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Copyright Law of the United States of America

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

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(A) any such owner whose work was included in a secondary transmission
made by a cable system of a nonnetwork television program in whole or in
part beyond the local service area of the primary transmitter; and

(B) any such owner whose work was included in a secondary transmission
identified in a special statement of account deposited under clause (1)
(A); and

(C) any such owner whose work was included in nonnetwork programming
consisting exclusively of aural signals carried by a cable system in
whole or in part beyond the local service area of the primary
transmitter of such programs.

(4) The royalty fees thus deposited shall be distributed in accordance
with the following procedures:

(A) During the month of July in each year, every person claiming to be
entitled to statutory license fees for secondary transmissions shall
file a claim with the Librarian of Congress, in accordance with
requirements that the Librarian of Congress shall prescribe by
regulation. Notwithstanding any provisions of the antitrust laws, for
purposes of this clause any claimants may agree among themselves as to
the proportionate division of statutory licensing fees among them, may
lump their claims together and file them jointly or as a single claim,
or may designate a common agent to receive payment on their behalf.

(B) After the first day of August of each year, the Librarian of
Congress shall, upon the recommendation of the Register of Copyrights,
determine whether there exists a controversy concerning the distribution
of royalty fees. If the Librarian determines that no such controversy
exists, the Librarian shall, after deducting reasonable administrative
costs under this section, distribute such fees to the copyright owners
entitled to such fees, or to their designated agents. If the Librarian
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 fees.

(C) During the pendency of any proceeding under this subsection, the
Librarian of Congress shall withhold from distribution an amount
sufficient to satisfy all claims with respect to which a controversy
exists, but shall have discretion to proceed to distribute any amounts
that are not in controversy.

(e) Nonsimultaneous Secondary Transmissions by Cable Systems.-

(1) Notwithstanding those provisions of the second paragraph of
subsection (f) relating to nonsimultaneous secondary transmissions by a
cable system, any such transmissions are actionable as an act of
infringement under section 501, and are fully subject to the remedies
provided by sections 502 through 506 and sections 509 and 510, unless

(A) the program on the videotape is transmitted no more than one time to
the cable system's subscribers; and

(B) the copyrighted program, episode, or motion picture videotape,
including the commercials contained within such program, episode, or
picture, is transmitted without deletion or editing; and

(C) an owner or officer of the cable system

(i) prevents the duplication of the videotape while in the possession of
the system,

(ii) prevents unauthorized duplication while in the possession of the
facility making the videotape for the system if the system owns or
controls the facility, or takes reasonable precautions to prevent such
duplication if it does not own or control the facility,

(iii) takes adequate precautions to prevent duplication while the tape
is being transported, and

(iv) subject to clause (2), erases or destroys, or causes the erasure or
destruction of, the videotape; and

(D) within forty-five days after the end of each calendar quarter, an
owner or officer of the cable system executes an affidavit attesting

(i) to the steps and precautions taken to prevent duplication of the
videotape, and

(ii) subject to clause (2), to the erasure or destruction of all
videotapes made or used during such quarter; and

(E) such owner or officer places or causes each such affidavit, and
affidavits received pursuant to clause (2) (C), to be placed in a file,
open to public inspection, at such system's main office in the community
where the transmission is made or in the nearest community where such
system maintains an office; and

(F) the nonsimultaneous transmission is one that the cable system would
be authorized to transmit under the rules, regulations, and
authorizations of the Federal Communications Commission in effect at the
time of the nonsimultaneous transmission if the transmission had been
made simultaneously, except that this subclause shall not apply to
inadvertent or accidental transmissions.

(2) If a cable system transfers to any person a videotape of a program
nonsimultaneously transmitted by it, such transfer is actionable as an
act of infringement under section 501, and is fully subject to the
remedies provided by sections 502 through 506 and 509, except that,
pursuant to a written, nonprofit contract providing for the equitable
sharing of the costs of such videotape and its transfer, a videotape
nonsimultaneously transmitted by it, in accordance with clause (1), may
be transferred by one cable system in Alaska to another system in
Alaska, by one cable system in Hawaii permitted to make such
nonsimultaneous transmissions to another such cable system in Hawaii, or
by one cable system in Guam, the Northern Mariana Islands, or the Trust
Territory of the Pacific Islands, to another cable system in any of
those three territories, if-

(A) each such contract is available for public inspection in the offices
of the cable systems involved, and a copy of such contract is filed,
within thirty days after such contract is entered into, with the
Copyright Office (which Office shall make each such contract available
for public inspection); and

(B) the cable system to which the videotape is transferred complies with
clause (1) (A), (B), (C) (i), (iii), and (iv), and (D) through (F); and

(C) such system provides a copy of the affidavit required to be made in
accordance with clause (1) (D) to each cable system making a previous
nonsimultaneous transmission of the same videotape.

(3) This subsection shall not be construed to supersede the exclusivity
protection provisions of any existing agreement, or any such agreement
hereafter entered into, between a cable system and a television
broadcast station in the area in which the cable system is located, or a
network with which such station is affiliated.

(4) As used in this subsection, the term "videotape", and each of its
variant forms, means the reproduction of the images and sounds of a
program or programs broadcast by a television broadcast station licensed
by the Federal Communications Commission, regardless of the nature of
the material objects, such as tapes or films, in which the reproduction
is embodied.

(f) Definitions. As used in this section, the following terms and their
variant forms mean the following:

A "primary transmission" is a transmission made to the public by the
transmitting facility whose signals are being received and further
transmitted by the secondary transmission service, regardless of where
or when the performance or display was first transmitted.

A "secondary transmission" is the further transmitting of a primary
transmission simultaneously with the primary transmission, or
nonsimultaneously with the primary transmission if by a "cable system"
not located in whole or in part within the boundary of the forty-eight
contiguous States, Hawaii, or Puerto Rico: *Provided, however*, That a
nonsimultaneous further transmission by a cable system located in Hawaii
of a primary transmission shall be deemed to be a secondary transmission
if the carriage of the television broadcast signal comprising such
further transmission is permissible under the rules, regulations, or
authorizations of the Federal Communications Commission.

A "cable system" is a facility, located in any State, Territory, Trust
Territory, or Possession, that in whole or in part receives signals
transmitted or programs broadcast by one or more television broadcast
stations licensed by the Federal Communications Commission, and makes
secondary transmissions of such signals or programs by wires, cables,
microwave, or other communications channels to subscribing members of
the public who pay for such service. For purposes of determining the
royalty fee under subsection (d)(1), two or more cable systems in
contiguous communities under common ownership or control or operating
from one headend shall be considered as one system.

The "local service area of a primary transmitter", in the case of a
television broadcast station, comprises the area in which such station
is entitled to insist upon its signal being retransmitted by a cable
system pursuant to the rules, regulations, and authorizations of the
Federal Communications Commission in effect on April 15, 1976, or such
station's television market as defined in section 76.55(e) of title 47,
Code of Federal Regulations (as in effect on September 18, 1993), or any
modifications to such television market made, on or after September 18,
1993, pursuant to section 76.55(e) or 76.59 of title 47 of the Code of
Federal Regulations, or in the case of a television broadcast station
licensed by an appropriate governmental authority of Canada or Mexico,
the area in which it would be entitled to insist upon its signal being
retransmitted if it were a television broadcast station subject to such
rules, regulations, and authorizations. In the case of a low power
television station, as defined by the rules and regulations of the
Federal Communications Commission, the "local service area of a primary
transmitter" comprises the area within 35 miles of the transmitter site,
except that in the case of such a station located in a standard
metropolitan statistical area which has one of the 50 largest
populations of all standard metropolitan statistical areas (based on the
1980 decennial census of population taken by the Secretary of Commerce),
the number of miles shall be 20 miles. The "local service area of a
primary transmitter", in the case of a radio broadcast station,
comprises the primary service area of such station, pursuant to the
rules and regulations of the Federal Communications Commission.

A "distant signal equivalent" is the value assigned to the secondary
transmission of any nonnetwork television programming carried by a cable
system in whole or in part beyond the local service area of the primary
transmitter of such programming. It is computed by assigning a value of
one to each independent station and a value of one-quarter to each
network station and noncommercial educational station for the nonnetwork
programming so carried pursuant to the rules, regulations, and
authorizations of the Federal Communications Commission. The foregoing
values for independent, network, and noncommercial educational stations
are subject, however, to the following exceptions and limitations. Where
the rules and regulations of the Federal Communications Commission
require a cable system to omit the further transmission of a particular
program and such rules and regulations also permit the substitution of
another program embodying a performance or display of a work in place of
the omitted transmission, or where such rules and regulations in effect
on the date of enactment of this Act permit a cable system, at its
election, to effect such deletion and substitution of a nonlive program
or to carry additional programs not transmitted by primary transmitters
within whose local service area the cable system is located, no value
shall be assigned for the substituted or additional program; where the
rules, regulations, or authorizations of the Federal Communications
Commission in effect on the date of enactment of this Act permit a cable
system, at its election, to omit the further transmission of a
particular program and such rules, regulations, or authorizations also
permit the substitution of another program embodying a performance or
display of a work in place of the omitted transmission, the value
assigned for the substituted or additional program shall be, in the case
of a live program, the value of one full distant signal equivalent
multiplied by a fraction that has as its numerator the number of days in
the year in which such substitution occurs and as its denominator the
number of days in the year. In the case of a station carried pursuant to
the late-night or specialty programming rules of the Federal
Communications Commission, or a station carried on a part-time basis
where full-time carriage is not possible because the cable system lacks
the activated channel capacity to retransmit on a full-time basis all
signals which it is authorized to carry, the values for independent,
network, and noncommercial educational stations set forth above, as the
case may be, shall be multiplied by a fraction which is equal to the
ratio of the broadcast hours of such station carried by the cable system
to the total broadcast hours of the station.

A "network station" is a television broadcast station that is owned or
operated by, or affiliated with, one or more of the television networks
in the United States providing nationwide transmissions, and that
transmits a substantial part of the programming supplied by such
networks for a substantial part of that station's typical broadcast day.

An "independent station" is a commercial television broadcast station
other than a network station.

A "noncommercial educational station" is a television station that is a
noncommercial educational broadcast station as defined in section 397 of
title 47.


Section 112. Limitations on exclusive rights: Ephemeral recordings [44]

(a)(1) Notwithstanding the provisions of section 106, and except in the
case of a motion picture or other audiovisual work, it is not an
infringement of copyright for a transmitting organization entitled to
transmit to the public a performance or display of a work, under a
license, including a statutory license under section 114(f), or transfer
of the copyright or under the limitations on exclusive rights in sound
recordings specified by section 114 (a) or for a transmitting
organization that is a broadcast radio or television station licensed as
such by the Federal Communications Commission and that makes a broadcast
transmission of a performance of a sound recording in a digital format
on a nonsubscription basis, to make no more than one copy or phonorecord
of a particular transmission program embodying the performance or
display, if-

(A) the copy or phonorecord is retained and used solely by the
transmitting organization that made it, and no further copies or
phonorecords are reproduced from it; and

(B) the copy or phonorecord is used solely for the transmitting
organization's own transmissions within its local service area, or for
purposes of archival preservation or security; and

(C) unless preserved exclusively for archival purposes, the copy or
phonorecord is destroyed within six months from the date the
transmission program was first transmitted to the public.

(2) In a case in which a transmitting organization entitled to make a
copy or phonorecord under paragraph (1) in connection with the
transmission to the public of a performance or display of a work is
prevented from making such copy or phonorecord by reason of the
application by the copyright owner of technical measures that prevent
the reproduction of the work, the copyright owner shall make available
to the transmitting organization the necessary means for permitting the
making of such copy or phonorecord as permitted under that paragraph, if
it is technologically feasible and economically reasonable for the
copyright owner to do so. If the copyright owner fails to do so in a
timely manner in light of the transmitting organization's reasonable
business requirements, the transmitting organization shall not be liable
for a violation of section 1201(a)(1) of this title for engaging in such
activities as are necessary to make such copies or phonorecords as
permitted under paragraph (1) of this subsection.

(b) Notwithstanding the provisions of section 106, it is not an
infringement of copyright for a governmental body or other nonprofit
organization entitled to transmit a performance or display of a work,
under section 110(2) or under the limitations on exclusive rights in
sound recordings specified by section 114(a), to make no more than
thirty copies or phonorecords of a particular transmission program
embodying the performance or display, if

(1) no further copies or phonorecords are reproduced from the copies or
phonorecords made under this clause; and

(2) except for one copy or phonorecord that may be preserved exclusively
for archival purposes, the copies or phonorecords are destroyed within
seven years from the date the transmission program was first transmitted
to the public.

(c) Notwithstanding the provisions of section 106, it is not an
infringement of copyright for a governmental body or other nonprofit
organization to make for distribution no more than one copy or
phonorecord, for each transmitting organization specified in clause (2)
of this subsection, of a particular transmission program embodying a
performance of a nondramatic musical work of a religious nature, or of a
sound recording of such a musical work, if-

(1) there is no direct or indirect charge for making or distributing any
such copies or phonorecords; and

(2) none of such copies or phonorecords is used for any performance
other than a single transmission to the public by a transmitting
organization entitled to transmit to the public a performance of the
work under a license or transfer of the copyright; and

(3) except for one copy or phonorecord that may be preserved exclusively
for archival purposes, the copies or phonorecords are all destroyed
within one year from the date the transmission program was first
transmitted to the public.

(d) Notwithstanding the provisions of section 106, it is not an
infringement of copyright for a governmental body or other nonprofit
organization entitled to transmit a performance of a work under section
110(8) to make no more than ten copies or phonorecords embodying the
performance, or to permit the use of any such copy or phonorecord by any
governmental body or nonprofit organization entitled to transmit a
performance of a work under section 110(8), if-

(1) any such copy or phonorecord is retained and used solely by the
organization that made it, or by a governmental body or nonprofit
organization entitled to transmit a performance of a work under section
110(8), and no further copies or phonorecords are reproduced from it;
and

(2) any such copy or phonorecord is used solely for transmissions
authorized under section 110(8), or for purposes of archival
preservation or security; and

(3) the governmental body or nonprofit organization permitting any use
of any such copy or phonorecord by any governmental body or nonprofit
organization under this subsection does not make any charge for such
use.

(e) Statutory License. (1) A transmitting organization entitled to
transmit to the public a performance of a sound recording under the
limitation on exclusive rights specified by section 114(d)(1)(C)(iv) or
under a statutory license in accordance with section 114(f) is entitled
to a statutory license, under the conditions specified by this
subsection, to make no more than 1 phonorecord of the sound recording
(unless the terms and conditions of the statutory license allow for
more), if the following conditions are satisfied:

(A) The phonorecord is retained and used solely by the transmitting
organization that made it, and no further phonorecords are reproduced
from it.

(B) The phonorecord is used solely for the transmitting organization's
own transmissions originating in the United States under a statutory
license in accordance with section 114(f) or the limitation on exclusive
rights specified by section 114(d)(1)(C)(iv).

(C) Unless preserved exclusively for purposes of archival preservation,
the phonorecord is destroyed within 6 months from the date the sound
recording was first transmitted to the public using the phonorecord.

(D) Phonorecords of the sound recording have been distributed to the
public under the authority of the copyright owner or the copyright owner
authorizes the transmitting entity to transmit the sound recording, and
the transmitting entity makes the phonorecord under this subsection from
a phonorecord lawfully made and acquired under the authority of the
copyright owner.

(2) Notwithstanding any provision of the antitrust laws, any copyright
owners of sound recordings and any transmitting organizations entitled
to a statutory license under this subsection may negotiate and agree
upon royalty rates and license terms and conditions for making
phonorecords of such sound recordings under this section and the
proportionate division of fees paid among copyright owners, and may
designate common agents to negotiate, agree to, pay, or receive such
royalty payments.

(3) No later than 30 days after the date of the enactment of the Digital
Millennium Copyright Act, the Librarian of Congress shall cause notice
to be published in the Federal Register of the initiation of voluntary
negotiation proceedings for the purpose of determining reasonable terms
and rates of royalty payments for the activities specified by paragraph
(1) of this subsection during the period beginning on the date of the
enactment of such Act and ending on December 31, 2000, or such other
date as the parties may agree. Such rates shall include a minimum fee
for each type of service offered by transmitting organizations. Any
copyright owners of sound recordings or any transmitting organizations
entitled to a statutory license under this subsection may submit to the
Librarian of Congress licenses covering such activities with respect to
such sound recordings. The parties to each negotiation proceeding shall
bear their own costs.

(4) In the absence of license agreements negotiated under paragraph (2),
during the 60-day period commencing 6 months after publication of the
notice specified in paragraph (3), and upon the filing of a petition in
accordance with section 803(a)(1), the Librarian of Congress shall,
pursuant to chapter 8, convene a copyright arbitration royalty panel to
determine and publish in the Federal Register a schedule of reasonable
rates and terms which, subject to paragraph (5), shall be binding on all
copyright owners of sound recordings and transmitting organizations
entitled to a statutory license under this subsection during the period
beginning on the date of the enactment of the Digital Millennium
Copyright Act and ending on December 31, 2000, or such other date as the
parties may agree. Such rates shall include a minimum fee for each type
of service offered by transmitting organizations. The copyright
arbitration royalty panel shall establish rates that most clearly
represent the fees that would have been negotiated in the marketplace
between a willing buyer and a willing seller. In determining such rates
and terms, the copyright arbitration royalty panel shall base its
decision on economic, competitive, and programming information presented
by the parties, including-

(A) whether use of the service may substitute for or may promote the
sales of phonorecords or otherwise interferes with or enhances the
copyright owner's traditional streams of revenue; and

(B) the relative roles of the copyright owner and the transmitting
organization in the copyrighted work and the service made available to
the public with respect to relative creative contribution, technological
contribution, capital investment, cost, and risk.

In establishing such rates and terms, the copyright arbitration royalty
panel may consider the rates and terms under voluntary license
agreements negotiated as provided in paragraphs (2) and (3). The
Librarian of Congress shall also establish requirements by which
copyright owners may receive reasonable notice of the use of their sound
recordings under this section, and under which records of such use shall
be kept and made available by transmitting organizations entitled to
obtain a statutory license under this subsection.

(5) License agreements voluntarily negotiated at any time between 1 or
more copyright owners of sound recordings and 1 or more transmitting
organizations entitled to obtain a statutory license under this
subsection shall be given effect in lieu of any determination by a
copyright arbitration royalty panel or decision by the Librarian of
Congress.

(6) Publication of a notice of the initiation of voluntary negotiation
proceedings as specified in paragraph (3) shall be repeated, in
accordance with regulations that the Librarian of Congress shall
prescribe, in the first week of January 2000, and at 2-year intervals
thereafter, except to the extent that different years for the repeating
of such proceedings may be determined in accordance with paragraph (3).
The procedures specified in paragraph (4) shall be repeated, in
accordance with regulations that the Librarian of Congress shall
prescribe, upon filing of a petition in accordance with section 803(a)
(1), during a 60-day period commencing on July 1, 2000, and at 2-year
intervals thereafter, except to the extent that different years for the
repeating of such proceedings may be determined in accordance with
paragraph (3). The procedures specified in paragraph (4) shall be
concluded in accordance with section 802.

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