(1)

An applicant referred to in rule 44 for registration of it as a copyright society shall not be eligible to be considered for such registration unless-

(2)

The applicant shall not carry out the business by way of sub-licensing or transferring the rights of collection distribution of royalties in respect of a right or set of rights in specific categories of works any other person or copyright.

Provided that the applicant may enter into agreement with any foreign society or organisation administering rights corresponding to the right or set of right administered by the applicant to entrust to such foreign society or organisation the administration in any foreign country of the right or set of rights administered by the applicant, or for administering in India the rights administered in a foreign country by such foreign society or organisation under sub-section (2) of section 34 of the Act

Explanation.—For the purpose of the chapter "instrument " means the memorandum and articles of association.