The Ministry of Commerce and Industry (Department for the Promotion of Industry and Internal Trade) has introduced a draft amendment to the Copyright Rules, 2013, which includes significant changes in the way license fees are collected for copyrighted works. The notification, published on June 1, 2025, outlines new regulations requiring the establishment of an online payment mechanism for the collection of license fees related to literary works, musical works, and sound recordings.

Major Changes to Online Payment for License Fees

Under the proposed draft regulations, copyright owners or licensees of literary, musical, and sound recording works would be required to establish and maintain an online platform for collecting license fees. This means that any payments related to the public communication of these works will have to be processed through this online system. Any alternative payment methods, such as cash or checks, will not be accepted, ensuring consistency and transparency in the transaction process.

The government’s move to digitize copyright transactions is aimed at simplifying the process and ensuring that copyright registration license fees are collected more efficiently and accurately. Online payment mechanisms will make it easier for both copyright owners and licensees to track payments, reducing the likelihood of disputes and delays.

Implications for Copyright Owners and Licensees

For copyright owners, such as authors, musicians, and sound recording producers, online payment systems will provide a more efficient way to manage payments. With this system, the tracking and receipt of license fees will become smooth and transparent. The change is expected to reduce the paperwork and administrative burden on copyright holders.

For licensees, which may include businesses, educational institutions, and media companies, online payment systems will provide a clear, standardized method of settling copyright obligations. This will also ensure that payments are made on time, eliminating the possibility of confusion and missed deadlines.

Feedback and Public Consultation

The draft rule is open for public comment for 30 days after publication of the notification. Objections or suggestions may be submitted to the Additional Secretary, Department of Industry Promotion, Ministry of Commerce and Industry. This consultation period will close in early July 2025. The new amendment is a step towards modernizing India’s copyright system, making it more efficient, transparent and in line with global digital trends.