38. Application for license.—(1) An application for a licence under sub-section (1A) of section 32 and section 32A to publish or to translate any work in any language or to reproduce any published work shall be made in Form VII and shall be accompanied by the fee specified in the Second Schedule.

(2) Every such application shall be in respect on one work only and in respect of translation of a work into one language only.

39. Notice of application.—(1) A copy of such application shall be served ¹[through electronic means or] by registered post on the owner of copyright.

(2) The Board shall give an opportunity of being to the applicant and also, wherever practicable, to any person claiming any interest in the copyright of the work, and may take such evidence in respect of the application, as it may deem fit.

(3) If the Board is satisfied that the licence for a translation of the work in the language or for publication or for reproduction of the work, applied for may be granted to the applicant, or if there are more applicants than one, to such of the applicants, as in the opinion of the Board, would best serve the interest of the general public, it shall grant a licence within a period of two months.

(4) Every such licence shall be subject to the conditions provided in clause (i) of sub-section (4) of section 32 and clause (i) of the sub-section (4) of section 32A of the Act relating to payment of royalties and shall specify:

(a) the period within which such work shall be published;

(b) the rate at which royalties in respect of the copies of such work sold to the public shall be paid to the owner of the copyright in the work;

(c) in the case of translation of the work, the language in which the translation shall be produced and published; and

(d) the person or persons to whom such royalties shall be payable.

(5) The grant of every such licence shall, as soon as possible, be ²[published in journal] and shall be posted on the website of the copyright office and the Board and a copy of the licence shall be sent to the other parties concerned.

40. Manner of determining royalties.—The Board shall determine the royalties payable to the owner of the copyright under clause (i) of sub-section (4) of section 32 and clause (i) of sub section (4) of section 32A of the Act. The Board may while determining the royalty shall take into consideration the following, namely: -

(a) the proposed retail price of a copy of such work;

(b) the prevailing standards of royalties with regard to such works; and

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

41. Extension of the period of licence.—The Board may, on the application of the licensee and after notice to the owner of the copyright, wherever practicable, if it is satisfied that the licensee was for sufficient reasons unable to produce and publish the translation or for publish or reproduce the work within the period specified in the licence, extend such period.

42. Cancellation of licence.—The Board may, after giving the licensee an opportunity of being heard, cancel the licence on any of the following grounds, namely: –

(a) that the licensee has failed to produce and publish such work within the time specified in the licence or within the time extended on the application of the licensee;

(b) that the licence was obtained by fraud or misrepresentation as to any essential fact; and

(c) that the licensee has contravened any of the terms and conditions of the licence.

43. Notice for termination of licence.—Notice for termination of licence under proviso to sub-section (1) or sub-section (2) of section 32-B shall be served on the person holding the licence by the owner of copyright in Form IV of the First Schedule annexed to these rules.

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