(1)

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.

(2)

The distribution shall, reasonably, be in proportion to the royalty income of the copyright society derived from the grant of licences for right or 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 in the distribution of royalties by the copyright society.

(4)

While distributing the royalties the copyright society shall inform all members about the basis on which such amount of royalties are being distributed.

(5)

The Distribution 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 are determining the share of distribution of its members and reveal the details of the same in a manner that is easily understandable to its members.

(7)

The distribution of royalties shall be based on actual use or reliable statistical data that fairly represent the commercial exploitation of the licensed rights.

(8)

The Distribution Scheme shall ensure that the royalties to all members are distributed at least once in a quarter.

(9)

The copyright society shall not make any payment in the nature of minimum guarantee to its members against the share of royalties due to its members.

(10)

The royalties collected based on the Tariff Scheme for the licensing of the rights in the literary or musical works included in a cinematograph film or sound recording shall be shared on an equal basis with the authors of literary or musical works and the owners of rights in cinematograph film or sound recording under sub-section (1) of section 18.