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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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(4) Rights not otherwise limited.-

(A) Except as expressly provided in this section, this section does not
limit or impair the exclusive right to perform a sound recording
publicly by means of a digital audio transmission under section 106(6).

(B) Nothing in this section annuls or limits in any way-

(i) the exclusive right to publicly perform a musical work, including by
means of a digital audio transmission, under section 106(4);

(ii) the exclusive rights in a sound recording or the musical work
embodied therein under sections 106(1), 106(2) and 106(3); or

(iii) any other rights under any other clause of section 106, or
remedies available under this title as such rights or remedies exist
either before or after the date of enactment of the Digital Performance
Right in Sound Recordings Act of 1995.

(C) Any limitations in this section on the exclusive right under section
106(6) apply only to the exclusive right under section 106(6) and not to
any other exclusive rights under section 106. Nothing in this section
shall be construed to annul, limit, impair or otherwise affect in any
way the ability of the owner of a copyright in a sound recording to
exercise the rights under sections 106(1), 106(2) and 106(3), or to
obtain the remedies available under this title pursuant to such rights,
as such rights and remedies exist either before or after the date of
enactment of the Digital Performance Right in Sound Recordings Act of
1995.

(e) Authority for Negotiations.-

(1) Notwithstanding any provision of the antitrust laws, in negotiating
statutory licenses in accordance with subsection (f), any copyright
owners of sound recordings and any entities performing sound recordings
affected by this section may negotiate and agree upon the royalty rates
and license terms and conditions for the performance of such sound
recordings and the proportionate division of fees paid among copyright
owners, and may designate common agents on a nonexclusive basis to
negotiate, agree to, pay, or receive payments.

(2) For licenses granted under section 106(6), other than statutory
licenses, such as for performances by interactive services or
performances that exceed the sound recording performance complement

(A) copyright owners of sound recordings affected by this section may
designate common agents to act on their behalf to grant licenses and
receive and remit royalty payments: *Provided*, That each copyright
owner shall establish the royalty rates and material license terms and
conditions unilaterally, that is, not in agreement, combination, or
concert with other copyright owners of sound recordings; and

(B) entities performing sound recordings affected by this section may
designate common agents to act on their behalf to obtain licenses and
collect and pay royalty fees: *Provided*, That each entity performing
sound recordings shall determine the royalty rates and material license
terms and conditions unilaterally, that is, not in agreement,
combination, or concert with other entities performing sound recordings.

(f) Licenses for Certain Nonexempt Transmissions. [47]

(1)(A) [48] No later than 30 days after the enactment of the Digital
Performance Right in Sound Recordings Act of 1995, 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
subscription transmissions by preexisting subscription services and
transmissions by preexisting satellite digital audio radio services
specified by subsection (d)(2) of this section during the period
beginning on the effective date of such Act and ending on December 31,
2001, or, if a copyright arbitration royalty panel is convened, ending
30 days after the Librarian issues and publishes in the Federal Register
an order adopting the determination of the copyright arbitration royalty
panel or an order setting the terms and rates (if the Librarian rejects
the panel's determination). Such terms and rates shall distinguish among
the different types of digital audio transmission services then in
operation. Any copyright owners of sound recordings, preexisting
subscription services, or preexisting satellite digital audio radio
services may submit to the Librarian of Congress licenses covering such
subscription transmissions with respect to such sound recordings. The
parties to each negotiation proceeding shall bear their own costs.

(B) In the absence of license agreements negotiated under subparagraph
(A), during the 60-day period commencing 6 months after publication of
the notice specified in subparagraph (A), 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
rates and terms which, subject to paragraph (3), shall be binding on all
copyright owners of sound recordings and entities performing sound
recordings affected by this paragraph. In establishing rates and terms
for preexisting subscription services and preexisting satellite digital
audio radio services, in addition to the objectives set forth in section
801(b)(1), the copyright arbitration royalty panel may consider the
rates and terms for comparable types of subscription digital audio
transmission services and comparable circumstances under voluntary
license agreements negotiated as provided in subparagraph (A).

(C)(i) Publication of a notice of the initiation of voluntary
negotiation proceedings as specified in subparagraph (A) shall be
repeated, in accordance with regulations that the Librarian of Congress
shall prescribe-

(I) no later than 30 days after a petition is filed by any copyright
owners of sound recordings, any preexisting subscription services, or
any preexisting satellite digital audio radio services indicating that a
new type of subscription digital audio transmission service on which
sound recordings are performed is or is about to become operational; and

(II) in the first week of January 2001, and at 5-year intervals
thereafter.

(ii) The procedures specified in subparagraph (B) 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-

(I) 6 months after publication of a notice of the initiation of
voluntary negotiation proceedings under subparagraph (A) pursuant to a
petition under clause (i)(I) of this subparagraph; or

(II) on July 1, 2001, and at 5-year intervals thereafter.

(iii) The procedures specified in subparagraph (B) shall be concluded in
accordance with section 802.

(2)(A) 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 public performances
of sound recordings by means of eligible nonsubscription transmissions
and transmissions by new subscription services specified by subsection
(d)(2) 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 and terms shall distinguish among the different
types of eligible nonsubscription transmission services and new
subscription services then in operation and shall include a minimum fee
for each such type of service. Any copyright owners of sound recordings
or any entities performing sound recordings affected by this paragraph
may submit to the Librarian of Congress licenses covering such eligible
nonsubscription transmissions and new subscription services with respect
to such sound recordings. The parties to each negotiation proceeding
shall bear their own costs.

(B) In the absence of license agreements negotiated under subparagraph
(A), during the 60-day period commencing 6 months after publication of
the notice specified in subparagraph (A), 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
rates and terms which, subject to paragraph (3), shall be binding on all
copyright owners of sound recordings and entities performing sound
recordings affected by this paragraph 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 and terms shall distinguish among the different types of eligible
nonsubscription transmission services then in operation and shall
include a minimum fee for each such type of service, such differences to
be based on criteria including, but not limited to, the quantity and
nature of the use of sound recordings and the degree to which use of the
service may substitute for or may promote the purchase of phonorecords
by consumers. In establishing rates and terms for transmissions by
eligible nonsubscription services and new subscription services, the
copyright arbitration royalty panel shall establish rates and terms that
most clearly represent the rates and terms 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-

(i) whether use of the service may substitute for or may promote the
sales of phonorecords or otherwise may interfere with or may enhance the
sound recording copyright owner's other streams of revenue from its
sound recordings; and

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

In establishing such rates and terms, the copyright arbitration royalty
panel may consider the rates and terms for comparable types of digital
audio transmission services and comparable circumstances under voluntary
license agreements negotiated under subparagraph (A).

(C)(i) Publication of a notice of the initiation of voluntary
negotiation proceedings as specified in subparagraph (A) shall be
repeated in accordance with regulations that the Librarian of Congress
shall prescribe-

(I) no later than 30 days after a petition is filed by any copyright
owners of sound recordings or any eligible nonsubscription service or
new subscription service indicating that a new type of eligible
nonsubscription service or new subscription service on which sound
recordings are performed is or is about to become operational; and

(II) 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 subparagraph
(A).

(ii) The procedures specified in subparagraph (B) 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-

(I) 6 months after publication of a notice of the initiation of
voluntary negotiation proceedings under subparagraph (A) pursuant to a
petition under clause (i)(I); or

(II) 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 subparagraph (A).

(iii) The procedures specified in subparagraph (B) shall be concluded in
accordance with section 802.

(3) License agreements voluntarily negotiated at any time between 1 or
more copyright owners of sound recordings and 1 or more entities
performing sound recordings shall be given effect in lieu of any
determination by a copyright arbitration royalty panel or decision by
the Librarian of Congress.

(4)(A) 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 entities performing sound
recordings.

(B) Any person who wishes to perform a sound recording publicly by means
of a transmission eligible for statutory licensing under this subsection
may do so without infringing the exclusive right of the copyright owner
of the sound recording-

(i) by complying with such notice requirements as the Librarian of
Congress shall prescribe by regulation and by paying royalty fees in
accordance with this subsection; or

(ii) if such royalty fees have not been set, by agreeing to pay such
royalty fees as shall be determined in accordance with this subsection.

(C) Any royalty payments in arrears shall be made on or before the
twentieth day of the month next succeeding the month in which the
royalty fees are set.

(g) Proceeds From Licensing of Transmissions.-

(1) Except in the case of a transmission licensed under a statutory
license in accordance with subsection (f) of this section-

(A) a featured recording artist who performs on a sound recording that
has been licensed for a transmission shall be entitled to receive
payments from the copyright owner of the sound recording in accordance
with the terms of the artist's contract; and

(B) a nonfeatured recording artist who performs on a sound recording
that has been licensed for a transmission shall be entitled to receive
payments from the copyright owner of the sound recording in accordance
with the terms of the nonfeatured recording artist's applicable contract
or other applicable agreement.

(2) The copyright owner of the exclusive right under section 106(6) of
this title to publicly perform a sound recording by means of a digital
audio transmission shall allocate to recording artists in the following
manner its receipts from the statutory licensing of transmission
performances of the sound recording in accordance with subsection (f) of
this section:

(A) 21/2 percent of the receipts shall be deposited in an escrow account
managed by an independent administrator jointly appointed by copyright
owners of sound recordings 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) who
have performed on sound recordings.

(B) 21/2 percent of the receipts shall be deposited in an escrow account
managed by an independent administrator jointly appointed by copyright
owners of sound recordings 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) who have performed on sound recordings.

(C) 45 percent of the receipts shall be allocated, on a per sound
recording basis, to the recording artist or artists featured on such
sound recording (or the persons conveying rights in the artists'
performance in the sound recordings).

(h) Licensing to Affiliates.-

(1) If the copyright owner of a sound recording licenses an affiliated
entity the right to publicly perform a sound recording by means of a
digital audio transmission under section 106(6), the copyright owner
shall make the licensed sound recording available under section 106(6)
on no less favorable terms and conditions to all bona fide entities that
offer similar services, except that, if there are material differences
in the scope of the requested license with respect to the type of
service, the particular sound recordings licensed, the frequency of use,
the number of subscribers served, or the duration, then the copyright
owner may establish different terms and conditions for such other
services.

(2) The limitation set forth in paragraph (1) of this subsection shall
not apply in the case where the copyright owner of a sound recording
licenses-

(A) an interactive service; or

(B) an entity to perform publicly up to 45 seconds of the sound
recording and the sole purpose of the performance is to promote the
distribution or performance of that sound recording.

(i) No Effect on Royalties for Underlying Works. License fees payable
for the public performance of sound recordings under section 106(6)
shall not be taken into account in any administrative, judicial, or
other governmental proceeding to set or adjust the royalties payable to
copyright owners of musical works for the public performance of their
works. It is the intent of Congress that royalties payable to copyright
owners of musical works for the public performance of their works shall
not be diminished in any respect as a result of the rights granted by
section 106(6).

(j) Definitions. As used in this section, the following terms have the
following meanings:

(l) An "affiliated entity" is an entity engaging in digital audio
transmissions covered by section 106(6), other than an interactive
service, in which the licensor has any direct or indirect partnership or
any ownership interest amounting to 5 percent or more of the outstanding
voting or non-voting stock.

(2) An "archived program" is a predetermined program that is available
repeatedly on the demand of the transmission recipient and that is
performed in the same order from the beginning, except that an archived
program shall not include a re-corded event or broadcast transmission
that makes no more than an incidental use of sound recordings, as long
as such recorded event or broadcast transmission does not contain an
entire sound recording or feature a particular sound recording.

(3) A "broadcast" transmission is a transmission made by a terrestrial
broadcast station licensed as such by the Federal Communications
Commission.

(4) A "continuous program" is a predetermined program that is
continuously performed in the same order and that is accessed at a point
in the program that is beyond the control of the transmission recipient.

(5) A "digital audio transmission" is a digital transmission as defined
in section 101, that embodies the transmission of a sound recording.
This term does not include the transmission of any audiovisual work.

(6) An "eligible nonsubscription transmission" is a noninteractive
nonsubscription digital audio transmission not exempt under subsection
(d)(1) that is made as part of a service that provides audio programming
consisting, in whole or in part, of performances of sound recordings,
including retransmissions of broadcast transmissions, if the primary
purpose of the service is to provide to the public such audio or other
entertainment programming, and the primary purpose of the service is not
to sell, advertise, or promote particular products or services other
than sound recordings, live concerts, or other music-related events.

(7) An "interactive service" is one that enables a member of the public
to receive a transmission of a program specially created for the
recipient, or on request, a transmission of a particular sound
recording, whether or not as part of a program, which is selected by or
on behalf of the recipient. The ability of individuals to request that
particular sound recordings be performed for reception by the public at
large, or in the case of a subscription service, by all subscribers of
the service, does not make a service interactive, if the programming on
each channel of the service does not substantially consist of sound
recordings that are performed within 1 hour of the request or at a time
designated by either the transmitting entity or the individual making
such request. If an entity offers both interactive and noninteractive
services (either concurrently or at different times), the noninteractive
component shall not be treated as part of an interactive service.

(8) A "new subscription service" is a service that performs sound
recordings by means of noninteractive subscription digital audio
transmissions and that is not a preexisting subscription service or a
preexisting satellite digital audio radio service.

(9) A "nonsubscription" transmission is any transmission that is not a
subscription transmission.

(10) A "preexisting satellite digital audio radio service" is a
subscription satellite digital audio radio service provided pursuant to
a satellite digital audio radio service license issued by the Federal
Communications Commission on or before July 31, 1998, and any renewal of
such license to the extent of the scope of the original license, and may
include a limited number of sample channels representative of the
subscription service that are made available on a nonsubscription basis
in order to promote the subscription service.

(11) A "preexisting subscription service" is a service that performs
sound recordings by means of noninteractive audio-only subscription
digital audio transmissions, which was in existence and was making such
transmissions to the public for a fee on or before July 31, 1998, and
may include a limited number of sample channels representative of the
subscription service that are made available on a nonsubscription basis
in order to promote the subscription service.

(12) A "retransmission" is a further transmission of an initial
transmission, and includes any further retransmission of the same
transmission. Except as provided in this section, a transmission
qualifies as a "retransmission" only if it is simultaneous with the
initial transmission. Nothing in this definition shall be construed to
exempt a transmission that fails to satisfy a separate element required
to qualify for an exemption under section 114(d)(1).

(13) The "sound recording performance complement" is the transmission
during any 3-hour period, on a particular channel used by a transmitting
entity, of no more than-

(A) 3 different selections of sound recordings from any one phonorecord
lawfully distributed for public performance or sale in the United
States, if no more than 2 such selections are transmitted consecutively;
or

(B) 4 different selections of sound recordings-

(i) by the same featured recording artist; or

(ii) from any set or compilation of phonorecords lawfully distributed
together as a unit for public performance or sale in the United States,
if no more than three such selections are transmitted consecutively:

*Provided*, That the transmission of selections in excess of the
numerical limits provided for in clauses (A) and (B) from multiple
phonorecords shall nonetheless qualify as a sound recording performance
complement if the programming of the multiple phonorecords was not
willfully intended to avoid the numerical limitations prescribed in such
clauses.

(14) A "subscription" transmission is a transmission that is controlled
and limited to particular recipients, and for which consideration is
required to be paid or otherwise given by or on behalf of the recipient
to receive the transmission or a package of transmissions including the
transmission.

(15) A "transmission" is either an initial transmission or a
retransmission.


Section 115. Scope of exclusive rights in nondramatic musical works:
Compulsory license for making and distributing phonorecords [49]

In the case of nondramatic musical works, the exclusive rights provided
by clauses (1) and (3) of section 106, to make and to distribute
phonorecords of such works, are subject to compulsory licensing under
the conditions specified by this section.

(a) Availability and Scope of Compulsory License.-

(1) When phonorecords of a nondramatic musical work have been
distributed to the public in the United States under the authority of
the copyright owner, any other person, including those who make
phonorecords or digital phonorecord deliveries, may, by complying with
the provisions of this section, obtain a compulsory license to make and
distribute phonorecords of the work. A person may obtain a compulsory
license only if his or her primary purpose in making phonorecords is to
distribute them to the public for private use, including by means of a
digital phonorecord delivery. A person may not obtain a compulsory
license for use of the work in the making of phonorecords duplicating a
sound recording fixed by another, unless:

(i) such sound recording was fixed lawfully; and

(ii) the making of the phonorecords was authorized by the owner of
copyright in the sound recording or, if the sound recording was fixed
before February 15, 1972, by any person who fixed the sound recording
pursuant to an express license from the owner of the copyright in the
musical work or pursuant to a valid compulsory license for use of such
work in a sound recording.

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