(1)

A copyright 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.

(2)

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.

Provided that a copyright society may during the initial period of two years of its registration deduct up to twenty per cent of the annual total collection on account of administrative expenses incurred by the society.