Copyright Law of the United States of America
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The US Copyright Office >> Copyright Law of the United States of America
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(2) A compulsory license includes the privilege of making a musical
arrangement of the work to the extent necessary to conform it to the
style or manner of interpretation of the performance involved, but the
arrangement shall not change the basic melody or fundamental character
of the work, and shall not be subject to protection as a derivative work
under this title, except with the express consent of the copyright
owner.
(b) Notice of Intention to Obtain Compulsory License.-
(1) Any person who wishes to obtain a compulsory license under this
section shall, before or within thirty days after making, and before
distributing any phonorecords of the work, serve notice of intention to
do so on the copyright owner. If the registration or other public
records of the Copyright Office do not identify the copyright owner and
include an address at which notice can be served, it shall be sufficient
to file the notice of intention in the Copyright Office. The notice
shall comply, in form, content, and manner of service, with requirements
that the Register of Copyrights shall prescribe by regulation.
(2) Failure to serve or file the notice required by clause (1)
forecloses the possibility of a compulsory license and, in the absence
of a negotiated license, renders the making and distribution of
phonorecords actionable as acts of infringement under section 501 and
fully subject to the remedies provided by sections 502 through 506 and
509.
(c) Royalty Payable Under Compulsory License. [50]-
(1) To be entitled to receive royalties under a compulsory license, the
copyright owner must be identified in the registration or other public
records of the Copyright Office. The owner is entitled to royalties for
phonorecords made and distributed after being so identified, but is not
entitled to recover for any phonorecords previously made and
distributed.
(2) Except as provided by clause (1), the royalty under a compulsory
license shall be payable for every phonorecord made and distributed in
accordance with the license. For this purpose, and other than as
provided in paragraph (3), a phonorecord is considered "distributed" if
the person exercising the compulsory license has voluntarily and
permanently parted with its possession. With respect to each work
embodied in the phonorecord, the royalty shall be either two and three-
fourths cents, or one-half of one cent per minute of playing time or
fraction thereof, whichever amount is larger. [51]
(3)(A) A compulsory license under this section includes the right of the
compulsory licensee to distribute or authorize the distribution of a
phonorecord of a nondramatic musical work by means of a digital
transmission which constitutes a digital phonorecord delivery,
regardless of whether the digital transmission is also a public
performance of the sound recording under section 106(6) of this title or
of any nondramatic musical work embodied therein under section 106(4) of
this title. For every digital phonorecord delivery by or under the
authority of the compulsory licensee-
(i) on or before December 31, 1997, the royalty payable by the
compulsory licensee shall be the royalty prescribed under paragraph (2)
and chapter 8 of this title; and
(ii) on or after January 1, 1998, the royalty payable by the compulsory
licensee shall be the royalty prescribed under subparagraphs (B) through
(F) and chapter 8 of this title.
(B) Notwithstanding any provision of the antitrust laws, any copyright
owners of nondramatic musical works and any persons entitled to obtain a
compulsory license under subsection (a)(1) may negotiate and agree upon
the terms and rates of royalty payments under this paragraph 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. Such authority to negotiate the terms and rates of
royalty payments includes, but is not limited to, the authority to
negotiate the year during which the royalty rates prescribed under
subparagraphs (B) through (F) and chapter 8 of this title shall next be
determined.
(C) During the period of June 30, 1996, through December 31, 1996, 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 subparagraph (A) during the period
beginning January 1, 1998, and ending on the effective date of any new
terms and rates established pursuant to subparagraph (C), (D) or (F), or
such other date (regarding digital phonorecord deliveries) as the
parties may agree. Such terms and rates shall distinguish between (i)
digital phonorecord deliveries where the reproduction or distribution of
a phonorecord is incidental to the transmission which constitutes the
digital phonorecord delivery, and (ii) digital phonorecord deliveries in
general. Any copyright owners of nondramatic musical works and any
persons entitled to obtain a compulsory license under subsection (a)(1)
may submit to the Librarian of Congress licenses covering such
activities. The parties to each negotiation proceeding shall bear their
own costs.
(D) In the absence of license agreements negotiated under subparagraphs
(B) and (C), 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 a schedule of
rates and terms which, subject to subparagraph (E), shall be binding on
all copyright owners of nondramatic musical works and persons entitled
to obtain a compulsory license under subsection (a)(1) during the period
beginning January 1, 1998, and ending on the effective date of any new
terms and rates established pursuant to subparagraph (C), (D) or (F), or
such other date (regarding digital phonorecord deliveries) as may be
determined pursuant to subparagraphs (B) and (C). Such terms and rates
shall distinguish between (i) digital phonorecord deliveries where the
reproduction or distribution of a phonorecord is incidental to the
transmission which constitutes the digital phonorecord delivery, and
(ii) digital phonorecord deliveries in general. In addition to the
objectives set forth in section 801(b)(1), in establishing such rates
and terms, the copyright arbitration royalty panel may consider rates
and terms under voluntary license agreements negotiated as provided in
subparagraphs (B) and (C). The royalty rates payable for a compulsory
license for a digital phonorecord delivery under this section shall be
established de novo and no precedential effect shall be given to the
amount of the royalty payable by a compulsory licensee for digital
phonorecord deliveries on or before December 31, 1997. The Librarian of
Congress shall also establish requirements by which copyright owners may
receive reasonable notice of the use of their works under this section,
and under which records of such use shall be kept and made available by
persons making digital phonorecord deliveries.
(E)(i) License agreements voluntarily negotiated at any time between one
or more copyright owners of nondramatic musical works and one or more
persons entitled to obtain a compulsory license under subsection (a)(1)
shall be given effect in lieu of any determination by the Librarian of
Congress. Subject to clause (ii), the royalty rates determined pursuant
to subparagraph (C), (D) or (F) shall be given effect in lieu of any
contrary royalty rates specified in a contract pursuant to which a
recording artist who is the author of a nondramatic musical work grants
a license under that person's exclusive rights in the musical work under
paragraphs (1) and (3) of section 106 or commits another person to grant
a license in that musical work under paragraphs (1) and (3) of section
106, to a person desiring to fix in a tangible medium of expression a
sound recording embodying the musical work.
(ii) The second sentence of clause (i) shall not apply to-
(I) a contract entered into on or before June 22, 1995 and not modified
thereafter for the purpose of reducing the royalty rates determined
pursuant to subparagraph (C), (D) or (F) or of increasing the number of
musical works within the scope of the contract covered by the reduced
rates, except if a contract entered into on or before June 22, 1995, is
modified thereafter for the purpose of increasing the number of musical
works within the scope of the contract, any contrary royalty rates
specified in the contract shall be given effect in lieu of royalty rates
determined pursuant to subparagraph (C), (D) or (F) for the number of
musical works within the scope of the contract as of June 22, 1995; and
(II) a contract entered into after the date that the sound recording is
fixed in a tangible medium of expression substantially in a form
intended for commercial release, if at the time the contract is entered
into, the recording artist retains the right to grant licenses as to the
musical work under paragraphs (1) and (3) of section 106.
(F) The procedures specified in subparagraphs (C) and (D) shall be
repeated and concluded, in accordance with regulations that the
Librarian of Congress shall prescribe, in each fifth calendar year after
1997, except to the extent that different years for the repeating and
concluding of such proceedings may be determined in accordance with
subparagraphs (B) and (C).
(G) Except as provided in section 1002(e) of this title, a digital
phonorecord delivery licensed under this paragraph shall be accompanied
by the information encoded in the sound recording, if any, by or under
the authority of the copyright owner of that sound recording, that
identifies the title of the sound recording, the featured recording
artist who performs on the sound recording, and related information,
including information concerning the underlying musical work and its
writer.
(H)(i) A digital phonorecord delivery of a sound recording is actionable
as an act of infringement under section 501, and is fully subject to the
remedies provided by sections 502 through 506 and section 509, unless-
(I) the digital phonorecord delivery has been authorized by the
copyright owner of the sound recording; and
(II) the owner of the copyright in the sound recording or the entity
making the digital phonorecord delivery has obtained a compulsory
license under this section or has otherwise been authorized by the
copyright owner of the musical work to distribute or authorize the
distribution, by means of a digital phonorecord delivery, of each
musical work embodied in the sound recording.
(ii) Any cause of action under this subparagraph shall be in addition to
those available to the owner of the copyright in the nondramatic musical
work under subsection (c)(6) and section 106(4) and the owner of the
copyright in the sound recording under section 106(6).
(I) The liability of the copyright owner of a sound recording for
infringement of the copyright in a nondramatic musical work embodied in
the sound recording shall be determined in accordance with applicable
law, except that the owner of a copyright in a sound recording shall not
be liable for a digital phonorecord delivery by a third party if the
owner of the copyright in the sound recording does not license the
distribution of a phonorecord of the nondramatic musical work.
(J) Nothing in section 1008 shall be construed to prevent the exercise
of the rights and remedies allowed by this paragraph, paragraph (6), and
chapter 5 in the event of a digital phonorecord delivery, except that no
action alleging infringement of copyright may be brought under this
title against a manufacturer, importer or distributor of a digital audio
recording device, a digital audio recording medium, an analog recording
device, or an analog recording medium, or against a consumer, based on
the actions described in such section.
(K) Nothing in this section annuls or limits
(i) the exclusive right to publicly perform a sound recording or the
musical work embodied therein, including by means of a digital
transmission, under sections 106(4) and 106(6),
(ii) except for compulsory licensing under the conditions specified by
this section, the exclusive rights to reproduce and distribute the sound
recording and the musical work embodied therein under sections 106(1)
and 106(3), including by means of a digital phonorecord delivery, or
(iii) any other rights under any other provision 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.
(L) The provisions of this section concerning digital phonorecord
deliveries shall not apply to any exempt transmissions or
retransmissions under section 114(d)(1). The exemptions created in
section 114(d)(1) do not expand or reduce the rights of copyright owners
under section 106(1) through (5) with respect to such transmissions and
retransmissions.
(4) A compulsory license under this section includes the right of the
maker of a phonorecord of a nondramatic musical work under subsection
(a)(1) to distribute or authorize distribution of such phonorecord by
rental, lease, or lending (or by acts or practices in the nature of
rental, lease, or lending). In addition to any royalty payable under
clause (2) and chapter 8 of this title, a royalty shall be payable by
the compulsory licensee for every act of distribution of a phonorecord
by or in the nature of rental, lease, or lending, by or under the
authority of the compulsory licensee. With respect to each nondramatic
musical work embodied in the phonorecord, the royalty shall be a
proportion of the revenue received by the compulsory licensee from every
such act of distribution of the phonorecord under this clause equal to
the proportion of the revenue received by the compulsory licensee from
distribution of the phonorecord under clause (2) that is payable by a
compulsory licensee under that clause and under chapter 8. The Register
of Copyrights shall issue regulations to carry out the purpose of this
clause.
(5) Royalty payments shall be made on or before the twentieth day of
each month and shall include all royalties for the month next preceding.
Each monthly payment shall be made under oath and shall comply with
requirements that the Register of Copyrights shall prescribe by
regulation. The Register shall also prescribe regulations under which
detailed cumulative annual statements of account, certified by a
certified public accountant, shall be filed for every compulsory license
under this section. The regulations covering both the monthly and the
annual statements of account shall prescribe the form, content, and
manner of certification with respect to the number of records made and
the number of records distributed.
(6) If the copyright owner does not receive the monthly payment and the
monthly and annual statements of account when due, the owner may give
written notice to the licensee that, unless the default is remedied
within thirty days from the date of the notice, the compulsory license
will be automatically terminated. Such termination renders either the
making or the distribution, or both, of all phonorecords for which the
royalty has not been paid, actionable as acts of infringement under
section 501 and fully subject to the remedies provided by sections 502
through 506 and 509.
(d) Definition. As used in this section, the following term has the
following meaning: A "digital phonorecord delivery" is each individual
delivery of a phonorecord by digital transmission of a sound recording
which results in a specifically identifiable reproduction by or for any
transmission recipient of a phonorecord of that sound recording,
regardless of whether the digital transmission is also a public
performance of the sound recording or any nondramatic musical work
embodied therein. A digital phonorecord delivery does not result from a
real-time, non-interactive subscription transmission of a sound
recording where no reproduction of the sound recording or the musical
work embodied therein is made from the inception of the transmission
through to its receipt by the transmission recipient in order to make
the sound recording audible.
Section 116. Negotiated licenses for public performances by means of coin-
operated phonorecord players [52]
(a) Applicability of Section. This section applies to any nondramatic
musical work embodied in a phonorecord.
(b) Negotiated Licenses.-
(1) Authority for negotiations. Any owners of copyright in works to
which this section applies and any operators of coin-operated
phonorecord players may negotiate and agree upon the terms and rates of
royalty payments for the performance of such works 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.
(2) Arbitration. Parties not subject to such a negotiation, may
determine, by arbitration in accordance with the provisions of chapter
8, the terms and rates and the division of fees described in paragraph
(1).
(c) License Agreements Superior to Copyright Arbitration Royalty Panel
Determinations. License agreements between one or more copyright owners
and one or more operators of coin-operated phonorecord players, which
are negotiated in accordance with subsection (b), shall be given effect
in lieu of any otherwise applicable determination by a copyright
arbitration royalty panel.
(d) Definitions. As used in this section, the following terms mean the
following:
(1) A "coin-operated phonorecord player" is a machine or device that-
(A) is employed solely for the performance of nondramatic musical works
by means of phonorecords upon being activated by the insertion of coins,
currency, tokens, or other monetary units or their equivalent;
(B) is located in an establishment making no direct or indirect charge
for admission;
(C) is accompanied by a list which is comprised of the titles of all the
musical works available for performance on it, and is affixed to the
phonorecord player or posted in the establishment in a prominent
position where it can be readily examined by the public; and
(D) affords a choice of works available for performance and permits the
choice to be made by the patrons of the establishment in which it is
located.
(2) An "operator" is any person who, alone or jointly with others-
(A) owns a coin-operated phonorecord player;
(B) has the power to make a coin-operated phonorecord player available
for placement in an establishment for purposes of public performance; or
(C) has the power to exercise primary control over the selection of the
musical works made available for public performance on a coin-operated
phonorecord player.
Section 117. Limitations on exclusive rights: Computer programs [53]
(a) Making of Additional Copy or Adaptation by Owner of Copy.
Notwithstanding the provisions of section 106, it is not an infringement
for the owner of a copy of a computer program to make or authorize the
making of another copy or adaptation of that computer program provided:
(1) that such a new copy or adaptation is created as an essential step
in the utilization of the computer program in conjunction with a machine
and that it is used in no other manner, or
(2) that such new copy or adaptation is for archival purposes only and
that all archival copies are destroyed in the event that continued
possession of the computer program should cease to be rightful.
(b) Lease, Sale, or Other Transfer of Additional Copy or Adaptation. Any
exact copies prepared in accordance with the provisions of this section
may be leased, sold, or otherwise transferred, along with the copy from
which such copies were prepared, only as part of the lease, sale, or
other transfer of all rights in the program. Adaptations so prepared may
be transferred only with the authorization of the copyright owner.
(c) Machine Maintenance or Repair. Notwithstanding the provisions of
section 106, it is not an infringement for the owner or lessee of a
machine to make or authorize the making of a copy of a computer program
if such copy is made solely by virtue of the activation of a machine
that lawfully contains an authorized copy of the computer program, for
purposes only of maintenance or repair of that machine, if-
(1) such new copy is used in no other manner and is destroyed
immediately after the maintenance or repair is completed; and
(2) with respect to any computer program or part thereof that is not
necessary for that machine to be activated, such program or part thereof
is not accessed or used other than to make such new copy by virtue of
the activation of the machine.
(d) Definitions. For purposes of this section-
(1) the "maintenance" of a machine is the servicing of the machine in
order to make it work in accordance with its original specifications and
any changes to those specifications authorized for that machine; and
(2) the "repair" of a machine is the restoring of the machine to the
state of working in accordance with its original specifications and any
changes to those specifications authorized for that machine.
Section 118. Scope of exclusive rights: Use of certain works in connection
with noncommercial broadcasting [54]
(a) The exclusive rights provided by section 106 shall, with respect to
the works specified by subsection (b) and the activities specified by
subsection (d), be subject to the conditions and limitations prescribed
by this section.
(b) Notwithstanding any provision of the antitrust laws, any owners of
copyright in published nondramatic musical works and published
pictorial, graphic, and sculptural works and any public broadcasting
entities, respectively, may negotiate and agree upon the terms and rates
of royalty payments and the proportionate division of fees paid among
various copyright owners, and may designate common agents to negotiate,
agree to, pay, or receive payments.
(1) Any owner of copyright in a work specified in this subsection or any
public broadcasting entity may submit to the Librarian of Congress
proposed licenses covering such activities with respect to such works.
The Librarian of Congress shall proceed on the basis of the proposals
submitted to it as well as any other relevant information. The Librarian
of Congress shall permit any interested party to submit information
relevant to such proceedings.
(2) License agreements voluntarily negotiated at any time between one or
more copyright owners and one or more public broadcasting entities shall
be given effect in lieu of any determination by the Librarian of
Congress: *Provided*, That copies of such agreements are filed in the
Copyright Office within thirty days of execution in accordance with
regulations that the Register of Copyrights shall prescribe.
(3) In the absence of license agreements negotiated under paragraph (2),
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 (2), shall be binding on all owners of copyright in works
specified by this subsection and public broadcasting entities,
regardless of whether such copyright owners have submitted proposals to
the Librarian of Congress. In establishing such rates and terms the
copyright arbitration royalty panel may consider the rates for
comparable circumstances under voluntary license agreements negotiated
as provided in paragraph (2). The Librarian of Congress shall also
establish requirements by which copyright owners may receive reasonable
notice of the use of their works under this section, and under which
records of such use shall be kept by public broadcasting entities.
(c) The initial procedure specified in subsection (b) shall be repeated
and concluded between June 30 and December 31, 1997, and at five-year
intervals thereafter, in accordance with regulations that the Librarian
of Congress shall prescribe.
(d) Subject to the terms of any voluntary license agreements that have
been negotiated as provided by subsection (b) (2), a public broadcasting
entity may, upon compliance with the provisions of this section,
including the rates and terms established by a copyright arbitration
royalty panel under subsection (b) (3), engage in the following
activities with respect to published nondramatic musical works and
published pictorial, graphic, and sculptural works:
(1) performance or display of a work by or in the course of a
transmission made by a noncommercial educational broadcast station
referred to in subsection (g); and
(2) production of a transmission program, reproduction of copies or
phonorecords of such a transmission program, and distribution of such
copies or phonorecords, where such production, reproduction, or
distribution is made by a nonprofit institution or organization solely
for the purpose of transmissions specified in paragraph (1); and
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