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1 by any person under this title in a work in which copyright was sub2 sisting on the effective date of title III of this Act, or with respect to 3 any utilization of a copyrighted work other than in the design of a 4 useful article. 5 8 114. Scope of exclusive rights in sound recordings 6 (a) LIMITATIONS ON EXCLUSIVE RIGHT8.—The exclusive rights of 7 the owner of copyright in a sound recording are limited to the rights 8 specified by clauses (1), (3), and (4) of section 106. The exclusive 9 rights of the owner of copyright in a sound recording to reproduce and 10 perform it are limited to the rights to duplicate the sound recording 11 in the form of phonorecords or copies of audiovisual works that 12 directly or indirectly recapture the actual sounds fixed in the record13 ing, and to perform those actual sounds. These rights do not extend 14 to the making or duplication of another sound recording that is an 15 independent fixation of other sounds, or to the performance of other 16 sounds, even though such sounds imitate or simulate those in the copy17 righted sound recording. 18 (b) PERFORMANCE RIGHTS DISTINCT.—The exclusive right to per19 form publicly, by means of a phonorecord, a copyrighted literary, 20 musical, or dramatic work, and the exclusive right to perform publicly 21 a copyrighted sound recording, are separate and independent rights 22 under this title. 23 (c) COMPULSORY LICENSE FOR PUBLIC PERFORMANCE OF SOUND 24 RECORDINGA.— 25

(1) Subject to the provisions of sections 111 and 116, the public 26 performance of a sound recording is subject to compulsory licens27 ing under the conditions specified by this subsection, if phono28 records of it have been distributed to the public under the author29 ity of the copyright owner. 30 (2) Any person who wishes to obtain a complsory license under 31 this subsection shall fulfill the following requirements: 32

(A) He shall at least one month before the public perform33

ance and thereafter at intervals and in accordance with re34

quirements that the Register of Copyrights shall prescribe 35

by regulation, record in the Copyright Office a notice stating 36

his identity and address and declaring his intention to obtain 37

a compulsory license under this subsection; 38

(B) Deposit with the Register of Copyrights, at annual 39

intervals in accordance with requirements that the Register 40

of Copyrights shall prescribe by regulation, a statement of

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account and a total royalty fee for the period covered by the

statement, based on the royalty rates specified by clause (4).
(8) In the absence of a negotiated license, failure to record the
notice, file the statement, or deposit the royalty fee prescribed
by clause (2) renders the public performance of a sound record-
ing actionable as an act of infringement under section 501 and
fully subject to the remedies provided by sections 502 through
605, but not including the criminal remedies provided by sec-
tion 506.

(4) The annual royalty fees under this subsection may, at the
user's option, be computed on either a blanket or a prorated basis.
Although a negotiated license may be substituted for the compul-
sory license prescribed by this subsection, in no case shall the
negotiated rate amount to less than the applicable rate provided
by this clause. The following rates shall be applicable:

(A) For a radio or television broadcast station licensed by
the Federal Communications Commission, the blanket rate
is 2 percent of the net receipts from advertising sponsors dur-
ing the applicable period. The alternative prorated rate is
fraction of 2 percent of such net receipts, based on a calcu-
lation made in accordance with a standard formula that the
Register of Copyrights shall prescribe by regulation, taking
into account the amount of the station's commercial time
devoted to playing copyrighted sound recordings and whether
the station is a radio or television broadcaster.

(B) Subject to section 111, for background music services
and other transmitters of performances of sound recordings
the blanket rate is 2 percent of the gross receipts from sub-
scribers or others who pay to receive the transmission during
the applicable period. The alternative prorated rate is a frac-
tion of 2 percent of such gross receipts, based on a calculation
made in accordance with a standard formula that the Register
of Copyrights shall prescribe by regulation, taking into ac-
count the proportion of time devoted to musical performances
by the transmitter during the applicable period, and the ex-
tent to which the transmitter is also the owner of copyright
in the sound recordings performed during said period.

(C) For an operator of coin-operated phonorecord players,
as that term is defined by section 116, and for a cable system,

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as that term is defined by section 111, the compulsory licensing 2

rates shall be governed exclusively by those respective sec3

tions, and not by this subsection. 4

(D) For all other users not otherwise exempted, the blanket 5

rate is $25 per year for each location at which copyrighted 6

sound recordings are performed. The alternative prorated 7

rate shall be based on the number of separate performances 8

of such works during the year and, in accordance with a 9

standard formula that the Register of Copyrights shall pre10

scribe by regulation, shall not exceed $5 per day of use. 11 (d) EXEMPTION8.-In addition to users exempted from liability by 12 section 110 or subject to the provisions of section 111 or 116, any 13 person who publicly performs a copyrighted sound recording and who 14 would otherwise be subject to liability for such performance is ex15 empted from liability for infringement and from the compulsory 16 licensing requirements of this section, during the applicable annual 17 period, if18

(1) In the case of a broadcast station, its gross receipts from 19

advertising sponsors were less than $25,000; or 20

(2) In the case of a background music service or other transmit21

ter of performances of sound recordings, its gross receipts from 22 subscribers or others who pay to receive the transmission were less

than $10,000. 24 (e) DISTRIBUTION OF ROYALTIES. 25 (1) During the month of September in each year, every person 26 claiming to be entitled to compulsory license fees under this sec27

tion for performances during the preceding twelve-month period

shall file a claim with the Register of Copyrights, in accordance 29 with requirements that the Register shall prescribe by regulation. 30 Such claim shall include an agreement to accept as final, except as 31 provided in section 809 of this title, the determination of the Copy32 right Royalty Tribunal in any controversy concerning the distri33 bution of royalty fees deposited under subclause (B) of subsection 34 (c) (2) of this section to which the claimant is a party. Notwith35 standing any provisions of the antitrust laws (the Act of Oc36 tober 15, 1914, 38 Stat. 730, and any amendments of any such 37 laws), for purposes of this subsection any claimants may agree 38

among themselves as to the proportionate division of compulsory 39 licensing fees among them, may lump their claims together and

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file them jointly or as a single claim, or may designate a common agent to receive payment on their behalf.

(2) After the first day of October of each year, the Register of Copyrights shall determine whether there exists a controversy concerning the distribution of royalty fees deposited under subclause (B) of subsection (c) (2). If he determines that no such controversy exists, he shall, after deducting his reasonable administrative costs under this section, distribute such fees to the copyright owners and performers entitled, or to their designated agents. If he finds that such a controversy exists he shall certify to that fact and proceed to constitute a panel of the Copyright Royalty Tribunal in accordance with section 803. In such cases the reasonable administrative costs of the Register under this section shall be deducted prior to distribution of the royalty fee by the tribunal. (3) For the purposes of this section

(A) One half of all royalties to be distributed shall be paid to the copyright owners, and the other half shall be paid to the performers, of the sound recordings for which claims have been made under clause (1); and

(B) During the pendency of any proceeding under this section, the Register of Copyrights or the Copyright Royalty Tribunal shall withhold from distribution an amount sufficient to satisfy all claims with respect to which a controversy exists, but shall have discretion to proceed to distribute any

amounts that are not in controversy. (f) RELATION TO OTHER SECTIONS.— The public performance of sound recordings by means of secondary transmissions and coin-operated phonorecord players is governed by sections 111 and 116, respectively, and not by this section, except that there shall be an equal distribution of royalty fees for such public performances between copyright owners and performers as provided by subsection (e) (3) (A) of this section.

(8) DEFINITIONS.-As used in this section, the following terms and their variant forms mean the following:

(1) “Commercial time” is any transmission program, the time for which is paid for by a commercial sponsor, or any transmission program that is interrupted by a spot commercial announcement at intervals of less than fourteen and one-half minutes.

(2) “Performers” are musicians, singers, conductors, actors,

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narrators, and others whose performance of a literary, musical,

or dramatic work is embodied in a sound recording. $ 115. Scope of exclusive rights in nondramatic musical works:

Compulsory license for making and distributing phono

records 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 under the authority of the copyright owner, any other person 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 primary purpose in making phonorecords is to distribute them to the public for private use.

(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 intrpretation 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; DESIGNATION OF OWNER OF PERFORMANCE RIGHT.

(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 his 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 on him, 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) If the copyright owner so requests in writing not later than ten days after service or filing of the notice required by clause (1), the person exercising the compulsory license shall designate, on a label or container accompanying each phonorecord of the work

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