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Section 4: Sharing of advertisement revenue and Marketing of commercial time

Sports Broadcasting Signals (Mandatory Sharing with Prasar Bharati) Rules, 2007Central Rules · 2007

(1) The Prasar Bharati shall on being informed in terms of sub-rule (1) of rule 3 or otherwise, take steps to determine who out of the two, that is the content rights owner or holder or the Prasar Bharati, shall undertake the marketing of commercial time generated by the retransmission on the Prasar Bharati's Channel and either of the party, which offers to maximize the revenue, shall get the marketing rights.

(2) For the purposes of sub-rule (1), a sealed bid procedure shall be adopted and such bids shall be opened in presence of representatives of both the parties and the party bidding higher shall get the marketing rights.

(3) The final amount so determined shall be the guaranteed net revenue after payment of taxes and duties, offered by the party getting the marketing rights and the revenue to be shared between the parties shall be the higher of the guaranteed revenue or actual revenue realised.

(4) The party getting the marketing right shall give a bank guarantee to the other party for an amount equal to the other party's share of guaranteed revenue which shall be valid for a period of six months from the first day of the month succeeding the month in which the sporting event comes to an end.

(5) The party having the marketing rights shall be entitled to obtain all release orders and payments in its name and all payments shall be received by it only by way of account payee cheques, which shall be deposited in a designated escrow account from which the parties shall be at liberty to make withdrawals after discharging the tax liability.

(6) The party having the marketing rights shall submit to the other party complete accounts of revenue earnings, duly audited by a chartered accountant and along with all the release orders; and shall pay the entire guaranteed amount as well as any other amount to which the other party is entitled as per the revenue sharing formula under the Act and sub-rule (3) of rule 4, within seventy five days from the first day of the month succeeding the month in which the sporting event comes to an end.

Where this provision sits

ActSports Broadcasting Signals (Mandatory Sharing with Prasar Bharati) Rules, 2007
Section4
Marginal noteSharing of advertisement revenue and Marketing of commercial time
JurisdictionCentral
StatusIn force as published by the source

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