Govt proposes mandatory online payment system for copyright licence fees

The move is aimed at streamlining payments and improving transparency in the way royalties are collected and distributed, especially amid the growing reliance on digital modes of content consumption and public performance.

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A notification in this regard has been issued by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry on 5 June, seeking public comments on the draft Copyright (Amendment) Rules, 2025 within 30 days, possibly by 4 July.

The draft rules insert a new provision—Rule 83(A)—in the Copyright Rules, 2013, requiring that “all payments of such licence fee shall be processed exclusively through said online system,” and explicitly barring any alternative mode of payment.

Stakeholders have been given 30 days to submit their objections or suggestions. Any feedback received within this period will be duly examined by the central government before finalizing the rules, the ministry said.

The proposal, once finalized, could change the way licensing entities, including copyright societies and aggregators, operate, potentially reducing disputes over manual transactions and non-transparent fee collection. Legal experts said that the amendment reflects a broader policy shift towards digital governance and accountability in the IP rights ecosystem.

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“The government appears to be moving towards a fully auditable, traceable digital trail for royalty payments, which will benefit both creators and licensees by reducing ambiguity,” said Manish K Shubhay, Partner at The Precept-Law Offices.

However, questions remain over the operational aspects—whether existing copyright societies will be required to revamp their systems or if the change targets individual right holders.

India has seen a steady rise in content licensing for OTT platforms, radio broadcasters, live events, and public performances, making timely and transparent payments a long-standing demand of creators and music labels. On the proposed draft rule, a senior commerce ministry official said that the amendment was designed to “facilitate efficient royalty flows and curb evasive practices.”

However, the draft rule does not currently specify the format or standards of the online mechanism, leaving room for further clarifications during the consultation process.

“IPRS welcomes this progressive move aimed at enhancing transparency and streamlining the copyright licensing process. We are pleased to share that IPRS implemented a fully online and digital licensing system nearly five years ago. Today, over 99.5% of our licensing fees for royalties are collected digitally, ensuring ease, accessibility, and transparency for users,” said Rakesh Nigam, chief executive officer (CEO) of IPRS (Indian Performing Right Society), a collective rights management organization.

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“Our licensing tariffs are publicly available on the IPRS website, enabling users to choose the license best suited to their needs with complete clarity. We also maintain a strict no-cash policy, reinforcing our commitment to transparency and efficiency.

This proposed mandate further aligns with the steps IPRS has already taken and will help standardize best practices across the sector for the benefit of creators, users, and the broader copyright ecosystem.”