In order to ensure smooth and flawless compliance of Copyright Act in the light of technological advancement in digital era and to bring them in parity with other relevant legislations, the Department for Promotion of Industry and Internal Trade, Government of India has now proposed to introduce the Copyright Amendment Rules, 2019.

The draft rules are available on http://egazette.nic.in/WriteReadData/2019/204924.pdf  for seeking comments and suggestion from all persons likely to be affected thereby upto 29^th June 2019.

The copyright regime is governed by the Copyright Act, 1957 and the Copyright Rules,2013. The Copyright Rules,2013 were last amended in 2016 through the Copyright Amendment Rules, 2016.

MINISTRY OF COMMERCE AND INDUSTRY

(Department for Promotion of Industry and Internal Trade)

NOTIFICATION

New Delhi, the 30th May, 2019

G.S.R. 393(E).-The following draft of certain rules to amend Copyright Rules, 2013 referred as the principal rules, which the Central Government proposes to do in exercise the powers conferred by section 78 of the Copyright Act, 1957, is hereby published, as required by sub-section (3) of the said section, for the information of all persons likely to be affected thereby; and notice is hereby given that the said draft will be taken into consideration after the expiry of a period of thirty days from the date on which the Gazette of India, in which this notification is published, are made available to the public;

Objections or suggestion, if any, may be sent to the Joint Secretary to the Government of India, Ministry of Commerce and Industry, Department for Promotion of Industry and Internal Trade, Udyog Bhawan, Rafi Marg, New Delhi 110011 or copy can be mailed at [email protected] .

Any objections or suggestions received from any person will respect to the said draft rules before the expiry of the aforesaid period will be considered by the Central Government.

Draft Rules

1. (1) These rules may be called the Copyright (Amendment) Rules, 2019;

2. In the Copyright Rules, 2013 (herein after referred to as the principal rules),-

(i) In clause (b) of sub-rule (1) of rule 2, for the words “a Copyright Board as defined in sub-section (1) of ” shall be substituted by the words “the Appellate as provided in”;

3. In the principal rules, in Chapter II, for the title words “THE COPYRIGHT BOARD” shall be substituted by the words “THE APPELLATE BOARD”.

4. In the principal rules, for the existing rule 3, the following rule shall be substituted, namely-

“3. Appellate Board –

(1) The Chairman and other members of the Board shall be appointed as per the provisions of the Trade Marks Act, 1999;

Provided that the Technical Member of the Board for the purposes of the Act shall have the qualifications as specified in sub-rule (2).

(2) A person shall not be qualified for appointment as a Technical Member for the purposes of this Act unless he-

(a) is or has been a member of the Indian Legal Service and has held a post in Grade I of that Service for atleast three years; or

(b) has, for at least ten years, held a judicial office; or

(c) is or has been a Member of a Tribunal or Civil Service not below the rank of a Joint Secretary to Government of India or equivalent with three years’ experience in the field of Copyright; or

(d) has, for atleast ten years, been an advocate of a proven specialized experience in Copyright Law.

Provided that atleast one member out of the two shall have the qualification as prescribed under clause (a), (b) or (d).”

5. (i)In the principal rules, in sub-rule (1) of rule 7, before the words “by registered post”, the words “through electronic means or” shall be inserted;

(ii) In the principal rules, in sub-rule (5) of rule 7, for the words “notified in the Official Gazette and”, the word “published” shall be substituted.

6. (i) In the principal rules, in sub-rule (4) of rule 11, for the words “Register of Copyright”, the words “Registrar of Copyrights” shall be substituted;

(ii) In the principal rules, in sub-rule (6) of rule 11, for the words “notified in the Official Gazette and”, the word “published” shall be substituted;

7. In the principal rules, in rule 16, for the words “if decides to make a request”, the words “as required” shall be substituted;

8. (i) In the principal rules, in sub-rule (1) of rule 18, before the words “by registered post”, the words “through electronic means or” shall be inserted;

(ii) In the principal rules, in sub-rule (5) of rule 18, for the words “notified in the Official Gazette and”, the word “published on” shall be substituted.

9. In the principal rules, in rule 19, wherever the words “Copyright Board” appears, the word “Board” shall be substituted.

10. In the principal rules, in second proviso of sub-rule (1) of rule 23, for the words “in the Official Gazette and”, shall be omitted.

11. In the principal rules, in sub-rule (2) of rule 27, the words “in the Official Gazette and the same to be republished” shall be omitted.

12. (i) In the principal rules, in third proviso of sub-rule (1) of rule 29, for the words “in the Official Gazette and”, shall be omitted;

(ii) In the principal rules, in sub-rule (3) of rule 29, for the words “by way of radio broadcast or television broadcast”, the words “for each mode of broadcast” shall be substituted;

(iii) In the principal rules, in clause (b), (c) and (g) of sub-rule (4) of rule 29, wherever the words “by way of radio broadcast, television broadcast”, the words “for each mode of broadcast” shall be substituted;

(iv) In the principal rules, in clause (h) of sub-rule (4) of rule 29, the words “, i.e. radio, television or performance” shall be omitted.

13. In the principal rules, in sub-rule (1) of rule 30, for the words “radio broadcasting and television broadcasting”, the words “each mode of broadcast” shall be substituted.

14. (i) In the principal rules, in sub-rule (1) of rule 31, the words “immediately after its constitution” shall be omitted;

(ii) In the principal rules, in sub-rule (1) of rule 31, wherever the words “radio and television broadcasting”, the words “each mode of broadcast” shall be substituted;

(iii) In the principal rules, in sub rule (2) of rule 31, the words “in the Official Gazette and shall be re-published” shall be omitted;

(iv) In the principal rules, in sub-rule (3) of rule 31, for the words “public notice”, the words “such notice” shall be substituted;

(v) In the principal rules, in sub-rule (3) of rule 31, for the word “formats”, the words “modes of communication to public” shall be substituted;

(vi) In the principal rules, in sub-rule (5) of rule 31, for the words “radio and television broadcasting respectively”, the words “each mode of broadcast” shall be substituted;

(vii) In the principal rules, in sub-rule (6) of rule 31, for the words “radio and television broadcast”, the words “each mode of broadcast” shall be substituted;

(viii) In the principal rules, in clause (e) of sub-rule (7) of rule 31, for the words

“(e) the terms and conditions included in the Grant of Permission Agreement (GOPA) between Ministry of Information and Broadcasting and the broadcaster for Operating Frequency Modulation (FM) Radio Broadcasting Service; and”

the following words shall be substituted, namely-

“(e) the terms and conditions specified in grant of permission by the relevant authority; and”.

15. In the principal rules, in sub-rule (1) of rule 33, for the words “in the Official Gazette”, the words “on its website” shall be substituted.

16. (i) In the principal rules, in sub-rule (1) of rule 34, for the words “in the Official Gazette” , the words “on its website” shall be substituted;

(ii) In the principal rules, in sub-rule (3) of rule 34, for the words “after the publication in the Official Gazette of the notice”, the words “of receipt of such notice” shall be substituted;

(iii)In the principal rules, in sub-rule (6) of rule 34, the word “in the Official Gazette and” shall be omitted.

17. (i) In the principal rules, in sub-rule (1) of rule 39, before the words “by registered post”, the words “through electronic means or” shall be inserted;

(ii)In the principal rules, in sub-rule (5) of rule 39, the word “notified in the Official Gazette and be”, shall be omitted.

18. In the principal rules, in sub-rule (1) of rule 49, the words “, within a period of sixty days from the date of its receipt by the Registrar of Copyrights” shall be omitted.

19. (i) In the principal rules, in clause (a) of sub-rule (2) of rule 50, the words “not below the rank of Deputy Secretary to the Government of India” shall be omitted;

(ii) In the principal rules, sub-rule (3) of rule 50 shall be omitted.

20. In the principal rules, in sub-rule (2) of rule 55, for the words “rule 71” the words “rule 67” shall be substituted.

21. (i) In the principal rules, in sub-rule (1) of rule 56, after the word “frame” the words “and publish” shall be inserted;

(ii) In the principal rules, in sub-rule (4) of rule 56, the words “and may” shall be omitted;

(iii) In the principal rules, in sub-rule (4) of rule 56, after the words “consult the user groups” the following words shall be inserted –

“and may also consider:

(a) cross-sectional tariff comparisons;

(b) economic research;

(c) the nature and scope of the use of the work;

(d) the commercial value of the rights in use;

(e) the benefits to licensees;”

22. (i) In the principal rules, sub-rule (3) & (4) of rule 57 shall be deleted;

(ii)In the principal rules, for the clauses (a) & (b) of sub-rule (5) of rule 57, namely:

“(a) the prevailing standards of royalties in regard to such commercial exploitation of works; and

(b) such other matters as may be considered relevant by the Board.”

The following clauses shall be substituted, namely:

“(a) class of works;

(b) nature of use of work;

(c) modes of communication to public.

(d) prevailing standards of royalties with regard to such works;

(f) commercial value of the rights in use;

(g)benefits to licensees;

(h) such other matters as may be considered relevant by the Board.”

23. In the principal rules, after sub-rule (10) of rule 58, the following sub-rules shall be inserted –

“(11) A copyright society must ensure that where the royalty cannot be distributed within the time specified in sub-rule (8) as the relevant author or other owner could not be identified or located, such royalties are kept separate in the accounts of the copyright society;

(12) A copyright society must take all necessary measures to identify and locate the authors and other owners and must publish on its website, at the end of every quarter, the following information:

(a) the title of the work;

(b) the name of the author and other right owners of the work, as available; and

(c) any other relevant information available which could assist in identifying the right holder.

(13) In case the royalty due to author and other owners remains undistributed at the end of the period of three years from the end of the financial year in which collection of the royalty occurred, the copyright society shall refund such amount to the licensee within a period of three months from the end of such financial year;

Nothing in this sub-rule shall prejudice the right of an author and other owner to claim such amounts from the copyright society or the licensee, as the case may be, in accordance with the limitation period applicable to such civil proceedings.”

24. In the principal rules, the sub-rule (7) of rule 59, shall be substituted, namely: -

“(7) The Chairman and other members, of the Governing Council shall be elected for a term of two years and shall be eligible for re-election.”

25. In the principal rules, for the existing sub-rule (5) of rule 61, the following sub-rule shall be substituted, namely-

“(5) Every member of the society shall have the right to participate in and to exercise voting rights at the General Body Meeting in a manner determined and applied in a fair and proportionate manner on the basis of one or more of the following criteria:

(a) number of works and rights or set of rights authorized by the owner;

(b) duration of the membership;

(c) amounts received or due to a member.”

26. In the principal rules, after clause (viii) of rule 62, the following new clause shall be inserted–

“(ix) The annual transparency report as provided under Rule 65A.”

27. In the principal rules, in rule 64, after the words “maintain the following registers” the words “in physical or digital format,” shall be inserted.

28. In the principal rules, after clause (vii) of rule 65, the following new clause shall be inserted, namely–

“(viii) The annual transparency report as provided under Rule 65A.”

29. In the principal rules, after rule 65, the following new rule shall be inserted, namely –

65A. Annual transparency report -(1) The copyright society must draw up and make public a special report to be referred to as the annual transparency report for each financial year within six months following the end of that financial year. The copyright society shall publish on its website the annual transparency report and ensure that the annual transparency report remains available on its website for at least three years.

(2) The annual transparency report must contain the following information-

(a) report on the activities in the financial year;

(b) information on refusals to grant a licence;

(c) a description of the legal and governance structure of the copyright society;

(d) the details and use of the amounts deducted for the activities conducted under the Welfare Scheme as provided under Rule 67;

(e) financial information on rights revenue for each category of rights administered and for each type of use (for example broadcast, public performance, etc.), including information on-

(i) the income arising from the investment of rights revenue, if any;

(ii) use of such income (whether it is distributed to right holders or otherwise used);

(iii) financial information on the cost of rights administration and other services provided by the copyright society to its members, and

(iv) deductions made from royalty collected with a breakdown for each category of rights administered and the purpose of the deduction;

(f) financial information on royalties due to the author and other owners with a description of the following-

(i) the total royalties attributed to author and other owners with a breakdown for each category of rights administered and type of use;

(ii) the total royalties paid to author and other owners, with a breakdown for each category of rights administered and type of use;

(iii) the frequency of payments with a breakdown for each category of rights administered and type of use;

(iv) the total royalties collected but not yet attributed to author and other owners with a breakdown for each category of rights administered and type of use and indicating the financial year in which those amounts were collected;

(v) the total royalties attributed to, but not yet distributed to, author and other owners with a breakdown for each category of rights administered and type of use and indicating the financial year in which those amounts were collected;

(vi) where a copyright society has not carried out the distribution and payments within the period provided for under sub-rule (8) of Rule 58, the reason for the delay; and

(vii) the details of the royalty paid to the unidentified authors and other owners and undistributed royalties, if any; and;

(g) information on relationships with the foreign societies or organisation, with a description of the following-

(i) amounts received from and paid to the foreign societies or organisation with a breakdown for each category of rights, for each type of use and for each organisation;

(ii) administration fees and other deductions from the rights revenue due to the foreign societies or organisation with a breakdown for each category of rights, for each type of use and for each organisation;

(iii) administrative fees and other deductions from the amounts paid by foreign societies or organisation with a breakdown for each category of rights and for each organisation.”

30. In the principal rules, after clause (l) of sub-rule (1) of rule 66, the following new clause shall be inserted, namely–

“(m) the facility to search from the database of works forming part of the repertoire of the copyright society.

(n) the annual transparency report as approved by the General Body.

(o) the details of the undistributed royalties on account of the work belonging to authors and other owners who could not be identified or located.”

31. In the principal rules, Explanation 3 under sub-rule (4) of rule 68 shall be omitted.

32. (i)In the principal rules, in sub-rule (1) of rule 69, for the words “physical and electronic”, the words “physical or electronic” shall be substituted;

(ii) In the principal rules, in Part VI of sub-rule (1) of rule 69, the words “, tables and compilations including computer databases” shall be omitted.

33. In the principal rules, in sub-rule (5) of rule 70, for the words “the source and object code” , the words “at least first 10 and last 10 pages of source code, or the entire source code if less than 20 pages, with no blocked out or redacted portions”, shall be substituted.

34. (i) In the principal rules, in sub-rule (1) of rule 72, for the word “both in physical and electronic”, the word “in physical or electronic” shall be substituted;

(ii) In the principal rules, sub-rule (2) of rule 72, namely-

“Every Index shall be arranged alphabetically in the form of cards.” shall be omitted.

35. (i) In the principal rules, in sub-rule (1) of rule 79, for the words “Central Board of Excise and Customs in accordance in Form-XVI and shall be accompanied by fee as specified in the Second Schedule”, the words “Commissioner, and the subsequent procedure thereafter shall be in accordance with the Intellectual Property Rights (Imported Goods) Enforcement Rules, prescribed under the Customs Act,1962 (52 of 1962)”;

(ii) In the principal rules, sub-rules (2), (3), (4) & (5) of rule 79 shall be omitted.

36. In the principal rules, rule 82 shall be substituted with the following rule, namely-

“82. Mode of Communication by the Copyright Office, etc.- Every written intimation from the Board, the Copyright Office or the Registrar of Copyrights shall be deemed to have been duly communicated to any person if such intimation is sent to the known address of such person through electronic means or by registered post”.

37. (i) In the principal rules, rule 83 shall be substituted with the following rule, namely-

“83. Fees- (1) The fees to be paid in respect of applications or any other matters under the Act and the rules shall be those as specified in the Second Schedule.

(2) Where in respect of any matter, a fee is required to be paid under the rules, the form or the application or the request of the petition thereof, it shall be accompanied by the prescribed fee.

(3)Fees may be paid electronically or by demand draft or Banker's Cheque in favour of the Registrar of Copyrights drawn on a scheduled bank at New Delhi.

(4) Where a fee is payable in respect of filing of a document and where the document is filed without such fee or with insufficient fee, such document shall be deemed not to have been filed for the purposes of any proceedings under these rules.

(5) No fee is required to be paid for taking extracts from Register of Copyrights or indexes for official purposes by the Central Government or the State Government.”

38. (i) In the principal rules, in the First Schedule, in FORMS II, III, V, VI and VII, wherever the words and punctuation “Registrar of Copyrights/”, occur, the same shall be omitted.

(ii) In the principal rules, in the First Schedule, in FORMS II, III, V, VI and VII, wherever the words “Copyright Board” occur, the same shall be substituted with the words “Appellate Board”.

(iii) In the principal rules, in the First Schedule, in FORMS II, III, V, VI and VII, wherever the words “Copyright Office” occur, the same shall be omitted.

(iv) In the principal rules, in the First Schedule, in Form XIV, for the words "the Copyright Rules, 2012", the words, "the Copyright Rules, 2013", shall be substituted.

39. (i) In the principal rules, in clause (b) of serial number 9 of Second Schedule, the word “Literary or” shall be omitted.

(ii) In the principal rules, in clause (b) of serial number 9 of Second Schedule, after the word “goods”, the words “or services” shall be inserted.

40. (i) In the principal rules, in clause (b) of serial number 10 of Second Schedule, the word “Literary or” shall be omitted.

(ii) In the principal rules, in clause (b) of serial number 10 of Second Schedule, after the word “goods”, the words “or services” shall be inserted.

41. In the principal rules, serial number 19 of the Second Schedule shall be omitted.

[F. No. P-24029/2/2019-IPR-VII]

RAJENDRA RATNOO , Jt. Secy.