Rules 40 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rules 40 to 43 finish Chapter X of the Copyright Rules, 2013. They apply to licences granted under section 32(1A) and section 32A of the Copyright Act, 1957 (publication, translation and reproduction) and cover how royalty is determined, when the licence period can be extended, when the licence can be cancelled, and how the owner ends a licence by a Form IV notice under section 32B.
Royalty is determined from the proposed retail price, the prevailing standards of royalties and other relevant matters (rule 40). The licence period can be extended for sufficient reasons after notice to the owner where practicable (rule 41). It can be cancelled after a hearing for delay, fraud or misrepresentation, or breach of terms (rule 42). The owner's notice to terminate under section 32B goes in Form IV (rule 43). Rules 40 to 42 refer to the Board, abolished at Act level in 2021.
The Board caution
Rules 40, 41 and 42 give each step to "the Board". That is the text as notified in 2013. The Tribunals Reforms Act, 2021 abolished the Board at Act level and moved its role under sections 32 and 32A to the Commercial Court (see the Appellate Board provisions after 2021). These Rules have not been checked here for a matching amendment. This article explains what the rules require; it does not present procedure before the Board as current. For the Act text see section 32A. If you are a licensee or an owner with a licence in force, our copyright objection reply team can advise on the position.
Rule 40: manner of determining royalties
"The Board shall determine the royalties payable to the owner of the copyright under clause (i) of sub-section (4) of section 32 and clause (i) of sub section (4) of section 32A of the Act." While determining it, the Board takes into consideration:
- (a) the proposed retail price of a copy of such work;
- (b) the prevailing standards of royalties with regard to such works; and
- (c) such other matters as may be considered relevant.
No rate is printed. The wording in rule 40 is close to rule 35 on translations; the difference is that rule 35 speaks of the retail price of a copy of the "translation", while rule 40 speaks of a copy of "such work", which covers publication, translation and reproduction. Compare with rules 35 to 37.
Rule 41: extension of the licence period
The Board "may, on the application of the licensee and after notice to the owner of the copyright, wherever practicable, if it is satisfied that the licensee was for sufficient reasons unable to produce and publish the translation or for publish or reproduce the work within the period specified in the licence, extend such period."
Drafting slip. The words "or for publish or reproduce the work" are garbled; the sense is "or to publish or reproduce the work". The rule sets no maximum period for an extension and does not define "sufficient reasons".
Rule 42: cancellation of the licence
After giving the licensee an opportunity of being heard, the Board may cancel the licence on any of the following grounds:
| Ground | Text |
|---|---|
| (a) | The licensee has failed to produce and publish the work within the time specified in the licence or within the time extended on the licensee's application |
| (b) | The licence was obtained by fraud or misrepresentation as to any essential fact |
| (c) | The licensee has contravened any of the terms and conditions of the licence |
Ground (b) is followed by "and", but "on any of the following grounds" means one ground is enough.
Rule 43: notice for termination of licence (Form IV)
"Notice for termination of licence under proviso to sub-section (1) or sub-section (2) of section 32-B shall be served on the person holding the licence by the owner of copyright in Form IV of the First Schedule annexed to these rules."
Rule 43 is the third rule that points to Form IV: rule 15 (section 31A licences) and rule 22 (section 31B licences) do too, and Form IV itself is marked "See rules 15, 22 and 43". Our article on section 32B covers the Act text.
What Form IV contains
Form IV is a letter, addressed to the licence holder, giving notice "in accordance with first proviso to sub-section (1) or the first proviso to sub-section (2) of section 32 B" that copies of the translation or reproduction of the work given below (in a mentioned language) "have been published by /me/under my authorization". A Statement follows:
| Item | Content |
|---|---|
| 1 | Title of the work |
| 2 | Name and address of the owner of copyright |
| 3 | Year and country of first publication; name, address and nationality of the publisher |
| 4 | Name and address of the author who has translated the work |
| 5 | Name and address of the publisher and the year in which the translation was published in India |
| 6 | Name and address of the publisher and the year in which the reproduction was published in India |
| 7 | Retail price of the published work |
The effect of the form is that the owner (or someone under the owner's authority) has himself published the translation or reproduction, and the owner is serving that fact on the licence holder as the ground for termination. The text of the rules says nothing about the timing of that notice beyond the reference to the section 32B provisos; the periods are in the Act, not here.
Drafting point. The form's wording "published by /me/under my authorization" has stray slashes and omits "by" in places; read it as "by me or under my authorisation".
Who does what
| Person | Role |
|---|---|
| Owner | Serves Form IV on the licence holder; receives royalty |
| Licensee | Produces and publishes in time; may apply for extension; is heard before cancellation |
| Board (as notified) | Determines royalty, extends, cancels |
A worked example
Anand Verma holds a licence to reproduce a published economics text for classroom use. He pays royalty at the rate stated in the licence and is due to publish within the licence period. He falls behind because of a printer's delay and applies for an extension before the period ends, with reasons; the owner is given notice. Meanwhile the owner, Shanta Publishing, itself publishes a translation in the language concerned and serves Form IV on Anand under rule 43, stating the details of that edition. Under rule 42, a failure by Anand to publish within time, or a breach of the licence terms, also allows cancellation after he is heard.
What the rules do not say
- No royalty rate.
- No limit on extensions and no definition of "sufficient reasons".
- No time within which the licence holder may answer a Form IV notice.
- Whether a Form IV notice needs to be filed with the Registrar; rule 43 says only that it is served on the person holding the licence.
- No fee for the notice or for an extension.
Need help with an extension, cancellation or termination notice?
Whether you hold the licence or own the work, dates and documents decide these questions. Our copyright objection reply team can read the licence and the rules with you and help prepare the notice or the response.
Key takeaways
- Rule 40 lists three royalty inputs: proposed retail price, prevailing standards and other relevant matters; no rate is printed.
- Rule 41 allows extension on the licensee's application for sufficient reasons.
- Rule 42 allows cancellation after a hearing on three grounds.
- Rule 43 requires the owner's section 32B termination notice in Form IV, served on the licence holder.
- The Board is abolished at Act level; check later amendments.
Read next
- Rules 38–39: licence for publication, translation and reproduction
- Rules 44–45: application for registration of a copyright society and membership
- Copyright licensing: exclusive and non-exclusive
Disclaimer: Based on the Copyright Rules, 2013 as notified (with the 2016 amendment), read with the Tribunals Reforms Act, 2021, as consulted on 1 October 2026. Later amendment rules, forms and fees should be checked in their current form. This article is general information, not legal advice; check the official text before acting.