Rules 54 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 54 and 55 say how an author or owner hands the administration of rights to a copyright society, on what terms the owner can pull out, and how the society issues licences, collects royalties and deducts expenses before distribution. They put numbers on the deductions and on the notice for withdrawal, so they matter to every member.
A society may accept exclusive authorisation only under a written agreement stating the rights, duration, royalty agreed and how often it is paid. For literary or musical works in films or sound recordings, the royalty (outside cinema-hall communication) is shared equally between author and film or sound recording owner. An owner may withdraw on sixty days' notice if the society fails its commitments. The society may deduct up to fifteen per cent for administration and up to five per cent for welfare, and up to twenty per cent for administration in the first two years.
Which section the rules serve
Rules 54 and 55 serve sections 33 and 34 of the Act, and rule 58(10) (on equal sharing) refers to section 18(1). See our articles on section 34 and on assignment of copyright under sections 18 and 19. If you are a creator deciding whether to authorise a society, or want a written agreement reviewed, our copyright assignment team can help.
Rule 54: accepting and withdrawing authorisation
Sub-rule (1): written, exclusive authorisation
A society may accept from an author or other owner, "or his duly authorized agent", "exclusive authorisation to administer the right or the set of rights in the specific categories of works for which the copyright society is registered", if the author, owner or agent "enters into an agreement, in writing, with the copyright society specifying":
| Item | Content |
|---|---|
| 1 | The rights to be administered |
| 2 | The duration for which they are authorised to be administered |
| 3 | The quantum of royalty agreed to |
| 4 | The frequency at which royalty is paid, in accordance with the society's Tariff and Distribution Schemes |
Proviso. For literary or musical works included in a cinematograph film or sound recording, "the share of royalty other than for communication of the work along with the cinematograph film in a cinema hall shall be on equal basis between the author of the work and the owner of film or sound recording, as the case may be."
Sub-rule (2): no conditions on distribution
"The copyright society shall not impose any condition for distribution of royalties collected to author or other owner of rights." The text does not say what counts as a "condition".
Sub-rule (3): withdrawing on sixty days' notice
The author or owner, "without prejudice to the rights under the agreement and subject to the condition of a prior notice of sixty days", may withdraw the authorisation "in case the copyright society fails to fulfil its commitments as laid down in the agreement." The sub-rule says the owner is at liberty to withdraw in that case. Withdrawal is therefore tied to a failure of the society, not available at will.
Sub-rules (4) and (5): film and sound recording royalty
- (4) The right to receive royalty for a literary or musical work in a cinematograph film, shared equally with the assignee of copyright for any use other than communication in a cinema hall, "shall not be assigned to any other copyright society other than to the society for which it is intended to be registered."
- (5) The same applies to royalty for a literary or musical work in a sound recording that is not part of a film, shared equally for any utilisation with the assignee of copyright.
The effect is a lock-in: the shared royalty right cannot be assigned to a society other than the one intended to be registered. The phrase "for which it is intended to be registered" is a drafting wrinkle; the text does not say what happens after registration. See our article on assignment under sections 18 and 19 for the Act-level rule on sharing.
Rule 55: issuing licences, collecting and distributing royalties
Sub-rule (1): licences under the Tariff Scheme
A society "may issue licences and collect royalties in accordance with Tariff Scheme in relation to the right or the set of rights in the specific categories of works for which the copyright society is registered as it has been authorised to administer in writing by the members for the period for which it has been so authorised." So three limits apply: the Tariff Scheme, the registered categories, and the written authorisation and its period.
Sub-rule (2): deductions
"The royalty so collected shall be distributed in accordance with the Distribution Scheme subject to a deduction not exceeding fifteen per cent. of the annual total collection on account of administrative expenses incurred by the copyright society and a further deduction not exceeding five per cent. for the Welfare Scheme under rule 71".
Proviso. "a copyright society may during the initial period of two years of its registration deduct up to twenty percent of the annual total collection on account of administrative expenses."
| Deduction | Cap | When |
|---|---|---|
| Administrative expenses | 15 per cent of annual total collection | Ordinarily |
| Administrative expenses | 20 per cent of annual total collection | First two years of registration |
| Welfare Scheme | 5 per cent, further | Ordinarily |
Drafting slip. The cross-reference to "the Welfare Scheme under rule 71" appears wrong: rule 71 of these Rules concerns correction of entries in the Register of Copyrights, and the welfare provisions are in the rules on code of conduct and welfare fund (see our article on rules 66 and 67 in this series). Read the reference with care. The text also does not say whether the five per cent for welfare is also lifted in the first two years.
Worked example
Ananya Rao writes lyrics and signs an exclusive written authorisation with Swarlok Society for her lyrics in sound recordings, for five years, at the royalty in the Tariff Scheme, paid quarterly. The agreement states each of the four items. If the royalty on one of her songs, in a sound recording outside any film, is shared with the recording owner, the share is equal under rule 54(1) proviso. Swarlok collects Rs. 10,00,000 in a year, in its fourth year of registration. It may deduct up to Rs. 1,50,000 for administration and a further Rs. 50,000 for the Welfare Scheme before distributing the rest. If Swarlok stops paying as agreed, Ananya can give sixty days' notice and withdraw her authorisation.
Who does what
| Person | Role |
|---|---|
| Author or owner (or agent) | Signs the written agreement; may withdraw on sixty days' notice if the society fails |
| Society | Accepts authorisation; issues licences under the Tariff Scheme; deducts within caps; distributes under the Distribution Scheme |
What the rules do not say
- No form for the authorisation agreement.
- No minimum or maximum duration of authorisation.
- No definition of "commitments", so what counts as a failure is not defined.
- No fee in the Second Schedule for these steps.
- No mention of the Board; the tariff appeal to the Board is in rule 57, covered in our article on rules 56 and 57.
Need help with an authorisation or a licence agreement?
The written agreement decides what a society may do for you and when you can leave. Our copyright assignment team can review it with you.
Key takeaways
- A society takes exclusive authorisation only under a written agreement stating rights, duration, royalty and payment frequency.
- Film and sound recording royalty (outside cinema-hall communication) is shared equally between author and owner.
- An owner may withdraw on sixty days' notice if the society fails its commitments.
- Deductions: up to 15 per cent administrative and up to 5 per cent welfare; up to 20 per cent administrative in the first two years.
- Rule 55(2)'s reference to "rule 71" looks like a slip; the text is as notified in 2013, so check later amendments.
Read next
- Rules 56–57: tariff scheme and appeal to the Board on tariff scheme
- Rule 58: distribution scheme of a copyright society
- Copyright societies in India: PPL, IPRS, ISRA
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.