

REGISTRAR OFCOPYRIGHTS.

Every copyright society shall file a return called the Annual Return with the Registrar of
Copyrights within one month from the date of conclusion of each annual General Body meeting
setting out the following details, namely :—

(i) the date of the annual General Body meeting held immediately preceding the filing of the
annual return, the number of members who attended the meeting, agenda and the minutes of
such meeting ;

(ii) the up-to-date list of the members, their names and addresses as recorded in the Register of
Authors and Owners maintained by the copyright society, as provided in rule 64;
(iii) audited accounts of the copyright society;
(iv) the Tariff Scheme, Distribution Scheme and other Schemes, if any;

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(v) annual report approved by the General Body giving full and detailed account of all its
activities during the year;
(vi) the list of the members to whom royalties are not distributed and the reasons for the same;

(vii) the list of the members to whom royalties have been distributed together with the amounts
so distributed.

CODE OF CONDUCT FOR COPYRIGHT SOCIETIES

Every copyright society shall conform to the following Code of Conduct as follows:-(1 )Every
Society shall make available on its website-
(a) certificate of registration as a Copyright Society;

(b) basic documents of governance such as memorandum of association, articles of association,

constitution or charter;
(c) list of all members of General Body;

(d) names and address of Chairman, other members of the Governing Council and other officers
of the society;

(e) right or set of rights in the specific categories of works for which the copyright society has
been authorised to issue or grant licences;
(f) all schemes of the society;
(g) annual report and audited accounts as approved by the General Body;
(h) licence agreement formats;
(i) details of all existing licences other than those clauses in the licence having commercial
sensitivity;

(j) foreign societies with whom there are agreements to collect royalties and the details of the
agreement other than those clauses having commercial sensitivity;
(k) details of the complaint or Grievances Cell; and
(I) the code of conduct.
(2)The members shall be-

(a) treated fairly, honestly, impartially, courteously, and ensure that its dealings with them are
more transparent;

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COPYRIGHT SOCIETIES IN INDIA

In the Indian market, for collective administration of copyright in musical works, there are
three players IPRS, PPL and ISRA. The Indian Performing Rights Society (hereinafter “IPRS”)
collects royalties on behalf of the composers and lyricists.39 Whenever there is a live
performance of the work of its members, IPRS has right to claim royalty. 40 Another society is
Phonographic Performance Limited. (hereinafter “PPL”) which collects royalties for sound
recording.41 Third and the most recently established society is the Indian Singers Right
Association (hereinafter “ISRA”)42 ISRA collects royalties on behalf of singers and it the only
society which is registered under the Act.43

However, IPRS and PPL are no more copyright societies as they failed to get themselves
registered after the 2012 Amendment which mandated every copyright society to get itself re-
registered under the Act within one year of the Amendment.

39
The Indian Performing Right Society Limited, THE INDIAN PERFORMING RIGHT SOCIETY
LIMITEDhttp://www.iprs.org/cms/Home.aspx (last visited on October 16, 2017)
40
Id.
41
License Categories, PHONOGRAPHIC PERFORMANCE LTD., http://www.pplindia.org/licctg.aspx (last visted
on October 16, 2017)
42
About ISRA, ISRA COPYRIGHT, http://isracopyright.com/about_isra.php (last visited on October 16, 2017).
43
Indian Singers Right Association, INDIAN SINGERS RIGHT ASSOCIATION
http://isracopyright.com/certificate_of_registration.php (last visited on October 16, 2017).

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CONCLUSION

There are copyright societies in different countries. The aim of the Copyright Societies is to
collect the royalty and to take appropriate actions against any infringement in various
copyrighted works.

Thus different Copyright Societies helps the copyright owners to make association with foreign
countries.

Thus the Copyright Societies play an important role in order to make the Copyright owners to
associate with business people easily and to earn money.

Copyright societies in India have been accorded a monopoly status by the Indian copyright
Act. Copyright Societies are important institutions that bridge the gap between the copyright
holders and users of the works protected by copyright. Initially copyright societies came into
existence as not-for-profit organizations but with the growth of business, they took shape of
big business house that are interested only in profit-making and not copyright management.
Moreover these societies are acting in violation of the copyright Act. Time and again it has
been complained by the users and copyright holders that these societies are abusing their
dominant position which is harming the competition in the market. The 2012 Amendment
introduced many safeguards in the interest of copyright holders but due to lack of proper
implementation machinery they have not been of much use.

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BIBLIOGRAPHY

LEGAL FRAMEWORK OF COPYRIGHT SOCIETIES AND COMPETITION LAW IN INDIA - Sunaina Mishra &
Deepankar Mishra INDIAN COMPETITION LAW REVIEW [APRIL 2017] [Vol. II]

https://www.lawctopus.com/academike/working-copyright-board-india-procedure-litigation-
regards-copyright/

http://shodhganga.inflibnet.ac.in/bitstream/10603/61938/11/11_chapter%204.pdf

http://www.saprlaw.com/taxblog/copyright_final.pdf

http://carajput.com/Assets/Guidence/pdf/COPYRIGHT%20REGISTRATION.pdf

http://copyright.gov.in/documents/copyrightrules1957.pdf

http://www.tigurl.org/images/resources/tool/docs/1611.pdf

http://www.accu.or.jp/appreb/10copyr/pdf_ws0810/c2_02.pdf

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