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transmitters of performances of sound recordings, the

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yearly blanket rate is 2 per centum of the gross receipts from subscribers or others who pay to receive the transmission during the applicable period, and the alternative prorated rate is a fraction of 2 per centum of such gross receipts, taking into account the proportion of time devoted to musical performances by the transmitter during the applicable period.

“ (4) For an operator of coin-operated phonorecord players, the yearly performance royalty payment shall

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be $1 for each phonorecord player.

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“ (5) For all other users not otherwise exempted, the blanket rate is $25 per year for each location at which copyrighted sound recordings are performed, and the alternative prorated rate shall be based on the

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number of separate performances of such works during the year and shall not exceed $5 per day of use.

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“(6) No royalty fees need be paid for a compulsory license for the public performance of copyrighted sound recordings by a radio broadcast station where its annual gross receipts from advertising sponsors were less than $25,000, by a television broadcast station where its annual gross receipts from advertising sponsors were less than $1,000,000, or by a background music service or

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other transmitter of performances of sound recordings

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where its annual gross receipts from subscribers or others who pay to receive the transmission were less than

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$10,000.

+ “(b) The annual royalty fees provided in subsection (a) 5 shall be applicable until such time as the royalty rate is 6 agreed upon by negotiation between the copyright owner and

7 the licensee, or their designated representatives: Provided, 8. That the annual royalty fees provided for in subsection (a) 9 shall be applicable for a period of not less than two years 10 following the date of enactment of the Performance Rights 11 Amendment of 1975. In the event that the parties or their 12 representatives are unable to agree upon a royalty rate pur13 suant to negotiation, the public performance of the sound 14 recording shall be subject to compulsory licensing at a royalty

rate and under terms which shall be set by an arbitration

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16 panel composed of three members of the American Arbitra

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tion Association, of which one member of the panel shall be 18 selected separately by each of the parties in disagreement, 19 and one member shall be selected jointly by the parties in

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"(c) The royalty fees collected pursuant to this section 22 shall be divided equally between the performers of the 23 sound recording and the copyright owners of the sound 24

recording. Neither a performer nor a copyright owner may 25 assign bis right to the royalties provided for in this section

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to the copyright owner or performer of the sound recording,

2 respectively.

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“ (d) As used in this section, the term

" (1) performers' means musicians, singers, conductors, actors, narrators, and others whose performance

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of a literary, musical, or dramatic work is embodied in a

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sound recording; and

“ (2) 'net receipts from advertising sponsors' means gross receipts from advertising sponsors less any commissions paid by a broadcast station to advertising agencies.”.

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(b) The analysis of such chapter is amended by add

13 ing at the end thereof the following new item:

“33. Compulsory licensing; royalties.".

94ru CONGRESS

18r SESSION

H R. 4965

IN THE HOUSE OF REPRESENTATIVES

March 14, 1975 Mr. Won Par introduced the following bill; which was referred to the Com

mittee on the Judiciary

A BILL For the amendment of the Copyright Law, title 17 of the

United States Code.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 3 That title 17 of the United States Code, entitled "Copy4 rights”, is hereby amended by adding new section 101 (f) 5 to read as follows:

6 "(f) For all the purposes of the provisions of this 7 title dealing with infringements of copyright, including crimi8 nal prosecution pursuant to section 104 of this title, a 9 person shall not infringe or have infringed the copyright in 10 any work protected under the copyright laws of the United

11 States who,

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“(1) for the purpose of transmission on a noncontiguous area cable television system, has made or shall cause to be made, or has transmitted or shall

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cause to be transmitted, a videotape of a television pro

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'(i) the videotape is transmitted no more than one time, without deletion of any material

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including commercials, on any such system; and

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(ii) an owner or officer of such facility erases

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or destroys, or causes the erasure or destruction of

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“(ii) subject to the provisions of subparagraph (2) of this subsection, on or before the end of each

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calendar quarter, an owner or officer of such system

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executes an affidavit attesting to the erasure or

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destruction of all such videotapes made or used dur

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ing the preceding quarter; and

“(iv) said owner or officer places or causes said affidavit, or the affidavit received pursuant to section

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101 (f) (2) (ii) of this title, to be placed in a file, open to public inspection, at such system's main office in the community where the transmission is

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