23. Notice for making Cover Version.— (1) Any person intending to make a cover version, being a sound recording in respect of any literary, dramatic or musical work under sub-section (1) of section 31C shall give a notice of such intention to the owner of the copyright in such works and to the Registrar of Copyrights at least fifteen days in advance of making of the cover version and shall pay to the owner of the copyright in the original literary, dramatic and musical works, along with the notice, the amount of royalties due in respect of a minimum of fifty thousand copies and if the number is more, for all the copies of cover version to be made, at the rate determined by the Board in this regard under rule 27 and provide copies of all covers and labels with which the cover version is to be sold:

Provided that in respect of works in a particular language or dialect for which the Board by general order has fixed a lower minimum as per proviso to sub-section (4) of section 31C, the applicant shall pay the royalty for the lower minimum fixed by the Board and if the number is more, for all the copies of the cover version:

Provided further that any person intending to make a cover version shall give a notice under this Chapter only after the royalty to be paid is determined by the Board under rule 27 and published in the ¹[journal] and in the website of the Copyright Office and the Board.

Explanation: For the purpose of this rule “cover version” means a sound recording made in accordance with Section 31C and this rule.

(2) Such notice shall contain the following information, namely:—

(a) the particulars of the work in respect of which cover version is to be made;

(b) alterations, if any, which are proposed to be made for the adaptation of the work to the cover version and the evidence of consent of the author of work, if required, for making such alteration;

(c) the name, address and nationality of the owner of the copyright in the work;

(d) particulars of the sound recording made previously of the work;

(e) the total number of copies of the cover version and the calendar year in which it is proposed to be made;

(f) the medium in which the sound recording was last made and the cover version is proposed to be made;

(g) the price at which the cover version is proposed to be sold; and

(h) the details of the advance payment of royalties paid as determined by the Board in this regard under rule 27.

24. Conditions to be followed while making cover version:- (1) While making the cover version the producer shall maintain the integrity of the original literary, dramatic or musical works, except to the extent as may be technically necessary for the purpose of making the cover version.

(2)The cover version shall not be issued in any form of packaging or with any cover or label including any label or carton or inlay card or website having design or colour scheme or layout or getup similar to that of the original sound recording which is likely to mislead or confuse the public as to the identity of the original sound recording.

(3) The cover version shall not use the label of the original sound recording and shall state in bold letters on the cover that it is a cover version made under section 31C.

(4) The cover version shall prominently display the names of performers and shall not contain the name or depict in any way any performer of an earlier sound recording of the same work or any cinematograph film in which such sound recording was incorporated.

25. Notice for making additional copies of Cover version.- A person who made cover version under a licence granted under section 31C after giving notice and intends to make additional copies during the period for which he gave notice for making cover version under section 31C or desiring to continue with the making of cover version shall give fresh advance notice under rule 23 and comply with all the conditions including the payment of advance royalties determined by the Board in this regard under rule 27.

26. Maintaining of records.—(1) The person making cover version shall maintain at its principal place of business a register containing the details of total number of copies made, sold and number of copies remaining in stock, except in the case of sale by on-line downloads.

(2) The person making such cover version shall maintain separate books of accounts containing particulars about the total expenditure in making cover version under different heads of expenditure along with total income derived from the sale of number of copies of such cover version.

(3) The records, registers and books of account kept at the principal place or business of the person making cover version shall be open for inspection to the owner of rights or his duly authorized agent or representative on his behalf during the business hours with prior permission of the person making such cover version and, if needed, they may obtain copies of relevant extracts at their own cost.

27. Manner of determining royalties.—(1) The Board shall immediately after its constitution either suo motu or on receipt of a request from any interested person give public notice of its intention to fix royalties for making cover version under section 31C and may invite suggestions for determining the same.

(2) The notice under sub-section (1) shall be published by the Board in the ²[journal] and the same to be re-published in two daily news papers having circulation in the major part of the country and shall post the same on the website of the Copyright Office and the Board.

(3) Any owner of copyright or any person involved in the business of making cover version or any other interested person may within thirty days from the date of publication of public notice under sub-rule (1) may give suggestions with adequate evidence as to the rate of royalties to be fixed including different rates for different works, languages, media and formats.

(4) The Board shall, after giving an opportunity of being heard to the persons who made relevant suggestions under sub-rule (3), consider such suggestions, as it deems fit.

(5) The Board shall within a period of two months from the last date of receipt of the suggestions, determine the royalties payable to the owner of the copyright under sub-section (2) of section 31C. The Board while determining the royalty shall take into consideration the following factors, namely:-

(a) the retail price of the earlier sound recording;

(b) the prevailing standards of royalties in regard to literary, dramatic or musical work for making such recordings;

(c) the nature and class of the work, language, format and medium in which it is to be sold; and

(d) such other matters as may be considered relevant by the Board.

(6) The Board may revise the rates of royalties periodically, at least once in a year, keeping in view of the provisions of this rule.

28. Complaint is respect of non-payment of royalties.—(1) The owner of Copyright in the literary, dramatic or musical works included in original sound recording may make a complaint to the Board in case of non-payment of royalty in full, as determined by the Board in respect of the cover version purported to be made.

(2) If the Board is prima facie satisfied as to the genuineness of the complaint, it may pass an interim order directing the person making the cover version to cease from making further copies.

(3) The Board may, after holding such enquiry as it considers necessary and after giving an opportunity of being heard to the owner of rights in any literary, dramatic or musical works included in original sound recording, make such further order, as it deem fit, including an order for payment of royalty.

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