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1 sounds, even though such sounds imitate or simulate those in the 2 copyrighted sound recording. 3 (c) This section does not limit or impair the exclusive right to per4 form publicly, by means of a phonorecord, any of the works specified 5. by section 106(a)(4). 6 8 113. Scope of exclusive rights in nondramatic musical works: 7

Compulsory license for making and distributing phono8

records 9 In the case of nondramatic musical works, the exclusive rights pro10 vided by clauses (1) and (3) of section 106(a), to make and to dis11 tribute phonorecords of such works, are subject to compulsory licensing 12 under the conditions specified by this section. 13 (a) AVAILABILITY AND SCOPE OF COMPULSORY LICENSE.—

(1) When phonorecords of a nondramatic musical work have 16 been distributed to the public under the authority of the copyright 16 owner, any other person may, by complying with the provisions 17 of this section, obtain a compulsory license to make and distribute 18 phonorecords of the work. A person may obtain a compulsory 19 license only if his primary purpose in making phonorecords is to 20 distribute them to the public for private use. 21

(2) A compulsory license includes the privilege of making a 22 musical arrangement of the work to the extent necessary to con23

form it to the style or manner of interpretation of the performance 24 involved, but the arrangement shall not change the basic melody 25 or fundamental character of the work, and shall not be subject to 26 protection as a derivative work under this title, except with the 27

express consent of the copyright owner. 28 (b) NOTICE OF INTENTION TO OBTAIN COMPULSORY LICENSE.— 29

(1) Any person who wishes to obtain a compulsory license un30

der this section shall, before or within thirty days after making, 31 and before distributing any phonorecords of the work, serve notice 32 of his intention to do so on the copyright owner. If the registra33

tion or other public records of the Copyright Office do not identify 34 the copyright owner and include an address at which notice can be 35 served on him, it shall be sufficient to file the notice of intention in 36

the Copyright Office. The notice shall comply, in form, content,

and manner of service, with requirements that the Register of 38 Copyrights shall prescribe by regulation. 39

(2) Failure to serve or file the notice as required in clause (1) 40 forecloses the possibility of a compulsory license and, in the ab

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sence of a negotiated license, renders the making and distribution
of phonorecords fully actionable as acts of infringement under

section 501.
(c) ROYALTY PAYABLE UNDER COMPULSORY LICENSE.—

(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 after he is so identified but he is not entitled to recover for any phonorecords previously made.

(2) Except as provided by clause (1), the royalty under a compulsory license shall be payable for every phonorecord made in accordance with the license. With respect to each work embodied in the phonorecord, the royalty shall be either three cents, or one cent per minute of playing time or fraction thereof, whichever amount is larger.

(3) Royalty payments shall be made quarterly, in January, April, July, and October, and shall include all royalties for the three months next preceding. Each quarterly payment shall be accompanied by a detailed statement of account which, upon written demand by the copyright owner, shall be certified as correct by a certified public accountant licensed to practice in the United States.

(4) If the copyright owner does not receive the quarterly payment and statement of account when due, he 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 the making and distribution of all phonorecords, for which the royalty had not been paid, fully actionable as acts of infringement

under section 501. 8114. Scope of exclusive rights in nondramatic musical works:

Performance by means of coin-operated machine The proprietor of an establishment in which a copyrighted nondramatic musical work is performed publicly by means of a coinoperated machine is not an infringer unless :

(1) alone or jointly with others he owns the machine or has power to exercise primary control over it; or

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(2) he refuses or fails, promptly after receipt by registered or certified mail of a request by the copyright owner, to make full disclosure of the identity of the person who owns the machine or

has power to exercise primary control over it. Ś CHAPTER 2-COPYRIGHT OWNERSHIP AND TRANSFER

Sec.
201. Ownership of copyright.
202. Ownership of copyright as distinct from ownership of material object.
203. Termination of transfers and licenses granted by the author.
204. Execution of transters of copyright ownership.

205. Recordation of transfers and other documents. 6 8 201. Ownership of copyright 7 (a) INITIAL OWNERSHIP.—Copyright in a work protected under 8 this title vests initially in the author or authors of the work. The 9 authors of a joint work are co-owners of copyright in the work. 10 (b) WORKS MADE FOR HIRE.-In the case of a work made for hire, 11 the employer or other person for whom the work was prepared is 12 considered the author for purposes of this title, and, unless the parties 13 have expressly agreed otherwise, owns all of the rights comprised in 14 the copyright 15 (c) CONTRIBUTIONS TO COLLECTIVE WORKS.- Copyright in each sop16 arate contribution to a collective work is distinct from copyright in 17 the collective work as a whole, and vests initially in the author of the 18 contribution. In the absence of an express transfer of the copyright 19 or of any rights under it, the owner of copyright in the collective

work is presumed to have acquired only the privilege of reproducing
and distributing the contribution as part of that particular collective
work, any revision of that collective work, and any later collective
work in the same series.
(d) TRANSFER OF OWNERSHIP.--

(1) The ownership of a copyright may be transferred in whole or in part by any means of conveyance or by operation of law, and may be bequeathed by will or pass as personal property by the applicable laws of intestate succession.

(2) Any of the exclusive rights comprised in a copyright, including any subdivision of any of the rights specified by section 106, may be transferred as provided by clause (1) and owned separately. The owner of any particular exclusive right is entitled, to the extent of that right, to all of the protection and remedies accorded to the copyright owner by this title.

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i § 202. Ownership of copyright as distinct from ownership of 2

material object 3 Ownership of a copyright, or of any of the exclusive rights under 4. a copyright, is distinct from ownership of any material object in which 5 the work is embodied. Transfer of ownership of any material object, 6 including the copy or phonorecord in which the work is first fixed, 7 does not of itself convey any exclusive rights in the copyrighted work 8 embodied in the object; nor, in the absence of an agreement, does trans9 fer of ownership of a copyright or of any exclusive rights under a copy10 right convey property rights in any material object. 11 8203. Termination of transfers and licenses granted by the 12 author

(a) CONDITIONS FOR TERMINATION.- In the case of any work other

than a work made for hire, the exclusive or nonexclusive grant of a 15 transfer or license of copyright or of any right under a copyright, 16 executed by the author on or after January 1, 1967, otherwise than 17 by will, is subject to termination under the following conditions:

(1) Termination of the grant may be effected by the author who executed it. If the author is dead, termination may be effected by his widow (or her widower) and children; the children of any dead child of the author succeed to the right of their parent for this purpose.

(2) Termination of the grant may be effected at any time during a period of five years beginning at the end of 35 years from the date of execution of the grant; or, if the grant covers the right of first publication of the work, the period begins at the end of 35 years from the date of first publication of the work or at the end of 40 years from the date of execution of the grant, whichever term ends earlier.

(3) The termination shall be effected by serving an advance notice in writing, signed by the author or, if he is dead, by all of those entitled to terminate his grant under clause (1) of this subsection, or by their duly authorized agents, upon the grantee or his successor in title.

(A) The notice shall state the effective date of the termination, which shall fall within the five-year period specified by clause (2) of this subsection, and the notice shall be served not less than two or more than ten years before that date. A copy of the notice shall be recorded in the Copyright Office before the effective date of termination, as a condition to its taking effect.

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(B) The notice shall comply, in form, content, and manner of service, with requirements that the Register of Copy

rights shall prescribe by regulation. (4) Termination of the grant may be effected notwithstanding any agreement to the contrary, including an agreement to make

a will or to make any future grant. (b) EFFECT OF TERMINATION.—Upon the effective date of termination, all rights under this title that were covered by the terminated grant revert to the author or, if he is dead, to all of those entitled to terminate his grant under clause (1) of subsection (a), but with the following limitations :

(1) A derivative work prepared under authority of the grant before its termination may continue to be utilized under the terms of the grant after its termination, but this privilege does not extend to the preparation after the termination of other derivative works based upon the copyrighted work covered by the terminated grant.

(2) A further grant, or agreement to make a further grant, of any right covered by a terminated grant is valid only if it is made after the effective date of the termination. As an exception, however, an agreement for such a further grant may be made between the persons effecting the termination and the original grantee or his successor in title, after the notice of termination has been served as provided by clause (3) of subsection (a).

(3) The future rights that will revert upon termination of the grant become vested on the date the notice of termination has been served as provided by clause (3) of subsection (a). Where the rights revert to the author's 'widow and one or more of his children or grandchildren, the widow is entitled to a one-half interest in the reverted rights. The interests of the author's children and grandchildren shall in all cases be divided among them on a per stirpes basis according to the number of his children represented.

(4) Termination of a grant under this section shall affect only those rights covered by the grant that arise under this title, and shall in no way affect rights arising under any other Federal, State, or foreign laws.

(5) Unless and until termination is effected under this section, the grant, if it does not provide otherwise, continues in effect for the term of copyright provided in this title.

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