Rule 58 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.
Rule 58 sets out how a copyright society must pay out the royalties it collects. It requires a written Distribution Scheme, approved by the General Body and framed within three months of the society starting business, and then lays down ten principles: proportionality, no discrimination, transparency, actual-use data, quarterly payment, no minimum assured payment to members, and equal sharing in films and sound recordings.
A society must frame a Distribution Scheme and put it to the General Body within three months of becoming entitled to start business. Distribution must be reasonably proportionate to royalty income per author or owner, without discrimination, transparent, based on actual use or reliable statistical data, and made at least once a quarter. The society may not pay a minimum assured payment to members. Royalty for literary or musical works in films or sound recordings is shared equally with the film or sound recording owner.
Which section the rule serves
Rule 58 serves sections 33 to 36 of the Act on the working of societies, and its last sub-rule refers to section 18(1). See our articles on section 34 and assignment of copyright. If you run a society or are a member who wants to understand a statement of royalty, a legal consultation can help read the scheme against this rule.
Rule 58(1): the scheme and the deadline
"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."
Three points: the scheme covers royalties "specified in the Tariff Scheme"; payment is to members in the Register of Authors and Owners; and the General Body must approve it. Approval is by the process in rule 60, covered in our article on rules 59 to 61.
Drafting slip. The rule refers to the Register "maintained under clause (i) of rule 59". Rule 59, as printed, has clauses (a) to (c) in sub-rule (1) and no clause (i) about a register. The Register of Authors and Other Owners is in fact set up by rule 64(i), and rules 62 and 65 refer to it that way. Read the reference accordingly.
Rule 58(2) to (10): the principles
| Sub-rule | Principle |
|---|---|
| (2) | Distribution "shall, reasonably, be in proportion to the royalty income of the copyright society derived from the grant of licences for right or the 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" |
| (4) | The society shall inform all members about the basis on which royalties are being distributed |
| (5) | The 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 each member's share and reveal the details in a manner easily understandable to members |
| (7) | Distribution "shall be based on actual use or reliable statistical data that fairly represent the commercial exploitation of the licensed rights" |
| (8) | The scheme "shall ensure that the royalties to all members are distributed at least once in a quarter" |
| (9) | The society shall not make any payment to members in the nature of a minimum assured sum against the share of royalties due |
| (10) | Royalties collected under the Tariff Scheme for literary or musical works in a film or sound recording are shared on an equal basis with the authors of the literary or musical works and the owners of rights in the film or sound recording, under section 18(1) |
Reading the principles together
- Proportion and fairness. Sub-rules (2), (3) and (5) together mean that a member's share follows the royalty earned from that member's rights, with no preference between authors and other owners. "Reasonably" in (2) allows some flexibility; the text does not say how much.
- Evidence. Sub-rule (7) requires actual use or "reliable statistical data". The text does not say what data is reliable or who tests it.
- Timing. Sub-rule (8) fixes a quarterly minimum. The text does not say within how many days of the quarter-end.
- No advances to members. Sub-rule (9) bars a minimum assured payment to members. Rule 56(5) separately bars minimum assured payments from licensees on actual use, except in listed exceptional cases; the two rules cut in different directions.
- Film and sound recording share. Sub-rule (10) matches the proviso to rule 54(1). See our article on rules 54 and 55 for the 15 per cent, 5 per cent and 20 per cent deductions that apply before distribution.
Who does what
| Person | Role |
|---|---|
| Governing Council | Prepares the scheme (rule 60(1)) |
| General Body | Approves the scheme and any change |
| Society | Distributes at least quarterly, informs members of the basis |
| Member | Receives a share in proportion to royalty income |
A worked example
Swarlok Society starts business on 1 April. By 30 June it must have framed its Distribution Scheme and put it to the General Body. The scheme says that royalties from each licence class are distributed to the members whose works were used, based on broadcast logs and a sampling method the scheme explains in plain terms. It provides for payment in July, October, January and April. It contains no advance or minimum assured payment for members. For a song in a sound recording not forming part of a film, it shares the royalty equally between the lyricist and the recording owner. Members receive a note setting out the basis of each distribution.
What rule 58 does not say
- No percentages beyond the equal share in sub-rule (10); deductions are in rule 55.
- No form for the scheme or for the member's statement.
- No definition of "reliable statistical data".
- No consequence for missing the three-month deadline, though failure to distribute as per the scheme is a ground for cancellation in rule 53(b)(v).
- No mention of the Board.
Need help with a distribution scheme?
A good scheme is easy for members to follow and consistent with every sub-rule above. Our legal consultation team can review a draft scheme or a member's query against the text.
Key takeaways
- The Distribution Scheme must be framed and approved by the General Body within three months of starting business.
- Distribution is proportionate, non-discriminatory, transparent and based on actual use or reliable data.
- Members are paid at least once a quarter, with no minimum assured payment against royalties due.
- Film and sound recording royalties are shared equally with the film or recording owner.
- Rule 58(1)'s cross-reference to rule 59(i) does not match the printed text (the Register is in rule 64(i)); the text is as notified in 2013, so check later amendments.
Read next
- Rules 59–61: management, approval of schemes and meetings of a copyright society
- Rules 56–57: tariff scheme and appeal to the Board on tariff scheme
- 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.