It said it received 57 responses to its consultation, which closed in February. The government now plans to allow the Intellectual Property Office to take on the role of an authorising body so that people can use orphan works lawfully.
The authorising body will take the place of an absent copyright owner and consider applications to use orphan works. It will also decide what fees a user should pay, grant a licence to the user, and hold the fees it receives for a certain period of time.
The government says that users will only be granted a licence if they can show that they have carried out a diligent search for the copyright owner.
The final regulations and explanatory memorandum are expected to be laid before Parliament before September.