On June 4, 2025, the Ministry of Commerce and Industry, through the Department for Promotion of Industry and Internal Trade (DPIIT), released a draft notification proposing amendments to the Copyright Rules, 2013. The primary focus of this amendment is to introduce Rule 83(A), which mandates an exclusive online payment system for collecting licence fees associated with the public communication of certain copyrighted works.
Key Provisions of Rule 83(A):
• Mandatory online payment mechanism: Copyright owners or licensors of literary works, musical works, and sound recordings are required to establish and maintain an online system for collecting licence fees from licensees.
• Exclusive digital transactions: All licence fee payments must be processed exclusively through the specified online system. Alternative methods of payment, such as cash or cheques, are not permitted under this rule.
Distinction from Existing Rule 83:
While the existing Rule 83 pertains to fees payable to the Copyright Office, the proposed Rule 83(A) specifically addresses the collection of licence fees by copyright owners or licensors. This shift emphasises the need for a streamlined, transparent, and digitised approach to royalty collection, aligning with the evolving digital landscape of content consumption.
Implications and Considerations:
• Enhanced transparency: The digitalisation of licence fee transactions aims to improve traceability and accountability, ensuring that creators receive their rightful royalties.
• Efficiency in royalty distribution: By automating the payment process, the amendment seeks to reduce delays and discrepancies in royalty distribution, benefiting both creators and licensees.
• Challenges for implementation: Stakeholders, especially in regions with limited digital infrastructure or among individuals with low digital literacy, may face challenges adapting to the mandatory online system. Addressing these concerns will be crucial for the successful implementation of the amendment.
Public consultation:
The Department for Promotion of Industry and Internal Trade (DPIIT) has invited comments and suggestions from stakeholders on the draft amendment. Submissions can be made within 30 days from the date of the notification, i.e., by July 4, 2025. Stakeholders are encouraged to provide feedback to ensure that the final rules are comprehensive and inclusive.
FICPI’s view and involvement
FICPI uniquely combines education and advocacy on topics around patents and trade marks, with a focus on developing the professional excellence of its individual members. FICPI Forums, Congress, committees and meetings are opportunities to gather insights from the international IP attorney community on any issue, whether it be practice-related or topics of patent and trade mark law.
Next steps
- Connect with FICPI member IP attorneys in India – search the FICPI member directory
- Consider getting involved with the work of FICPI’s Study & Work Committee