(1)

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, it shall frame a scheme of tariff to be called the "Traffic Scheme " under section 33A of the Act setting out the nature and quantum of royalties which it proposes to collect in respect of right or the set of rights in the specific categories work administered by it.

(2)

Every copyright society shall display its Tariff Scheme by posting it on its website.

(3)

The Tariff Scheme shall indicate the separate rates for-

(a) different categories of users;

(b) different media of exploitation, such as telephone, broadcast or internet;

(c) different types of exploitation whether by an individual or by groups or whether single or multiple use or for advertising;

(d) different durations of use and territory; and

(e) any other differentiation factor indicated by the society, as it may deem fit.

(4)

While fixing the tariff the copyright society shall follow the guidelines issued by any court or the Board, if any, and may consult the user groups.

(5)

The copyright society shall collect the royalties from a licensee in advance where the Tariff Scheme provides for lump sum payment of royalties. In cases where the Tariff Scheme provides for payments in instalments, each instalment shall be collected in advance. However, in cases where the Tariff Scheme provides for the payment of royalties based on actual use, the copyright society may collect an advance at the time of issue of licence and settle the final payment based on actual use at the end of the period for which the licence is issued or granted.

Provided that the copyright society shall not receive any payment in the nature of minimum guarantee from a licensee whose royalty payments are based on actual use which are to be settled with the society at the end of the licence period except where, any exceptional circumstances are specifically included in Tariff Scheme and the individual case has been approved by the Governing Council.

(6)

The copyright society may revise the Tariff Scheme periodically but not earlier than a period of twelve months by following the rules. It shall publish the date of coming into of the revised Tariff Scheme at least before two months in advance and the same shall be posted on its website.