There must be some among you who are not aware but then IPRS stands for Indian Performance Research Society. Their job is, wherever stage shows and performances happen, their agent goes and collects the required fee because the organizers are liable to pay.
Hence, before any such event happens some thousands of rupees are paid and then those songs can be used in any way. Sometimes such events tend to happen secretly without notifying the IPRS folks. At that point, they will attack the organizers directly at the venue or impose penalty later.
This penalty comes from court and the amount goes upto 5 lakhs. If you don’t cough it up you are in big trouble. With this fear, IPRS people are being called and being given the money before the program starts. After the program, the money is distributed by IPRS as follows- 50% to music companies, lyricists -25% and Music Director- 25%.