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Unknown - "The Bible, King James version, Book 40: Matthew"

David Widger - "Quotations from the Works of Mark Twain"

James Root Hulbert - "Chaucer's Official Life"

David Starr Jordan - "California and the Californians"

Copyright Law of the United States of America

T >> The US Copyright Office >> Copyright Law of the United States of America




------------------
Chapter 9 Endnotes

1 In 1984, the Semiconductor Chip Protection Act amended title 17 of
the *United States Code *to add a new chapter 9 entitled "Protection of
Semiconductor Chip Products." Pub. L. No. 98-620, 98 Stat. 3347.

2 In 1997, the heading for section 903 in the table of sections was
amended by adding ", transfer, licensure, and recordation" at the end
thereof, in lieu of "and transfer." Pub. L. No. 105-80, 111 Stat. 1529,
1535.

3 In 1987, section 902 was amended by adding the last sentence in
subsection (a)(2). Pub. L. No. 100-159, 101 Stat. 899, 900.

4 In 1997, section 909 was amended by correcting misspellings in
subsection (b)(1). Pub. L. No. 105-80, 111 Stat. 1529, 1535.

5 In 1990, the Copyright Remedy Clarification Act amended section 910
by adding the last two sentences to subsection (a). Pub. L. No. 101-553,
104 Stat. 2749, 2750. In 1997, a technical correction amended section
910(a) by capitalizing the first word of the second sentence. Pub. L.
No. 105-80, 111 Stat. 1529 1535.

6 In 1990, the Copyright Remedy Clarification Act amended section 911
by adding subsection (g). Pub. L. No. 101-553, 104 Stat. 2749, 2750.

7 In 1988, the Judicial Improvements and Access to Justice Act amended
section 912 by deleting subsection (d) and redesignating subsection (e)
as subsection (d). Pub. L. No. 100-702, 102 Stat. 4642, 4672. The Audio
Home Recording Act of 1992 amended section 912 by inserting "or 10"
after "8" in subsections (a) and (b). Pub. L. No. 102-563, 106 Stat.
4237, 4248.

8 In 1987, section 914 was amended in subsection (e) by inserting "on
July 1, 1991" in lieu of "three years after such date of enactment" and
by adding the last sentence to subsection (f)(2). Pub. L. No. 100-159,
101 Stat. 899. The Semiconductor International Protection Extension Act
of 1991 amended section 914 by inserting "or implementing" after
"enacting" in the first sentence of subsection (a)(1)(B), by changing
the date in subsection (e) to "July 1, 1995" and by changing the date in
the last sentence of subsection (f)(2) to "July 1, 1994." Pub. L. No.
102-64, 105 Stat. 320.

On July 1, 1995, section 914 expired as required by subsection (e). It
was rendered largely unnecessary upon the entry into force on January 1,
1995, of the Agreement on Trade-Related Aspects of Intellectual Property
Rights (TRIPs)(Annex 1C to the World Trade Organization (WTO)
Agreement). Part II, section 6 of TRIPs protects semiconductor chip
products and was the basis for Presidential Proclamation No. 6780, March
23, 1995, under section 902(a)(2) extending protection to all present
and future WTO members (34 countries as of February 10, 1999), as of
January 1, 1996. See Part IV of the Appendix.

For a discussion of Congressional findings regarding extending
protection to semiconductor chip products of foreign entities, see Pub.
L. No. 100-159, 101 Stat. 899, and the Semiconductor International
Protection Extension Act of 1991, Pub. L. No. 102-64, 105 Stat. 320.5

------------------------------------------------------------------------

Chapter 10 [1]

Digital Audio Recording Devices and Media

+ Subchapter A--Definitions
+ 1001. Definitions
+ Subchapter B--Copying Controls
+ 1002. Incorporation of copying controls
+ Subchapter C--Royalty Payments
+ 1003. Obligation to make royalty payments
+ 1004. Royalty payments
+ 1005. Deposit of royalty payments and deduction of expenses
+ 1006. Entitlement to royalty payments
+ 1007. Procedures for distributing royalty payments
+ Subchapter D--Prohibition on Certain Infringement Actions, Remedies,
and Arbitration
+ 1008. Prohibition on certain infringement actions
+ 1009. Civil remedies
+ 1010. Arbitration of certain disputes


Subchapter A Definitions


Section 1001. Definitions

As used in this chapter, the following terms have the following
meanings:

(1) A "digital audio copied recording" is a reproduction in a digital
recording format of a digital musical recording, whether that
reproduction is made directly from another digital musical recording or
indirectly from a transmission.

(2) A "digital audio interface device" is any machine or device that is
designed specifically to communicate digital audio information and
related interface data to a digital audio recording device through a
nonprofessional interface.

(3) A "digital audio recording device" is any machine or device of a
type commonly distributed to individuals for use by individuals, whether
or not included with or as part of some other machine or device, the
digital recording function of which is designed or marketed for the
primary purpose of, and that is capable of, making a digital audio
copied recording for private use, except for-

(A) professional model products, and

(B) dictation machines, answering machines, and other audio recording
equipment that is designed and marketed primarily for the creation of
sound recordings resulting from the fixation of nonmusical sounds.

(4)(A) A "digital audio recording medium" is any material object in a
form commonly distributed for use by individuals, that is primarily
marketed or most commonly used by consumers for the purpose of making
digital audio copied recordings by use of a digital audio recording
device.

(B) Such term does not include any material object-

(i) that embodies a sound recording at the time it is first distributed
by the importer or manufacturer; or

(ii) that is primarily marketed and most commonly used by consumers
either for the purpose of making copies of motion pictures or other
audiovisual works or for the purpose of making copies of nonmusical
literary works, including computer programs or data bases.

(5)(A) A "digital musical recording" is a material object-

(i) in which are fixed, in a digital recording format, only sounds, and
material, statements, or instructions incidental to those fixed sounds,
if any, and

(ii) from which the sounds and material can be perceived, reproduced, or
otherwise communicated, either directly or with the aid of a machine or
device.

(B) A "digital musical recording" does not include a material object-

(i) in which the fixed sounds consist entirely of spoken word
recordings, or

(ii) in which one or more computer programs are fixed, except that a
digital musical recording may contain statements or instructions
constituting the fixed sounds and incidental material, and statements or
instructions to be used directly or indirectly in order to bring about
the perception, reproduction, or communication of the fixed sounds and
incidental material.

(C) For purposes of this paragraph-

(i) a "spoken word recording" is a sound recording in which are fixed
only a series of spoken words, except that the spoken words may be
accompanied by incidental musical or other sounds, and

(ii) the term "incidental" means related to and relatively minor by
comparison.

(6) "Distribute" means to sell, lease, or assign a product to consumers
in the United States, or to sell, lease, or assign a product in the
United States for ultimate transfer to consumers in the United States.

(7) An "interested copyright party" is-

(A) the owner of the exclusive right under section 106(1) of this title
to reproduce a sound recording of a musical work that has been embodied
in a digital musical recording or analog musical recording lawfully made
under this title that has been distributed;

(B) the legal or beneficial owner of, or the person that controls, the
right to reproduce in a digital musical recording or analog musical
recording a musical work that has been embodied in a digital musical
recording or analog musical recording lawfully made under this title
that has been distributed;

(C) a featured recording artist who performs on a sound recording that
has been distributed; or

(D) any association or other organization-

(i) representing persons specified in subparagraph (A), (B), or (C), or

(ii) engaged in licensing rights in musical works to music users on
behalf of writers and publishers.

(8) To "manufacture" means to produce or assemble a product in the
United States. A "manufacturer" is a person who manufactures.

(9) A "music publisher" is a person that is authorized to license the
reproduction of a particular musical work in a sound recording.

(10) A "professional model product" is an audio recording device that is
designed, manufactured, marketed, and intended for use by recording
professionals in the ordinary course of a lawful business, in accordance
with such requirements as the Secretary of Commerce shall establish by
regulation.

(11) The term "serial copying" means the duplication in a digital format
of a copyrighted musical work or sound recording from a digital
reproduction of a digital musical recording. The term "digital
reproduction of a digital musical recording" does not include a digital
musical recording as distributed, by authority of the copyright owner,
for ultimate sale to consumers.

(12) The "transfer price" of a digital audio recording device or a
digital audio recording medium-

(A) is, subject to subparagraph (B)-

(i) in the case of an imported product, the actual entered value at
United States Customs (exclusive of any freight, insurance, and
applicable duty), and

(ii) in the case of a domestic product, the manufacturer's transfer
price (FOB the manufacturer, and exclusive of any direct sales taxes or
excise taxes incurred in connection with the sale); and

(B) shall, in a case in which the transferor and transferee are related
entities or within a single entity, not be less than a reasonable arms-
length price under the principles of the regulations adopted pursuant to
section 482 of the Internal Revenue Code of 1986, or any successor
provision to such section.

(13) A "writer" is the composer or lyricist of a particular musical
work.



Subchapter B-Copying Controls


Section 1002. Incorporation of copying controls

(a) Prohibition on Importation, Manufacture, and Distribution. No person
shall import, manufacture, or distribute any digital audio recording
device or digital audio interface device that does not conform to-

(1) the Serial Copy Management System;

(2) a system that has the same functional characteristics as the Serial
Copy Management System and requires that copyright and generation status
information be accurately sent, received, and acted upon between devices
using the system's method of serial copying regulation and devices using
the Serial Copy Management System; or

(3) any other system certified by the Secretary of Commerce as
prohibiting unauthorized serial copying.

(b) Development of Verification Procedure. The Secretary of Commerce
shall establish a procedure to verify, upon the petition of an
interested party, that a system meets the standards set forth in
subsection (a)(2).

(c) Prohibition on Circumvention of the System. No person shall import,
manufacture, or distribute any device, or offer or perform any service,
the primary purpose or effect of which is to avoid, bypass, remove,
deactivate, or otherwise circumvent any program or circuit which
implements, in whole or in part, a system described in subsection (a).

(d) Encoding of Information on Digital Musical Recordings.

(1) Prohibition on encoding inaccurate information. No person shall
encode a digital musical recording of a sound recording with inaccurate
information relating to the category code, copyright status, or
generation status of the source material for the recording.

(2) Encoding of copyright status not required. Nothing in this chapter
requires any person engaged in the importation or manufacture of digital
musical recordings to encode any such digital musical recording with
respect to its copyright status.

(e) Information Accompanying Transmission in Digital Format. Any person
who transmits or otherwise communicates to the public any sound
recording in digital format is not required under this chapter to
transmit or otherwise communicate the information relating to the
copyright status of the sound recording. Any such person who does
transmit or otherwise communicate such copyright status information
shall transmit or communicate such information accurately.



Subchapter C Royalty Payments


Section 1003. Obligation to make royalty payments

(a) Prohibition on Importation and Manufacture. No person shall import
into and distribute, or manufacture and distribute, any digital audio
recording device or digital audio recording medium unless such person
records the notice specified by this section and subsequently deposits
the statements of account and applicable royalty payments for such
device or medium specified in section 1004.

(b) Filing of Notice. The importer or manufacturer of any digital audio
recording device or digital audio recording medium, within a product
category or utilizing a technology with respect to which such
manufacturer or importer has not previously filed a notice under this
subsection, shall file with the Register of Copyrights a notice with
respect to such device or medium, in such form and content as the
Register shall prescribe by regulation.

(c) Filing of Quarterly and Annual Statements of Account.

(1) Generally. Any importer or manufacturer that distributes any digital
audio recording device or digital audio recording medium that it
manufactured or imported shall file with the Register of Copyrights, in
such form and content as the Register shall prescribe by -regulation,
such quarterly and annual statements of account with respect to such
distribution as the Register shall prescribe by regulation.

(2) Certification, verification, and confidentiality. Each such
statement shall be certified as accurate by an authorized officer or
principal of the importer or manufacturer. The Register shall issue
regulations to provide for the verification and audit of such statements
and to protect the confidentiality of the information contained in such
statements. Such regulations shall provide for the disclosure, in
confidence, of such statements to interested copyright parties.

(3) Royalty Payments. Each such statement shall be accompanied by the
royalty payments specified in section 1004.


Section 1004. Royalty payments [2]

(a) Digital Audio Recording Devices.

(1) Amount of payment. The royalty payment due under section 1003 for
each digital audio recording device imported into and distributed in the
United States, or manufactured and distributed in the United States,
shall be 2 percent of the transfer price. Only the first person to
manufacture and distribute or import and distribute such device shall be
required to pay the royalty with respect to such device.

(2) Calculation for devices distributed with other devices. With respect
to a digital audio recording device first distributed in combination
with one or more devices, either as a physically integrated unit or as
separate components, the royalty payment shall be calculated as follows:

(A) If the digital audio recording device and such other devices are
part of a physically integrated unit, the royalty payment shall be based
on the transfer price of the unit, but shall be reduced by any royalty
payment made on any digital audio recording device included within the
unit that was not first distributed in combination with the unit.

(B) If the digital audio recording device is not part of a physically
integrated unit and substantially similar devices have been distributed
separately at any time during the preceding 4 calendar quarters, the
royalty payment shall be based on the average transfer price of such
devices during those 4 quarters.

(C) If the digital audio recording device is not part of a physically
integrated unit and substantially similar devices have not been
distributed separately at any time during the preceding 4 calendar
quarters, the royalty payment shall be based on a constructed price
reflecting the proportional value of such device to the combination as a
whole.

(3) Limits on royalties. Notwithstanding paragraph (1) or (2), the
amount of the royalty payment for each digital audio recording device
shall not be less than $1 nor more than the royalty maximum. The royalty
maximum shall be $8 per device, except that in the case of a physically
integrated unit containing more than 1 digital audio recording device,
the royalty maximum for such unit shall be $12. During the 6th year
after the effective date of this chapter, and not more than once each
year thereafter, any interested copyright party may petition the
Librarian of Congress to increase the royalty maximum and, if more than
20 percent of the royalty payments are at the relevant royalty maximum,
the Librarian of Congress shall prospectively increase such royalty
maximum with the goal of having no more than 10 percent of such payments
at the new royalty maximum; however the amount of any such increase as a
percentage of the royalty maximum shall in no event exceed the
percentage increase in the Consumer Price Index during the period under
review.

(b) Digital Audio Recording Media. The royalty payment due under section
1003 for each digital audio recording medium imported into and
distributed in the United States, or manufactured and distributed in the
United States, shall be 3 percent of the transfer price. Only the first
person to manufacture and distribute or import and distribute such
medium shall be required to pay the royalty with respect to such medium.


Section 1005. Deposit of royalty payments and deduction of expenses [3]

The Register of Copyrights shall receive all royalty payments deposited
under this chapter and, after deducting the reasonable costs incurred by
the Copyright Office under this chapter, shall deposit the balance in
the Treasury of the United States as offsetting receipts, in such manner
as the Secretary of the Treasury directs. All funds held by the
Secretary of the Treasury shall be invested in interest-bearing United
States securities for later distribution with interest under section
1007. The Register may, in the Register's discretion, 4 years after the
close of any calendar year, close out the royalty payments account for
that calendar year, and may treat any funds remaining in such account
and any subsequent deposits that would otherwise be attributable to that
calendar year as attributable to the succeeding calendar year.


Section 1006. Entitlement to royalty payments [4]

(a) Interested Copyright Parties. The royalty payments deposited
pursuant to section 1005 shall, in accordance with the procedures
specified in section 1007, be distributed to any interested copyright
party-

(1) whose musical work or sound recording has been-

(A) embodied in a digital musical recording or an analog musical
recording lawfully made under this title that has been distributed, and

(B) distributed in the form of digital musical recordings or analog
musical recordings or disseminated to the public in transmissions,
during the period to which such payments pertain; and

(2) who has filed a claim under section 1007.

(b) Allocation of Royalty Payments to Groups. The royalty payments shall
be divided into 2 funds as follows:

(1) The sound recordings fund. 66 2/3 percent of the royalty payments
shall be allocated to the Sound Recordings Fund. 2 5/8 percent of the
royalty payments allocated to the Sound Recordings Fund shall be placed
in an escrow account managed by an independent administrator jointly
appointed by the interested copyright parties described in section
1001(7)(A) and the American Federation of Musicians (or any successor
entity) to be distributed to nonfeatured musicians (whether or not
members of the American Federation of Musicians or any successor entity)
who have performed on sound recordings distributed in the United States.
1 3/8 percent of the royalty payments allocated to the Sound Recordings
Fund shall be placed in an escrow account managed by an independent
administrator jointly appointed by the interested copyright parties
described in section 1001(7)(A) and the American Federation of
Television and Radio Artists (or any successor entity) to be distributed
to nonfeatured vocalists (whether or not members of the American
Federation of Television and Radio Artists or any successor entity) who
have performed on sound recordings distributed in the United States. 40
percent of the remaining royalty payments in the Sound Recordings Fund
shall be distributed to the interested copyright parties described in
section 1001(7)(C), and 60 percent of such remaining royalty payments
shall be distributed to the interested copyright parties described in
section 1001(7)(A).

(2) The musical works fund.

(A) 33 1/3 percent of the royalty payments shall be allocated to the
Musical Works Fund for distribution to interested copyright parties
described in section 1001(7)(B).

(B)(i) Music publishers shall be entitled to 50 percent of the royalty
payments allocated to the Musical Works Fund.

(ii) Writers shall be entitled to the other 50 percent of the royalty
payments allocated to the Musical Works Fund.

(c) Allocation of Royalty Payments Within Groups. If all interested
copyright parties within a group specified in subsection (b) do not
agree on a voluntary proposal for the distribution of the royalty
payments within each group, the Librarian of Congress shall convene a
copyright arbitration royalty panel which shall, pursuant to the
procedures specified under section 1007(c), allocate royalty payments
under this section based on the extent to which, during the relevant
period-

(1) for the Sound Recordings Fund, each sound recording was distributed
in the form of digital musical recordings or analog musical recordings;
and

(2) for the Musical Works Fund, each musical work was distributed in the
form of digital musical recordings or analog musical recordings or
disseminated to the public in transmissions.


Section 1007. Procedures for distributing royalty payments [5]

(a) Filing of Claims and Negotiations.

(1) Filing of claims. During the first 2 months of each calendar year
after calendar year 1992, every interested copyright party seeking to
receive royalty payments to which such party is entitled under section
1006 shall file with the Librarian of Congress a claim for payments
collected during the preceding year in such form and manner as the
Librarian of Congress shall prescribe by regulation.

(2) Negotiations. Notwithstanding any provision of the antitrust laws,
for purposes of this section interested copyright parties within each
group specified in section 1006(b) may agree among themselves to the
proportionate division of royalty payments, may lump their claims
together and file them jointly or as a single claim, or may designate a
common agent, including any organization described in section 1001(7)
(D), to negotiate or receive payment on their behalf; except that no
agreement under this subsection may modify the allocation of royalties
specified in section 1006(b).

(b) Distribution of Payments in the Absence of a Dispute. After the
period established for the filing of claims under subsection (a), in
each year after 1992, the Librarian of Congress shall determine whether
there exists a controversy concerning the distribution of royalty
payments under section 1006(c). If the Librarian of Congress determines
that no such controversy exists, the Librarian of Congress shall, within
30 days after such determination, authorize the distribution of the
royalty payments as set forth in the agreements regarding the
distribution of royalty payments entered into pursuant to subsection
(a), after deducting its reasonable administrative costs under this
section.

(c) Resolution of Disputes. If the Librarian of Congress finds the
existence of a controversy, the Librarian shall, pursuant to chapter 8
of this title, convene a copyright arbitration royalty panel to
determine the distribution of royalty payments. During the pendency of
such a proceeding, the Librarian of Congress shall withhold from
distribution an amount sufficient to satisfy all claims with respect to
which a controversy exists, but shall, to the extent feasible, authorize
the distribution of any amounts that are not in controversy. The
Librarian of Congress shall, before authorizing the distribution of such
royalty payments, deduct the reasonable administrative costs incurred by
the Librarian under this section.



Subchapter D - Prohibition on Certain Infringement Actions, Remedies,
and Arbitration


Section 1008. Prohibition on certain infringement actions

No action may be brought under this title alleging infringement of
copyright based on the manufacture, importation, or distribution of a
digital audio recording device, a digital audio recording medium, an
analog recording device, or an analog recording medium, or based on the
noncommercial use by a consumer of such a device or medium for making
digital musical recordings or analog musical recordings.

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