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(c) The privileges prescribed by subsections (a) and (b) do not, unless authorized by the copyright owner, extend to any person who has acquired possession of the copy or phonorecord from the copyright owner, by rental, lease, loan, or otherwise, without acquiring ownership of it. 8110. Limitations on exclusive rights: Exemption of certain per.

formances and displays Notwithstanding the provisions of section 106, the following are not infringements of copyright:

(1) performance or display of a work by instructors or pupils in the course of face-to-face teaching activities of a nonprofit educational institution, in a classroom or similar place devoted to instruction, unless, in the case of a motion picture or other audiovisual work, the performance, or the display of individual images, is given by means of a copy that was not lawfully made under this title and that the person responsible for the performance knew or had reason to believe was not lawfully made;

(2) performance of a nondramatic literary or musical work or of a sound recording, or display of a work, by or in the course of a transmission, if:

(A) the performance or display is a regular part of the systematic instructional activities of a governmental body or a nonprofit educational institution; and

(B) the performance or display is directly related and of material assistance to the teaching content of the transmission; and (C) the transmission is made primarily for:

(i) reception in classrooms or similar places normally devoted to instruction, or

(ii) reception by persons to whom the transmission is directed because their disabilities or other special circumstances prevent their attendance in classrooms or similar places normally devoted to instruction, or

(iii) reception by officers or employees of governmental bodies as a part of their official duties or employ

ment; (3) performance of a nondramatic literary or musical work or of a dramatico-musical work of a religious nature, or of a sound recording, or display of a work, in the course of services at a place of worship or other religious assembly;

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(c) SECONDARY TRANSMISSIONS BY CABLE SYSTEMS.-

(1) Subject to the provisions of subsections (a) and (b), but notwithstanding the provisions of clauses (2) and (4) of this subsection, the secondary transmission to the public by a cable system of a primary transmission made by a broadcast station licensed by the Federal Communications Commission and embodying a performance or display of a work is subject to compulsory licensing under the conditions specified by subsection (d), in the following cases :

(A) Where the signals comprising the primary transmission are exclusively aural; or

(B) Where the reference point of the cable system is within the local service area of the primary transmitter; or

(C) Where the reference point of the cable system is outside any United States television market, as defined in accordance

with subsection (f). (2) Subject to the provisions of subsections (a), (b), and (e) and of clauses (1) and (4) of this subsection, the secondary transmission to the public by a cable system of a primary transmission made by a broadcast station licensed by the Federal Communications Commission and embodying a performance or display of a work is subject to compulsory licensing under the conditions specified by subsection (d), in the following cases :

(A) Where the reference point of the cable system is within a United States television market, as defined in accordance with subsection (f), but the signal of the primary transmitter

(i) when added to the signals of those television broadcast stations whose local service areas are within that market, and of any other television broadcast stations whose signals are being regularly and lawfully used under this section by the cable system for secondary transmissions, does not exceed the number of signals of stations specified by clause (3) as comprising adequate television service for that market; and

(ii) is the signal of a television broadcast station of the type whose lack deprives the market of adequate service in accordance with the standards specified by clause (3), and is closer to the market than the signal of any other station of the same type, whose local service area is not within the

market; or (B) Where, notwithstanding the provisions of subclause (A),

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1 the cable system or its predecessor in title had, before January 1, 2 1971, in accordance with the applicable rules of the Federal 3 Communications Commission, made regular secondary trans4 missions of the transmissions of the primary transmitter or its 5 predecessor in title. And provided that such regular secondary 6 transmissions shall be exempt from the requirements of clauses 7 (4) (A) and (4) (B) of subsection (c). 8 (3) For the purposes of this subsection, "adequate television serv9 ice” within a United States television market is defined according to 10 the numerical rank of the market and the number and type of those 11 operating broadcast stations licensed by the Federal Communications 12 Commission whose local service areas are within that market. Con13 struction permits shall not be included in any computation for this 14 purpose. 15

(A) In markets 1 through 50, adequate television service com16 prises the network stations transmitting the programs of all the 17 television networks providing national transmissions, three inde18 pendent commercial stations, and one noncommercial educational 19 station. 20

(B) In markets 51 and below, adequate television service com21 prises the network stations transmitting the programs of all the

television networks providing national transmissions, two inde23 pendent commercial stations, and one noncommercial educational 24 station. 25 (4) Subject to the provisions of subsections (a) and (b) and of 26 clause (1) of this subsection, but notwithstanding the provisions of 27 clause (2) of this subsection, the secondary transmission to the public 28 by a cable system of a primary transmission made by a broadcast 29 station licensed by the Federal Communications Commission and 30 embodying a performance or display of a work is actionable as an 31 act of infringement under section 501, and is fully subject to the 32 remedies provided by sections 502 through 506, in the following 33 34

(A) Where the cable system, at least one month before the 35 date of the secondary transmission, has not recorded the notice 36 specified by subsection (d); or 37 (B) Where the reference point of the cable system falls within 38 a circle defined by a radius of thirty-five air miles, or within a 39

radius as subsequently determined by the Federal Communica40 tions Commission, after notice and public hearings, from the cen

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(c) SECONDARY TRANSMISSIONS BY CABLE SYSTEMS.

(1) Subject to the provisions of subsections (a) and (b), but notwithstanding the provisions of clauses (2) and (4) of this subsection, the secondary transmission to the public by a cable system of a primary transmission made by a broadcast station licensed by the Federal Communications Commission and embodying a performance or display of a work is subject to compulsory licensing under the conditions specified by subsection (d), in the following cases:

(A) Where the signals comprising the primary transmission are exclusively aural; or

(B) Where the reference point of the cable system is within the local service area of the primary transmitter; or

(C) Where the reference point of the cable system is outside any United States television market, as defined in accordance

with subsection (f). (2) Subject to the provisions of subsections (a), (b), and (e) and of clauses (1) and (4) of this subsection, the secondary transmission to the public by a cable system of a primary transmission made by a broadcast station licensed by the Federal Communications Commission and embodying a performance or display of a work is subject to compulsory licensing under the conditions specified by subsection (d), in the following cases :

(A) Where the reference point of the cable system is within a United States television market, as defined in accordance with subsection (f), but the signal of the primary transmitter

(i) when added to the signals of those television broadcast stations whose local service areas are within that market, and of any other television broadcast stations whose signals are being regularly and lawfully used under this section by the cable system for secondary transmissions, does not exceed the number of signals of stations specified by clause (3) as comprising adequate television service for that market; and

(ii) is the signal of a television broadcast station of the type whose lack deprives the market of adequate service in accordance with the standards specified by clause (3), and is closer to the market than the signal of any other station of the same type, whose local service area is not within the

market; or (B) Where, notwithstanding the provisions of subclause (A),

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1 licensing under subsection (c), the cable system shall, at least one 2 month before the date of the secondary transmission, record in the 3 Copyright Office, in accordance with requirements that the Register of 4 Copyrights shall prescribe by regulation, a notice including a state5 ment of the identity and address of the person who owns the secondary 6 transmission service or has power to exercise primary control over it, 7 together with the name and location of the primary transmitter. 8 (2) A cable system whose secondary transmissions have been subject 9 to compulsory licensing under subsection (c) shall, during the months 10 of January, April, July, and October, deposit with the Register of 11 Copyrights, in accordance with requirements that the Register shall 12 prescribe by regulation13

(A) A statement of account, covering the three months next 14 preceding, specifying the number of channels on which the cable 15 system made secondary transmissions to its subscribers, the names 16 and locations of all primary transmitters whose transmissions 17 were further transmitted by the cable system, the total number 18 of subscribers to the cable system, and the gross amounts paid to 19 the cable system by subscribers for the basic service of providing 20 secondary transmissions of primary broadcast transmitters; and 21

(B) A total royalty fee for the period covered by the statement, 22 computed on the basis of specified percentages of the gross receipts 23 from subscribers to the cable service during said period, as 24 follows: 25

(i) 1 percent of any gross receipts up to $40,000; 26

(ii) 2 percent of any gross receipts totalling more than 27

$40,000 but not more than $80,000; 28

(iii) 3 percent of any gross receipts totalling more than 29

$80,000, but not more than $120,000; 30

(iv) 4 percent of any gross receipts totalling more than 31

$120,000, but not more than $160,000; and 32

(v) 5 percent of any gross receipts totalling more than 33

$160,000. 34 The total royalty fee shall include an additional 1 percent of 35 the gross receipts paid by subscribers for the basic service of 36 providing secondary transmissions of primary broadcast trans37 mitter for each channel on which the cable system, under a com38 pulsory license, is permitted by the Federal Communications 39 Commission to increase the number of signals comprising ade40 quate service pursuant to clause (2) (B) of subsection (e).

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