Platform Equality and Remedies for Rights Holders in Music Act of 2007 (S. 256): Section-by-Section Analysis

^Pr^ep^ar^{ed f}^o^r^M^e^m^b^ers^an^d^Com^mⁱ^t^t^ees^of^C^ong^r^e^ss

Introduc tion ..................................................................................................................................... 1
Backgr ound ..................................................................................................................................... 1
Section 1: Short Title.......................................................................................................................3
Section 2: Rate-Setting Standards...................................................................................................3
Section 112 Licenses.................................................................................................................3
Section 114 Licenses.................................................................................................................3
Content Protection.....................................................................................................................5
Defini ti on ..................................................................................................................... ............. 6
Technical and Conforming Amendments..................................................................................6
Section 3: Register of Copyrights Meeting and Report...................................................................7
Appendix. A Side-by-Side Comparison of the Current Statutory Language and the
Changes That Would Be Made to It by the Perform Act..............................................................8
Author Contact Information..........................................................................................................15

S. 256, the Platform Equality and Remedies for Rights Holders in Music Act of 2007 (the
Perform Act), introduced on January 11, 2007, by Senator Dianne Feinstein, seeks to promote
parity in the music licensing fees paid by entities involved in the digital performance and
distribution of copyrighted music. It would amend certain provisions of U.S. copyright law (17
U.S.C. §§ 112 and 114) to (1) subject all digital public performances of copyrighted sound
recordings to compulsory licensing under the same statutory provision and standards, regardless
of whether they are transmitted by preexisting or new, subscription, or non-subscription services;
(2) require services that transmit digital public performances of copyrighted sound recordings
under compulsory licenses to use technological measures to prevent the making of copies
embodying the transmission of the sound recordings; and (3) use the fair market value of the
copyrighted sound recordings in setting compulsory license fees for digital public performances
of them. This report provides a section-by-section analysis of the Perform Act and the changes it
would make to U.S. copyright law.

Among the creative works that U.S. copyright law protects are sound recordings (material or
digital embodiments of performances of musical works) and musical works (musical ¹
compositions consisting of musical notation and any accompanying words). Owners of
copyrighted sound recordings have exclusive rights to reproduce, adapt, or distribute their works, ²
or to perform them publicly by digital means. Normally, anyone who wants to exercise any of
the copyright owner’s exclusive rights must obtain the copyright owner’s permission to do so, ³
typically by negotiating a private licensing agreement. However, copyright law also provides
several types of “compulsory licenses” for sound recordings. These licenses allow third parties
who pay statutorily prescribed fees to use copyrighted sound recordings under certain conditions, ⁴
without having to negotiate private licensing agreements. Among other things, compulsory
licenses currently are available for “ephemeral recordings” (reproductions of sound recordings
made by webcasters or radio stations to facilitate the “streaming” of their content on the ⁵
Internet), as well as public performances of sound recordings by digital transmission services, ⁶
such as webcasters and satellite digital audio radio services.

¹¹⁷^U^.^S.C.^§^§¹⁰²⁽^a)(¹^{) & (7}⁾^.^Co^{le Po}^{rter’s so}ⁿ^g^“I’v^e^G^o^t^Yo^u^Uⁿ^d^e^{r M}^y^S^kⁱⁿ^{” i}^s^{a m}^u^si^cal^w^o^rk.^A^t^a^p^e^,^co^m^p^act
^dis^k^{, or}^M^P³^of^Fr^aⁿ^k^Si^na^tr^a^sⁱⁿ^gⁱ^ng^“^I^’^v^e^G^o^{t Y}^{ou U}ⁿ^de^r^My^Sk^in”^is^a^s^o^un^{d r}^e^c^o^r^dⁱⁿ^g^.
²¹⁷^U^.^S.C.^§^§¹⁰⁶⁽¹^)-(3⁾^{& (6}^).^T^h^{e o}^wⁿ^e^{rs o}^f^co^p^y^rig^h^te^d^m^u^{sical w}^o^rk^{s, in}^coⁿ^t^rast,^h^a^v^e^ex^clu^s^iv^{e rig}^h^{ts to}
^pub^lic^ly^pe^r^f^or^m^theⁱ^r^w^o^r^k^s^b^y^any^m^e^aⁿ^s^,^dig^ita^{l or}^no^n-^dⁱ^g^ita^{l. 1}⁷^U^.^S.C^.^§¹⁰⁶⁽⁴⁾^{. A}^s^de^fⁱ^ne^{d by}^the^C^o^py^rⁱ^g^h^t^A^c^t,
^p^u^b^lⁱ^c^p^e^rf^o^r^m^aⁿ^{ce i}ⁿ^cl^u^d^e^{s (1}⁾^perf^o^r^m^aⁿ^{ce at}^an^y^p^l^{ace o}^p^eⁿ^t^o^t^h^{e p}^u^b^lⁱ^c^o^r^w^h^{ere a “su}^b^s^t^aⁿ^tⁱ^a^lⁿ^u^m^b^e^{r o}^f^p^e^rsoⁿ^s
^outsⁱ^de^of^a^nor^m^a^{l c}ⁱ^r^c^le^of^a^f^a^mⁱ^l^y^a^{nd its}^s^o^cⁱ^a^l^a^c^q^ua^inta^nc^e^s^”^g^a^the^r^{, or}⁽²⁾^tr^aⁿ^s^m^is^sⁱ^{on or}^ot^h^e^r^c^o^m^m^unic^a^tion
^t^o^{a pu}^blⁱ^c^p^l^{ace o}^r^t^o^t^h^{e pu}^blⁱ^c^b^y^an^y^d^e^vi^c^e^o^r^p^r^o^{cess al}^l^o^wⁱⁿ^g^m^e^m^b^{ers o}^f^t^h^{e p}^u^b^lⁱ^c^t^o^recei^ve^t^h^{e p}^e^rf^o^r^m^aⁿ^ce
^a^s^a^g^r^{oup o}^rⁱⁿ^divⁱ^d^u^a^lly^{. 17 U}^.^S^.^C^.^§¹⁰^1.
³^Se^e^{CRS Rep}^o^{rt RL}³³⁶³¹^,^C^opy^rⁱ^ght^Lic^eⁿ^sⁱⁿ^gⁱⁿ^M^u^sⁱ^c^Dⁱ^s^t^rⁱ^b^u^tion^,^Re^pr^od^uc^tio^n,^an^{d Pu}^blic^P^e^r^f^or^m^anc^e^{, by}
^B^r^ia^{n T}^.^Y^e^h.
⁴^Id^.
⁵^{17 U}^.^S.C^.^§¹¹²⁽^a⁾⁽¹⁾^.^W^e^bc^a^s^ter^s^a^r^e^r^a^{dio s}^t^a^tio^ns^t^h^a^t^tr^aⁿ^s^m^{it the}ⁱ^r^br^oa^dc^a^s^ts^thr^o^ug^{h t}^h^e^Iⁿ^te^rⁿ^e^t^ins^t^e^a^d^of^{, or}
^{in a}^d^diti^{on t}^o^,^thr^oug^{h ra}^dio^w^a^ve^{s tra}ⁿ^sm^itte^{d by}^aⁱ^{r. “}^S^tre^a^mⁱ^ng^”^re^fe^{rs to the}^traⁿ^sm^ission^of^a^udio^{or v}ⁱ^de^o^c^onteⁿ^t
^vⁱ^a^the^W^e^{b in suc}^h^a^w^a^y^tha^t^the^c^onteⁿ^t^{is v}ⁱ^e^w^a^b^le^w^h^ile^{it is b}^e^ing^traⁿ^sm^itte^d.
⁶^{17 U}^.^S.C^.^§¹¹^4.

As new technologies have changed the ways in which copyrighted musical works and sound
recordings may be reproduced, distributed, and publicly performed, copyright owners,
broadcasters, and music vendors have become increasingly concerned that the various
compulsory licenses applicable to sound recordings result in different and inequitable treatment
for entities offering similar services. Webcasters object to paying compulsory license fees for
“ephemeral” reproductions and public performances when terrestrial (AM/FM) radio stations do ⁷
not. They also are concerned about paying more in compulsory license fees than existing satellite
radio services, whose license fees are separately established based upon factors that recognize ⁸
their infrastructure investments and seek to minimize disruption to their business models.
Copyright owners worry that satellite digital services are impermissibly “stretching” the
compulsory public performance license in order to distribute sound recordings because they have
developed portable devices that allow users not only to record musical programming but also to ⁹
save and re-sequence selected songs from such recordings. Satellite radio services, on the other
hand, note that they face more expenses in transmitting public performances than webcasters do ¹⁰
because they must purchase spectrum and launch satellites prior to transmitting music. They
argue that listeners recording from satellite radio are no different than listeners recording from
terrestrial radio and thus are covered by the Audio Home Recording Act (AHRA) (P.L. 102-¹¹
563). The Perform Act represents one legislative approach to resolving these concerns, at least
as they apply to digital public performances of sound recordings.

⁷^Par^ity^{, P}^l^atf^o^r^m^s^,^aⁿ^d^Pr^ote^c^tⁱ^o^n:^T^h^e^Fut^u^r^e^of^the^M^u^sⁱ^c^Iⁿ^d^u^s^t^r^y^{in the}^Dⁱ^git^a^{l R}^adi^{o Re}^v^o^l^u^ti^on^:^H^e^ar^ing^Be^for^e
^the^Seⁿ^a^te^C^o^m^m^.^oⁿ^the^J^udicⁱ^ar^y^[^h^ereiⁿ^a^f^t^er^Parity^{, Plat}^forms^]^,¹⁰⁹^th^Co^ng^.,²^nd^Se^s^s^.⁽²⁰⁰⁶⁾⁽^s^ta^t^e^m^e^{nt of}^N^.^Ma^r^k
^L^a^m^,^Ch^ai^r^m^an^an^d^CE^{O o}^f^Lⁱ^ve³⁶⁵^,^Iⁿ^c.^{) (no}^tⁱⁿ^{g t}^h^at^{a t}^e^rrest^ri^al^radⁱ^o^st^atⁱ^o^{n w}ⁱ^t^h^t^h^{e sam}^e^si^zed^au^dⁱ^en^{ce as}
^Lⁱ^v^e^{365 pa}^y^s^3.5%^of^its^r^e^v^e^nue^f^o^r^us^e^of^c^opy^rⁱ^g^h^te^{d m}^u^sⁱ^c^a^l^w^o^r^k^s^a^nd^not^hing^f^o^r^us^e^of^c^opy^rⁱ^g^h^te^{d s}^o^uⁿ^d
^r^e^c^o^r^d^ing^s^{, w}^h^ile^Lⁱ^v^e^{365 pa}^y^s^6.5%^of^its^r^e^v^e^nue^f^o^r^us^e^of^c^opy^rⁱ^g^h^te^{d m}^u^sⁱ^c^a^l^w^o^r^k^s^a^{nd 3}³^.4%^of^its^r^e^v^e^nue^f^o^r
^us^e^of^c^opy^rⁱ^g^h^te^{d s}^oun^{d r}^e^c^o^r^dⁱⁿ^g^s⁾^.^Se^e^Bonⁿ^e^v^ille^Int’l^Cor^p^{. v}^.^P^e^te^{rs, 3}⁴⁷^F.3^d⁴⁸^{5 (3}^{d Cir}^.²⁰^{03) (re}^je^c^ting
^w^e^bca^s^te^r^s^’^c^l^aⁱ^m^tha^t^the^y^s^{hould be}^e^x^e^m^{pt f}^r^o^m^payⁱ^ng^f^o^r^us^e^of^c^opy^rⁱ^g^h^te^{d s}^oun^{d r}^e^c^o^r^dⁱⁿ^g^s^,^lik^e^te^r^r^e^s^t^rⁱ^a^l^r^a^dio
^st^atⁱ^oⁿ^s^are).
⁸^Parity^{, P}^l^atf^o^rms⁽ⁿ^oting^t^h^a^t^sa^t^e^llite^dig^ita^{l a}^u^dio^ra^dio^se^rv^ic^e^s^pa^y^ro^y^a^ltie^{s on soun}^{d re}^c^o^r^d^ing^s^a^t^a^ra^te^of^5-7%
^of^r^e^v^e^nue^{, 4-}^6%^le^s^s^thaⁿ^the^r^a^t^e^pa^id^by^s^ubs^c^r^iptio^{n I}ⁿ^te^rⁿ^e^t^r^a^{dio s}^e^r^v^ic^e^s^a^{nd t}^h^e²²^-²^8%^le^s^s^thaⁿ^paⁱ^d^by^a
^w^e^bca^s^te^r^of^Lⁱ^v^e^365’^s^sⁱ^z^e⁾^.^Cf.¹⁷^U.^S.C.^§^§⁸⁰¹⁽^b⁾⁽¹^{)(C)-(D) (a}^p^p^l^yⁱⁿ^g^oⁿ^l^y^to¹⁷^U.S^.^C.^§¹¹⁴⁽^f⁾⁽¹^)(B),^o^r
^pre^e^x^isting^sa^te^llite^dig^ita^{l a}^udi^o^ra^{dio se}^rv^ic^e^s^{, a}^{nd sta}^tⁱⁿ^g^tha^t^t^h^e^c^o^m^pulsory^f^e^e^{is to be}^se^{t ba}^se^d^up^on
^c^ons^ide^r^a^tioⁿ^of⁽¹⁾^“^t^he^r^e^la^tiv^e^r^o^le^s^of^the^c^o^py^rⁱ^g^h^{t ow}^ne^r^s^a^{nd the}^c^opy^rⁱ^g^h^{t us}^e^rⁱⁿ^the^pr^o^duc^t^m^a^de^a^v^a^ila^ble^to
^t^h^{e pu}^b^lⁱ^c^wⁱ^t^h^resp^ect^t^o^rel^a^tⁱ^v^{e creat}ⁱ^v^{e co}ⁿ^t^ri^b^u^tⁱ^o^n,^t^ech^no^l^o^gi^cal^coⁿ^t^ri^b^u^tⁱ^o^n,^capⁱ^t^a^lⁱⁿ^vest^m^eⁿ^t^,^co^st^,^rⁱ^sk,^an^d
^c^ontrⁱ^buti^oⁿ^to^the^opeⁿⁱ^ng^of^ne^w^m^a^r^k^e^t^s”^a^{nd (}²⁾^“^m^inim^iz^[ⁱ^ng^]^aⁿ^y^dis^r^u^p^tiv^e^im^pa^c^t^{on t}^h^e^s^t^r^u^c^t^ur^e^of^the
^ind^u^s^t^rie^s^inv^o^lv^e^d^a^nd^on^g^e^ne^ra^lly^pre^v^a^iling^indus^try^pra^c^tic^e^s^”⁾^.
⁹^Parity^{, P}^l^atf^o^rms^(s^ta^te^m^e^{nt of}^E^d^g^a^{r Bronf}^m^a^{n, c}^h^aⁱ^rm^aⁿ^a^{nd CE}^O^of^W^a^rne^r^Musⁱ^c^G^r^{oup) (“}^Sa^t^e^llite^s^e^rv^ic^e^s^a^r^e
^now^of^fe^ring^ne^w^de^vⁱ^c^e^s,^w^h^ic^h^c^aⁿ^e^sse^ntia^lly^traⁿ^s^f^or^m^a^sa^te^llit^e^se^rv^ic^e^like^X^M^aⁿ^{d Sir}ⁱ^{us i}ⁿ^to^a^distrib^u^ti^on
^se^rv^ic^e^like^iT^une^s.”⁾^{. Ow}^ne^{rs o}^f^c^opy^rig^h^{ts in sou}ⁿ^d^re^c^o^rdⁱⁿ^g^s^ha^v^e^a^l^{so sue}^d^{, c}^l^aⁱ^mⁱ^ng^tha^t^sa^te^llit^e^dig^ita^{l a}^udi^o
^radⁱ^o^servi^{ces vi}^o^l^at^{e t}^h^ei^{r d}ⁱ^st^rⁱ^bu^tⁱ^oⁿ^ri^gh^t^s^wⁱ^t^h^t^h^{ese reco}^rdⁱⁿ^{g an}^d^pl^ay^b^a^c^k^d^e^vi^ces.^S^ee^A^tla^ntic^Re^c^o^rding^Cor^p^.
^v^.^X^M^Sa^te^llite^Ra^di^{o, I}ⁿ^c^.,²⁰⁰⁷^WL¹³⁶¹⁸^{6 (S.D}^{.N.Y. Ja}^n.¹⁹^{, 2}⁰⁰⁷^{). F}^o^{r m}^o^re^inf^o^rm^a^{tion, se}^e^{CRS Re}^port
^R^L³³⁵³^8,^Sate^lli^te^Dⁱ^git^a^{l Au}^{dio Radi}^{o Se}^r^v^ic^e^s^and^C^opy^rⁱ^g^h^{t La}^w^I^s^s^u^e^s^{, by}^B^r^ia^{n T}^.^Y^e^h.
¹⁰^Parity^{, P}^l^atf^o^rms^(sta^te^m^e^{nt of}^G^a^r^y^P^a^{rsons, c}^h^aⁱ^rm^aⁿ^of^the^bo^a^r^{d of}^X^M^Sa^te^llite^Ra^di^{o, I}ⁿ^c^.^{) (}^notiⁿ^g^aⁿ
^inv^e^st^m^e^{nt of}^ne^a^r^l^y^{$4 b}^illi^onⁱⁿ^sta^r^{t-up c}^o^sts).
¹¹^I^d^{. B}^u^{t s}^e^e^Pr^ote^c^tⁱ^{ng D}ⁱ^git^a^{l Br}^oadc^as^{t C}^o^nteⁿ^t:^H^e^arⁱⁿ^{g Be}^for^e^the^H^ous^e^C^o^m^m^.^oⁿ^t^h^e^J^u^dⁱ^cⁱ^ar^y^{, 10}⁹^th^Cong^.,
¹^st^Se^s^s^.⁽²⁰⁰⁵⁾⁽^s^ta^te^m^e^{nt of}^Mitc^{h B}^a^inw^o^{l, c}^h^aⁱ^r^m^aⁿ^a^{nd C}^E^O^o^f^the^R^e^c^o^r^d^ing^Iⁿ^dus^tr^y^A^s^s^o^cⁱ^a^tion^of^A^m^e^r^ic^a^,
^Inc^.^{) (“}^Sa^te^llite^ra^di^{o sh}^ou^ld^...^no^{t be}^a^b^le^t^o^re^ly^on^[^A^HR^A^]^to^c^r^e^a^t^e^aⁿ^unlic^eⁿ^se^d^dow^nloa^{d se}^rv^ic^e^.^”⁾^{. A}^H^R^A
^req^uⁱ^{res t}^h^atⁱ^m^p^o^r^t^e^{rs an}^d^m^aⁿ^u^f^act^u^r^{ers o}^f^cert^aⁱⁿ^dⁱ^gi^t^a^l^au^dⁱ^o^re^co^rdⁱⁿ^g^d^e^vi^{ces p}^a^y^{a p}^e^rcen^t^a^ge^o^f^each^d^e^vi^ce’s
^s^a^le^pr^ic^e^{to ow}^ne^r^s^of^c^opy^rⁱ^g^h^te^{d m}^u^sⁱ^c^a^l^w^o^r^k^s^.

Section 1 of the bill contains its short title, the Platform Equality and Remedies for Rights
Holders in Music Act of 2007, or the Perform Act of 2007. Bills with the same name and largely ^th¹²
identical content were introduced in both houses of the 109 Congress but not enacted.

The Digital Millennium Copyright Act (DMCA) of 1998 (P.L. 105-304) created a new
compulsory license for webcasters who temporarily reproduce copyrighted sound recordings
while publicly performing them (e.g., creating cache or buffer copies prior to or during ¹³
streaming). Under the current version of 17 U.S.C. § 112(e)(4), if the webcasters and copyright
owners fail to negotiate a fee for these “ephemeral recordings,” the U.S. Copyright Office’s
Copyright Royalty Judges are to determine a fee corresponding to that which willing buyers and
sellers would negotiate in the marketplace. The Perform Act amends 17 U.S.C. § 112(e)(4) by
replacing the willing buyer/seller standard with a standard based on “the fair market value of the
rights licensed.” The rationale for this change is unclear; even the sponsor of S. 256, Senator
Feinstein, notes that there is “some concern about what fair market value means, especially under ¹⁴
a government licensing scheme where there is not an actual competitive market.” However, one
possibility is that the use of the fair market value in setting compulsory license fees may parallel ¹⁵
its use in assessing actual damages for copyright infringement under 17 U.S.C. § 504(a)(1).
In amending the Copyright Act to grant owners of copyrighted sound recordings exclusive rights
in digital public performances of their works, the Digital Performance Right in Sound Recordings
Act (DPRSRA) of 1995 (P.L. 104-39) also created a compulsory license for digital public
performances of copyrighted sound recordings. The DMCA later modified the DPRSRA
compulsory license system by distinguishing between licenses for (1) preexisting subscription
services and satellite radio services, such as cable services, XM Satellite Radio, and SIRIUS

¹²^H.^R^.⁵³⁶¹^,¹⁰⁹^th^C^ong^.,^2d^Se^s^s^.⁽²⁰⁰⁶⁾⁽^s^po^ns^or^e^d^by^R^e^pr^e^s^eⁿ^ta^tiv^e^H^o^w^a^r^d^L^.^B^e^r^m^aⁿ⁾^a^{nd S.}²⁶^44,¹⁰⁹^th^C^ong^.,
^2d^Se^s^s^.⁽²⁰⁰⁶⁾⁽^s^po^ns^or^e^d^by^Se^na^tor^Dⁱ^aⁿ^ne^Fe^ins^t^eⁱⁿ⁾^.
¹³^{17 U}^.^S.C.^§¹¹^2(e⁾^{. A}^ltho^u^g^h^§¹^{12 l}ⁱ^c^eⁿ^se^{s a}^r^e^a^v^a^ila^ble^f^o^{r bot}^h^{(1) se}^rv^ic^e^s^traⁿ^s^m^itting^un^de^{r a}ⁿ^y^t^y^pe^o^f^lic^eⁿ^se
^or^tr^aⁿ^s^f^e^r^of^c^opy^rⁱ^g^h^{t a}^{nd (}²⁾^br^oa^dc^a^s^te^r^s^lic^eⁿ^s^e^{d by}^the^Fe^de^r^a^{l C}^o^m^m^unic^a^tions^C^o^m^m^is^sⁱ^{on tha}^t^m^a^k^e
^nons^ubs^c^r^ip^tioⁿ^dig^ita^{l tr}^aⁿ^s^m^is^sⁱ^ons^of^s^oun^{d r}^e^c^o^r^dⁱⁿ^g^s^{, dis}^c^us^sⁱ^ons^of^{§ 1}^{12 ty}^pic^a^lly^us^e^the^te^r^m^“w^e^b^c^a^s^te^r^”^a^s^a
^s^hor^tha^{nd f}^o^r^bot^{h g}^r^o^ups^{. T}^h^a^t^c^onv^eⁿ^ti^{on is}^f^o^ll^ow^e^d^{in t}^h^is^r^e^p^o^r^{t in r}^e^f^e^r^e^nc^e^{to §}¹¹^{2 lic}^eⁿ^s^e^s^.
¹⁴¹⁵^{2 C}^ONG^.^R^EC^{. S}³⁵^10-⁰¹⁽^A^pr^.^25,²⁰⁰⁶⁾^.
¹⁵^Ye^{t, in a}^sse^ssing^f^a^ir^m^a^r^k^e^t^v^a^lu^e^w^h^eⁿ^se^tting^a^c^t^ua^{l da}^m^a^g^e^{s, c}^o^{urts ha}^v^e^tre^a^t^e^d^f^a^ir^m^a^rke^t^v^a^lue^a^s^s^y^nony^m^ous
^w^{ith the}^ra^te^tha^t^“^a^w^illing^b^u^y^e^r^w^{ould ha}^v^e^...^[^p^aⁱ^d^]^a^w^illing^se^lle^r”^f^o^{r use}^of^the^w^o^rk^{. Christop}^he^r^P^h^e^l^{ps &}^th
^A^s^s^o^c^s^{., L}^L^C^v^.^G^a^llow^a^y^,^—^-^F.3d—^-^,²⁰⁰⁷^W^L⁴³⁸⁸⁰⁶^{, a}^t^*⁶⁽⁴^Cⁱ^r^.^Fe^{b. 1}²^,²⁰⁰⁷⁾^;^{see a}^l^so^Uⁿⁱ^t^e^d^S^t^at^{es v.}
^Bro^a^d^.^M^u^sic,^Iⁿ^c.^,³¹⁶^F^.³^d¹⁸⁹^,¹⁹⁴⁽²^d^Cir^.²⁰⁰³^{) (f}^ai^{r m}^a^r^k^{et v}^a^lu^{e is “th}^e^p^r^ice^th^{at a w}^illin^{g buyer an}^d^{a w}^illin^g
^se^lle^{r w}^{ould a}^g^re^e^{to in a}ⁿ^a^r^m^’^{s l}^e^ng^{th tra}ⁿ^sa^c^tio^n”^{). L}^a^te^{r litig}^a^{tion inv}^o^l^vⁱ^ng^the^pe^rf^ormⁱ^ng^rig^h^ts^org^a^niz^a^{tion B}^M^I
^est^a^b^lⁱ^s^h^e^d^t^h^at^f^aⁱ^r^market^val^u^{e can}^b^e^set^hⁱ^gh^{er t}^h^an^t^h^{e ret}^aⁱ^l^p^rⁱ^{ce i}ⁿ^o^r^d^e^{r t}^o^co^{ver t}^h^{e co}^st^s^o^f^p^r^o^{cesses an}^d
^s^e^r^v^ic^es^ne^c^e^s^s^a^r^y^{to br}^ing^t^h^e^pr^oduc^t^to^m^a^r^k^e^t^{. U}ⁿ^ite^{d Sta}^t^e^s^v^.^B^r^oa^d.^Musⁱ^c^,^Iⁿ^c^.,⁴²^{6 F.}^3d⁹¹^,^{97 (}²^d^Cⁱ^r^.²⁰⁰⁵⁾^.

Satellite Radio, and (2) transmissions by new subscription or satellite services and all other ¹⁶
eligible nonsubscription transmissions, such as webcasters. Currently, under DPRSRA as ¹⁷
amended by the DMCA, only the preexisting subscription or satellite services have their rates
set under standards that consider the services’ role in creating new markets and seek to minimize ¹⁸
disruption of their industry. New subscription or satellite services, as well as eligible
nonsubscription services, do not have their rates determined under such standards. Their rate
setting standards do not consider their role in creating new markets, or seek to minimize ¹⁹²⁰
disruption to their industries—and their rates thus tend to be higher.
The Perform Act eliminates the DMCA’s distinction between preexisting subscription or satellite
services and all other services by deleting 17 U.S.C. § 114(f)(1). Instead, it renumbers the current ²¹
§ 114(f)(2) as the new § 114(f)(1) and revises it to cover all “transmissions.” The Perform Act
further revises the new § 114(f)(1)(B) to use the same three factors in setting compulsory license
fees for all transmission services. Two of these factors—(1) the transmission’s impact on sound
recordings’ sales or the copyright owners’ revenue stream and (2) the creative, technological and
financial contributions of the copyright owner and transmission provider—are included in the
current § 114(f)(2)(B). However, the Perform Act adds a third factor that more directly addresses
copyright owners’ concerns that public performance licences are being used to avoid negotiating
distribution rights. This factor is “the degree to which reasonable recording affects the potential
market for sound recordings, and the additional fees that are required to be paid by services for
compensation.” The Perform Act also changes § 114(f) in the same way that it changes § 112(e),
by providing that compulsory license fees are to correspond to the fair market value of the works,
not the price that would be negotiated by willing buyers and sellers in the marketplace. Further,
the Perform Act revises the new § 114(f)(1)(C) to allow owners of copyrighted sound recordings
to seek re-calculation of the compulsory license fee whenever services digitally transmitting
public performances of copyrighted sound recordings introduce new technologies or devices.
To the degree that the Perform Act applies the same statutory provision and rate-setting factors to
all services that publicly perform copyrighted sound recordings by digital means, it does promote
parity. However, the Perform Act does not require absolute rate parity between all services
publicly performing sound recordings by digital means under § 114 compulsory licenses. Rather,
the Perform Act leaves language in the new § 114(f) that requires different transmitting entities to
pay different compulsory license fees:
^[R^]at^e^s^aⁿ^{d t}^e^r^m^s^sh^al^l^di^s^tⁱ^nguⁱ^s^h^a^m^oⁿ^{g t}^h^e^di^ff^ereⁿ^t^t^y^{pes of}^s^e^rvⁱ^c^e^s^t^h^eⁿⁱⁿ^operatⁱ^on
^an^{d s}^h^al^{l in}^cl^u^d^{e a}^mⁱⁿⁱ^m^u^m^{fee f}^o^{r each}^s^u^ch^t^y^{pe of}^s^e^r^v^ic^{e, s}^u^ch^di^ff^eren^ces^{to be bas}^e^d
^on^cri^t^e^ri^{a i}ⁿ^cl^u^dⁱⁿ^g^,^butⁿ^o^t^lⁱ^mⁱ^t^e^{d t}^o^{, t}^h^{e qu}^aⁿ^tⁱ^t^y^aⁿ^{d n}^a^t^u^{re of}^t^h^{e us}^{e of}^s^oun^d
^recordin^g^s^an^{d th}^{e deg}^r^{ee to}^w^h^ich^u^s^{e of}^th^{e s}^e^r^v^ice^m^a^y^s^u^bs^tit^u^t^{e f}^o^{r or m}^a^y^pro^m^{ote th}^e²²²³
^pu^rch^a^s^e^of^p^h^on^orecords^by^c^oⁿ^s^um^ers^.

¹⁶^Co^mp^a^r^e¹⁷^U.S.C.^§^§¹¹⁴⁽^f⁾⁽¹⁾^an^d^(f⁾⁽²^).
¹⁷^G^o^v^e^rⁿ^e^d^by^{17 U}^.^S.C^.^§¹¹⁴⁽^f⁾⁽¹⁾^.
¹⁸^Se^e¹⁷^U^.^S.C^.^§^§⁸⁰¹⁽^b)⁽¹⁾⁽^C⁾^-⁽^D⁾⁽^a^pplyⁱ^ng^only^{to s}^u^bs^e^c^{tion (}^f⁾⁽¹⁾^of¹⁷^U^.^S.C^.^§¹¹⁴⁾^.
¹⁹^{17 U}^.^S.C^.^§⁸⁰⁴⁽^b)⁽³⁾⁽^C⁾^.
²⁰^Se^e^s^upr^a^f^ootn^o^te^8.
²¹^Spe^cⁱ^fⁱ^c^a^l^l^y^{, the}^P^e^r^f^or^m^A^c^{t de}^le^te^s^f^r^o^m^the^ne^w^{17 U}^.^S.C^.^§¹¹⁴⁽^f⁾⁽¹⁾^la^ng^ua^g^e^de^s^c^rⁱ^bing^“^e^lig^ible
^nons^ubs^c^r^ip^tio^{n tr}^aⁿ^s^m^is^sⁱ^{on s}^e^r^v^ic^e^s^”^a^{nd “}^t^r^a^ns^mⁱ^s^sⁱ^ons^by^new^tr^aⁿ^s^m^issⁱ^{on s}^e^r^v^ic^e^s^s^p^e^cⁱ^fⁱ^e^d^by^s^ubs^e^c^tion
^(d⁾⁽²^).”
²²^U^nde^r^U^.^S^.^c^o^py^rⁱ^g^h^{t law}^,^a^pho^nor^e^c^o^r^d^is^“^aⁿ^y^m^a^te^rⁱ^a^l^obje^c^t^[^]^{in w}^h^ic^{h s}^o^un^ds^..^{. a}^r^e^fⁱ^x^e^{d by}^any^m^e^{thod ...}^a^nd
⁽^c^onti^nue^d.^..)

The Perform Act attempts to ensure that transmission services cannot rely upon compulsory
licenses for public performances to distribute copyrighted sound recordings. Currently, under 17
U.S.C. § 114(d)(2), transmission services are eligible for compulsory licenses only if (1) their ²⁴
transmissions are not part of an interactive service; (2) they do not automatically and
intentionally cause any device receiving the transmission to switch from one program channel to
another unless they are transmitting to a business entity; and (3) they accompany their
transmissions, whenever technically feasible, with any information encoded into the sound
recording by the copyright owner to identify its title, performer, or underlying musical work. The
Perform Act would add a fourth requirement to this listing, allowing a transmission service to rely
on the compulsory license only where it
^tak^e^sⁿ^o^af^fⁱ^r^m^ati^v^{e s}^t^eps^{to au}^th^{orize, en}^{able, caus}^e^{or in}^du^ce²⁵^t^h^e^m^a^kⁱ^ng^of^{a copy}^or
^ph^on^{orecord by}^{or f}^o^{r t}^h^{e t}^r^aⁿ^smⁱ^s^sⁱ^{on reci}^pi^en^t^aⁿ^d^u^s^e^s^t^echⁿ^o^l^o^gy^t^h^a^tⁱ^s^reas^on^abl^y
^av^{ailable, tec}^hⁿ^o^lo^gⁱ^call^y^f^eas^{ible, an}^{d econ}^o^mⁱ^call^y^reas^oⁿ^{able to prev}^en^t^th^e^m^a^kⁱ^ng^of
^copi^es^or^ph^on^orecords^em^bodyⁱⁿ^g^t^h^{e t}^r^an^smⁱ^s^sⁱ^oⁿⁱⁿ^w^hol^{e or i}ⁿ^part^,^ex^cept^f^o^r
^reas^on^{able recordin}^g^.
Language similar to the fourth requirement is currently in § 114(d)(2)(C)(vi), although the
Perform Act would remove this subsection. Presently, § 114(2)(C)(vi) applies only to new
subscription services or preexisting subscription services using different transmission
mechanisms than those they used on July 31, 1998; it does not reach the activities of preexisting
subscription or satellite services such as XM or SIRIUS so long as they do not change their ²⁶
transmission mechanisms. Moreover, the Perform Act’s proposed language for the new §
114(d)(2)(A)(iv) is broader in terms of what a transmitting service must do to qualify for a

^(...c^on^tin^ue^d)
^f^r^o^m^w^h^ic^{h the}^s^o^un^ds^c^aⁿ^be^pe^r^c^eⁱ^v^e^{d, r}^e^pr^od^uc^e^d^{, or}^ot^he^r^w^is^e^c^o^m^m^unic^a^t^e^d^{, e}^ithe^r^dir^e^c^tly^or^w^{ith the}^aⁱ^d^of^a
^machⁱⁿ^{e o}^r^d^e^vi^ce.^{” 1}⁷^U.^S^.^C^.^§¹⁰¹^.
²³^Cong^re^ssiona^l^pro^p^oⁿ^eⁿ^ts^of^the^P^e^rf^orm^A^c^{t t}^y^pic^a^l^l^y^sa^y^tha^t^it^w^{ill subje}^c^t^“^I^nte^r^ne^{t, c}^a^b^le^a^{nd s}^a^te^llite^{... t}^o^t^h^e
^sa^m^e^{rate stan}^d^a^rd^s,^{” n}^o^t^t^h^{e same rates.}^Parity^{, Pl}^atf^o^rms⁽^s^ta^tem^e^{nt of}^Se^na^tor^A^r^le^{n Spe}^c^t^e^r^{, C}^h^aⁱ^r^m^aⁿ^of^the^Se^na^te
^Ju^dⁱ^ci^ary^Co^mmⁱ^t^t^ee).
²⁴^T^h^{e mean}ⁱⁿ^{g o}^f^“iⁿ^t^eractⁱ^v^{e ser}^vⁱ^{ce” h}^a^{s b}^een^{a m}^a^t^t^e^{r o}^f^so^m^e^dⁱ^sp^u^t^e,^{as t}^h^{e sp}^on^so^rs^o^f^t^h^e^P^e^rf^o^r^m^Actⁿ^o^t^e.^Se^e
¹⁵²^C^ONG^.^R^EC^{. S}³⁵^10-^{01 (}^A^pr^.^25,²⁰⁰⁶⁾⁽^s^ta^te^m^e^{nt of}^Se^na^tor^F^e^ins^t^eⁱⁿ⁾^{. U}^nde^r^t^h^e^D^P^R^S^R^A^{, a}ⁿ^“ⁱ^nte^r^a^c^tiv^e
^servi^c^e^”^w^a^{s d}^e^fⁱⁿ^e^d^{as “o}ⁿ^e^t^h^at^en^ab^l^e^{s a m}^e^m^b^{er o}^f^t^h^{e p}^u^b^lⁱ^c^t^o^recei^ve,^oⁿ^req^u^e^st^,^a^t^r^an^smⁱ^ssi^oⁿ^o^f^{a p}^a^rtⁱ^c^u^l^ar
^soun^{d re}^c^o^r^d^ing^c^h^oseⁿ^by^{or o}ⁿ^be^ha^lf^of^tha^t^re^cⁱ^pieⁿ^t.”^T^h^e^DM^CA^a^m^e^nde^{d tha}^t^de^fⁱ^nitio^{n t}^o^“^o^ne^tha^t^eⁿ^a^b^le^{s a}
^me^m^b^{er o}^f^t^h^{e p}^u^b^lⁱ^c^t^o^recei^{ve a}^t^r^an^smⁱ^ssi^oⁿ^o^f^{a p}^r^o^g^ram^sp^eci^a^l^l^y^cre^a^t^e^d^f^o^{r t}^h^{e reci}^pⁱ^en^t^,^o^r^oⁿ^req^u^e^st^,^a
^tr^aⁿ^s^m^is^sⁱ^{on of}^a^pa^r^tic^ula^r^s^o^uⁿ^d^r^e^c^o^r^d^ing^,^w^h^e^t^he^r^orⁿ^o^{t a}^s^pa^r^t^of^a^pr^og^r^a^m^,^w^h^ic^{h is}^s^e^le^c^t^e^d^b^y^or^{on be}^ha^lf^of
^th^{e recip}ⁱ^en^t.”^M^aⁿ^y^p^e^o^p^l^e^h^a^v^e^o^b^j^ected^t^h^{at i}ⁿ^ch^an^gⁱⁿ^g^t^h^is^d^e^fⁱⁿ^itioⁿ^,^th^{e DM}^CA^rep^l^aced^{a “f}^ai^rly
^stra^ig^htf^o^r^w^a^r^{d a}^{nd o}^b^je^c^tiv^e^te^{st [}^w^ith^]^one^re^q^u^iriⁿ^g^a^c^o^m^p^le^x^s^ubje^c^tiv^e^aⁿ^a^l^y^s^is.”^Mu^si^{c L}ⁱ^cen^siⁿ^g^Iss^u^es:^th^st
^H^e^ar^{ing Be}^f^o^r^e^the^Se^na^te^C^o^m^m^{. on}^the^J^udicⁱ^ar^y^{, 1}⁰⁹^Cong^.,¹^Se^s^s^.⁽²⁰⁰⁵⁾⁽^s^ta^te^m^e^{nt of}^R^{ob G}^l^a^s^e^r^{, C}^h^aⁱ^r^m^aⁿ
^a^{nd C}^E^O^of^R^e^a^l^N^e^t^w^or^k^s^{, I}ⁿ^c^.⁾^.
²⁵^Itⁱ^s^un^cl^{ear w}^h^et^h^e^{r t}^h^e^P^e^rf^o^r^{m A}^c^t^’^{s u}^s^ag^{e o}^f^“iⁿ^d^u^{ce” h}^e^{re i}^sⁱⁿ^t^eⁿ^d^e^d^t^o^co^rresp^on^{d t}^o^t^h^{e m}^e^aⁿⁱⁿ^{g o}^f^“i^nd^u^ce”
^{in t}^h^e^Su^pr^e^m^e^C^our^t’^s^de^cⁱ^sⁱ^onⁱⁿ^MG^{M Stu}^dⁱ^o^s^,^Iⁿ^c^.^v^.^G^r^ok^s^t^e^r^,^L^t^{d., 5}⁴⁵^U^.^S.⁹¹^{3 (}²⁰⁰⁵⁾^,^w^h^ic^{h he}^ld^tha^t
^m^a^nuf^a^c^t^ure^r^s^of^de^vⁱ^ce^s^c^aⁿ^fa^c^e^s^e^c^onda^ry^lia^bility^f^o^{r c}^opy^rig^h^{t inf}^r^ing^e^m^e^{nt w}^h^eⁿ^they^“ⁱ^ndu^{ce” t}^h^ei^{r cu}^st^o^m^{ers t}^o
^u^s^{e th}^eir^p^r^o^d^u^c^{ts illeg}^a^lly^{. T}^h^{e v}^e^rb^“in^d^u^{ce” is u}^s^edⁱⁿ^t^h^{e cu}^rren^t^§¹¹⁴⁽^d⁾⁽²^)(C)(v^{i), w}^h^ich^p^r^e^d^{ates th}^e^Gro^k^ster
^de^cⁱ^sⁱ^on.
²⁶^N^e^w^de^vⁱ^c^e^s^pr^om^ote^d^by^{XM a}^nd^SI^R^I^U^S^a^llow^c^ons^um^e^r^s^{to r}^e^c^o^r^d^s^e^g^m^eⁿ^ts^of^tr^aⁿ^s^m^issⁱ^ons^a^{nd t}^h^eⁿ^s^a^v^e^only
^s^e^le^c^t^e^d^s^ong^s^,^or^r^e^-^s^e^que^nc^e^the^s^ong^s^f^r^om^theⁱ^r^br^oa^dc^a^s^{t or}^de^r^.^T^h^e^s^e^w^ould^not^f^a^{ll w}^{ithin the}^c^a^te^g^o^r^y^of
^“t^ran^s^mⁱ^s^sⁱ^oⁿ^m^e^dⁱ^u^m^{” b}^ecau^{se t}^h^ey^ar^{e d}^e^vi^ces^f^o^{r recei}^viⁿ^g^,ⁿ^o^t^sen^dⁱⁿ^g^,^con^t^en^t^.^Se^e¹⁷^U^.^S.C^.^{§ 101}⁽^d^e^f^ining
^“^t^ra^nsm^it”^{). Som}^e^c^r^itic^{s c}^onte^nd^tha^t^the^eⁿ^tir^e^P^e^rf^orm^A^c^{t is ta}^rge^t^e^d^a^t^{XM a}ⁿ^{d SIRIUS.}^Se^e^J^o^s^e^ph^P^a^le^nc^ha^r^,
^Se^nate^{Bill Targe}^t^{s Sat-}^R^a^d^io^Re^c^o^rdin^g^,^{21 T}^W^I^C^{E 1 (}²⁰⁰⁶⁾^.

compulsory license than is current law. Under the current § 114(d)(2)(C)(vi), a service cannot rely
on the compulsory license if it (1) causes or induces recipients to make recordings and (2) to the
degree its transmission technologies enable it to limit the making of recordings, fails to impose
such limits. Under the new § 114(d)(2)(A)(iv), a service cannot rely on the compulsory license if
it (1) authorizes or enables, as well as causes or induces, recipients to make copies or recordings
and (2) fails to use technologies that are reasonably available, technologically feasible, and
economically reasonable to prevent copying or recording by listeners. Thus, under the Perform
Act, a transmitting service must satisfy additional conditions to qualify for a § 114 compulsory
license, including potentially using digital rights management (DRM) technologies to limit the ²⁷
recipient’s ability to reproduce, distribute, or perform the transmitted music.
The Perform Act adds a new definition describing “reasonable recording” to 17 U.S.C. § 114(j).
Under the Perform Act, a recording cannot be reasonable where an entity, which is transmitting
digital public performances under a § 114 compulsory license for private, noncommercial use,
fails to employ technological measures incorporated into recording devices to prevent
• automated recording or playback of user-selected sound recordings, albums, or
artists;
• separation of a transmission into its component segments (e.g., songs) so as to permit
their playback in a different sequence; and
• redistribution, retransmission or exporting of a phonorecord containing any part of a
sound recording licensed under § 114 unless the destination device is a secure, in-home
network complying with these requirements.
The Perform Act does not, however, prohibit automated recording or playback of user-selected
programs, time periods or channels, or noninfringing, non-automated manual recording and
playback by consumers.
The Perform Act relies upon this definition of “reasonable recording” as one of the factors to be
considered in setting compulsory license fees under the new § 114(f)(1)(B) and in establishing
when a preexisting satellite digital audio radio service may rely on the statutory license under §

114(d).

The Perform Act removes references to § 114(f)(2)(C), which the Perform Act renumbers as §

114(f)(1)(C), from 17 U.S.C. § 803(b)(3)(B).

²⁷^S^o^m^e^o^b^s^{ervers h}^a^{ve n}^o^t^ed^t^h^at^t^hⁱ^s^req^uⁱ^r^em^en^t^o^f^t^h^{e P}^e^rf^o^r^m^Act^ma^y^f^o^rce^w^e^b^cast^e^r^s^t^o^st^{ream m}^u^si^{c t}^o^t^h^e
^pub^lic^usⁱⁿ^g^a^D^R^M-^eⁿ^a^b^le^d^digⁱ^ta^{l m}^u^sⁱ^c^f^ile^f^o^r^m^a^t^{, s}^u^c^h^a^s^Mic^r^os^of^t’^s^Wⁱ^ndow^s^Me^dia^A^{udio (}^W^M^A⁾^or^R^e^a^l^’^s
^R^e^a^l^A^{udio (}^R^A⁾^f^o^r^m^a^t^{. M}^P^3-^eⁿ^c^ode^{d a}^u^di^{o is}^no^t^DR^M-c^o^m^p^lia^{nt, a}ⁿ^{d t}^{hus w}^e^bc^a^s^te^rs^m^a^y^ne^e^d^{to sw}^itc^{h the}ⁱ^r
^In^t^e^rn^et^radⁱ^o^st^ream^{s t}^o^{a n}^oⁿ^-^MP³^f^o^rm^at^.^S^u^ch^{a ch}^an^{ge m}^a^y^re^q^uⁱ^{re add}ⁱ^tⁱ^oⁿ^a^l^lⁱ^cen^{se f}^{ees t}^o^b^e^p^aⁱ^d^t^o^t^h^{e o}^wⁿ^e^rs
^of^thos^e^pr^opr^ie^ta^r^y^m^u^sⁱ^c^f^ile^f^o^r^m^a^t^s^.^Se^e^Fr^e^d^v^oⁿ^L^ohm^a^nn,^Th^e^Se^as^on^of^Ba^{d L}^a^w^s^{, P}^a^r^t^3:^Baⁿⁿⁱ^{ng M}^P³
^Str^e^amⁱⁿ^g,^A^p^r^.^26,²⁰⁰⁶^,^av^ail^a^ble^oⁿ^M^a^r^c^h^12,²⁰⁰⁷^,^at^http^://^w^w^w^.^e^f^f^.^or^g^/^de^e^p^link^s^/^a^r^c^hiv^e^s^/⁰⁰⁴⁵⁸⁷^.p^hp.

Finally, the Perform Act requires that the Register of Copyrights convene a meeting between
owners of copyrighted sound recordings and transmitting services no later than 60 days after its
enactment to discuss the creation of a new category for “limited interactive services” and set
appropriate compulsory license fees for these services.

^{Current Statute}^Statut^{e as Amended by the}^Perform^Act
^{§ 112(e)(4)}^{§ 112(e)(4)}
^{The sched}^{ule of reasonable}^rates^{and terms dete}^rmined^{The sched}^{ule of reasonable}^rates^{and terms dete}^rmined
^{by the}^{Copyright Royalty Judges}^{shall, subject to}^{by the}^{Copyright Royalty Judges}^{shall, subject to}
^paragra^{ph (5), b}^e^{binding on all c}^{opyright owners}^of^paragra^{ph (5), b}^e^{binding on all c}^{opyright owners}^of
^{sound recordings a}^{nd tran}^{smitting organizations entitled}^{sound recordings a}^{nd tran}^{smitting organizations entitled}
^{to a statutory license}^{under t}^{his s}^{ubsection du}^{ring th}^{e 5-}^{to a statutory license}^{under t}^{his s}^{ubsection du}^{ring th}^{e 5-}
^{year pe}^{riod specified in paragra}^p^h^{(3), or suc}^{h other}^{year pe}^{riod specified in paragra}^p^h^{(3), or suc}^{h other}
^{period as the}^{parties may agr}^{ee. Such rates}^{shall include a}^{period as the}^{parties may agr}^{ee. Such rates}^{shall include a}
^{minimum fee}^{for each}^{type of}^ser^{vice offered by}^{minimum fee}^{for each}^{type of}^ser^{vice offered by}
^{transmitting organizations. The Copyright Royalty Judges}^{transmitting organizations. The Copyright Royalty Judges}
^{shall establish rates t}^{hat most cle}^{arly repre}^{sent t}^he^fees^{shall establish rates t}^{hat most cle}^{arly repre}^{sent t}^h^e^f^air
^{that would have been neg}^{otiated in the}^{market value of the rights licensed under this}
^{marketplace between a willi}^{ng buyer a}^{nd a}^willing^subsection^.

^seller^.

^{Current Statute}^Statut^{e as Amended by the}^Perform^Act
^{§ 114(d)(2)(A)}^{§ 114(d)(2)(A)}
^{[The per}^formance^{of a sound}^rec^{ording publicly by}^{[The per}^formance^{of a sound}^rec^{ording publicly by}
^{means of a s}^ubs^{cription digital audio transmission not}^{means of a s}^ubs^{cription digital audio transmission not}
^exempt^unde^{r pa}^ragrap^{h (1), an e}^{ligible nonsubscription}^exempt^unde^{r pa}^ragrap^{h (1), an e}^{ligible nonsubscription}
^{transmission, or a tran}^{smission n}^{ot exempt}^under^{transmission, or a tran}^{smission n}^{ot exempt}^under
^paragra^{ph (1) t}^{hat is made}^{by a}^p^{reexisting satellite digita}^l^paragra^{ph (1) t}^{hat is made}^{by a}^p^{reexisting satellite digita}^l
^{audio radio service shall be subje}^{ct to statutory licensing,}^{audio radio service shall be subje}^{ct to statutory licensing,}
^{in accordance with s}^u^b^{section (f) if—]}^{in accordance with s}^u^b^{section (f) if—]}
^{(i) the transmission is not pa}^{rt of}^{an interactive se}^rvice;^{(i) the transmission is not pa}^{rt of}^{an interactive se}^rvice;
^{(ii) except in the cas}^{e of a tra}^nsm^{ission to a business}^{(ii) except in the cas}^{e of a tra}^nsm^{ission to a business}
^{establishment, th}^{e tra}^{nsmitting e}^{ntity does not}^{establishment, th}^{e tra}^{nsmitting e}^{ntity does not}
^{automatically and intentionally cause an}^{y device receiving}^{automatically and intentionally cause an}^{y device receiving}
^{the tra}^{nsmission to switch from}^{one program}^chan^{nel to}^{the tra}^{nsmission to switch from}^{one program}^chan^{nel to}
^another;^an^d^another;^an^d
⁽ⁱⁱ^{i) except as}^{provided in section 10}^{02(e) the}⁽ⁱⁱ^{i) except as}^{provided in section 10}^{02(e) the}
^{transmission of the}^sound^{recording is accompanied, if}^{transmission of the}^sound^{recording is accompanied, if}
^{technically feasible, by t}^{he inform}^{ation encoded in that}^{technically feasible, by t}^{he inform}^{ation encoded in that}
^{sound recording, if any, b}^y^{or u}ⁿ^{der the a}^{uthority of the}^{sound recording, if any, b}^y^{or u}ⁿ^{der the a}^{uthority of the}
^{copyright owner}^{of that so}^{und re}^{cording, that identifies}^{copyright owner}^{of that so}^{und re}^{cording, that identifies}
^{the title of the sou}^{nd recording, t}^{he feat}^{ured recording}^{the title of the sou}^{nd recording, t}^{he feat}^{ured recording}
^{artist who per}^{forms on t}^{he sou}ⁿ^d^{recording, and related}^{artist who per}^{forms on t}^{he sou}ⁿ^d^{recording, and related}
^{information, including information concer}^{ning t}^he^{information, including information concer}^{ning t}^he
^{underlying m}^{usical work and its}^writer;^{underlying m}^{usical work and its}^writer;^and
^{(iv) the transmitting ent}^ity^t^{akes no affir}^mative
^{steps to authorize, enable, cause or indu}^{ce the}
^{making of}^{a c}^{opy o}^r^ph^ono^recor^{d by o}^r^f^{or the}
^{transmission recipient and}^us^{es technology that is}
^{reasonably available, technologically feasible, and}
^economi^{cally reasonable to p}^{revent the making}
^{of c}^{opies or}^ph^ono^reco^{rds e}^{mbodying the}
^{transmission in w}^{hole or in}^p^{art, except for}
^{reasonable rec}^ordin^{g as defi}^{ned in this}
^subsection;

^{Current Statute}^Statut^{e as Amended by the}^Perform^Act
^{§ 114(d)(2)(C)}^{§ 114(d)(2)(C)}
^{[The per}^formance^{of a sound}^rec^{ording publicly by}^{[The per}^formance^{of a sound}^rec^{ording publicly by}
^{means of a s}^ubs^{cription digital audio transmission not}^{means of a s}^ubs^{cription digital audio transmission not}
^exempt^unde^{r pa}^ragrap^{h (1), an e}^{ligible nonsubscription}^exempt^unde^{r pa}^ragrap^{h (1), an e}^{ligible nonsubscription}
^{transmission, or a tran}^{smission n}^{ot exempt}^under^{transmission, or a tran}^{smission n}^{ot exempt}^under
^paragra^{ph (1) t}^{hat is made}^{by a}^p^{reexisting satellite digita}^l^paragra^{ph (1) t}^{hat is made}^{by a}^p^{reexisting satellite digita}^l
^{audio radio service shall be subje}^{ct to statutory licensing,}^{audio radio service shall be subje}^{ct to statutory licensing,}
^{in accordance with s}^u^b^{section (f) if—]}^{in accordance with s}^u^b^{section (f) if—]}
^{(C) in the case of a}ⁿ^{eligible nonsubsc}^ription^{(C) in the case of a}ⁿ^{eligible nonsubsc}^ription
^{transmission or a s}^ubsc^{ription tra}^{nsmission not exe}^mpt^{transmission or a s}^ubsc^{ription tra}^{nsmission not exe}^mpt
^under^paragra^ph^{(1) that is made}^{by a n}^{ew su}^bscri^ption^under^paragra^ph^{(1) that is made}^{by a n}^{ew su}^bscri^ption
^{service or by a}^pre^{existing s}^ubsc^r^{iption service other}^{service or by a}^pre^{existing s}^ubsc^r^{iption service other}
^{than in t}^{he sam}^{e tran}^{smission me}^{dium used by}^suc^h^{than in t}^{he sam}^{e tran}^{smission me}^{dium used by}^suc^h
^{service on J}^{uly 31,}¹⁹^98—^{service on J}^{uly 31,}¹⁹^98—
^{(vi) the transmitting e}^{ntity takes}^{no affirmative step}^{s to}^{(vi) the transmitting ent}^ity^t^{akes no affir}^mative
^{cause or indu}^{ce the}^{making of a}^p^{honorecord by t}^he^{steps to cause or in}^{duce the}^{making of}^a
^{transmission recipien}^{t, and if the}^{technology used b}^y^the^ph^on^orec^ord^{by the transmission recipient, and if}
^{transmitting en}^{tity enables t}^{he tr}^{ansmitting entity to limit}^{the technology used by the transmitting entity}
^{the making}^{by t}^{he tra}^{nsmission r}^{ecipient of}^{enables the transmitt}^{ing enti}^{ty to limi}^{t the}
^{phonorecords of t}^{he tra}^{nsmission directly in a digital}^{making by the transmission r}^{ecipient of}
^{format, the tra}^{nsmitting entity se}^{ts suc}^{h tec}^{hnology to}^phon^orec^ords^{of the trans}^{mission directly in a}
^{limit such making of p}^honorecor^{ds to the exte}^nt^{digital format, the transmitt}ⁱ^{ng entity sets such}
^{permitted by}^suc^{h tec}^hnology;^{technology to limit such m}^{aking of}^pho^nore^cor^ds
^{to the ext}^{ent permit}^{ted by such techn}^ology;
^{New tex}^{t added at end of § 1}^14(d)(2)(C)
^{For pur}^{poses of su}^bpa^ragra^{ph (A}^{)(iv), the mere offering}
^{of a transmission and a}^ccompan^{ying metadata does not in}
^{itself authorize, enable, cause, or}^{induce the}^{making of a}
^{phonorecord. Nothing}^{shall precl}^{ude or pre}^{vent a}
^performing^{rights society or a me}^{chanical rights}
^{organization, or any entity owne}^{d in whole or in part}^by,
^{or acting on be}^{half of, suc}^{h organ}^izati^{ons or entities,}
^{from monitoring pu}^{blic perfor}^ma^{nces or othe}^{r use}^{s of}
^{copyrighted works contain}^{ed in s}^{uch t}^{ransmissions. Any}
^{such orga}^{nization or entity shall be gra}^{nted a license on}
^{either a grat}^{uitous basis or for}^a^{de minimus fee to cover}
^{only the reasona}^{ble costs to the l}^{icensor of providing the}
^{license, and on reasona}^{ble, nondiscriminatory terms, to}
^{access and}^retran^{smit as nec}^essar^{y any conte}^nt
^{contained in suc}^{h tra}^{nsmissions p}^{rotected by conte}^nt
^{protection or similar technologies, if such licenses}^{are for}
^pur^{poses of car}^{rying out t}^{he acti}^{vities of such}
^{organizations or entities in monitoring the p}^ublic
^performa^{nce or othe}^{r us}^{es of co}^{pyrighted works, and}
^{such orga}^{nizations or entities em}^{ploy reasonable}
^{methods to protect a}^{ny s}^{uch co}ⁿ^{tent accessed}^from
^furt^{her distribution.}

^{Current Statute}^Statut^{e as Amended by the}^Perform^Act
^{§ 114(f)(1)}^Dele^{ted and replaced with w}^{hat was f}^{ormerly §}
^{(1) (A) Proceedings under c}^hapte^{r 8 s}^{hall determine}^114(f)(2)

^{reasonable rates}^{and ter}^{ms of ro}^{yalty payment}^{s for}
^subsc^{ription tran}^{smissions by}^pre^{existing su}^bscription
^{services and tra}^nsmissions^{by p}^r^e^{existing satellite digita}^l
^{audio radio services specified by}^subsec^{tion (d)(2) during}
^{the 5-yea}^{r pe}^{riod beginning on Ja}^nuary^{1 of t}^{he second}
^{year following the year in w}^{hich t}^{he p}^{roceedings are to}
^{be commen}^{ced, except}^wher^{e a}^{different tra}^nsitional
^{period is provided under section}^{6(b)(3) of the Cop}^yright
^{Royalty and Distribution Reform Act of 20}^{04 or}^suc^h
^{other pe}^{riod. Such terms and}^rat^{es shall distinguish}
^{among the differe}^{nt ty}^{pes of digital audio transmission}
^{services the}^{n in ope}^{ration. Any c}^{opyright owners}^of
^{sound recordings, p}^{reexisting s}^u^b^{scription services, or}
^{preexisting sa}^{tellite dig}^{ital audio r}^{adio services may}
^{submit to the}^{Copyright Royalty J}^{udges licenses covering}
^such^su^{bscription tra}^nsmissions^{with respe}^{ct to suc}^h
^{sound recordings. The}^{parties to}^{each p}^{roceeding shall}
^{bear t}^{heir own costs.}
^{(B) The schedule of reasona}^{ble r}^{ates and term}^s
^{determined by t}^{he Copyrig}^{ht Royalty Judges s}^{hall, subject}
^{to paragrap}^{h (3), be}^{binding on al}^{l copyright owners of}
^{sound recordings a}^{nd entities pe}^r^{forming sound}
^{recordings affected}^{by t}^{his parag}^r^{aph du}^{ring th}^{e 5-year}
^{period specified in su}^bparag^rap^h^{(A), a transitional period}
^{provided under se}^{ction 6(b)(3) of}^{the Copyright}^Royalty
^{and Distribution Reform Act of}²^{004, or s}^u^c^h^other
^{period as the}^{parties may agr}^{ee. I}ⁿ^establishing^{rates a}^nd
^{terms for}^pree^{xisting su}^bscriptio^{n services a}^nd
^{preexisting sa}^{tellite dig}^{ital audio r}^{adio services, in}
^additi^{on to the objectives set fort}^{h in section}⁸⁰^{1 (b)(1)}
^{the Copyright Royalty J}^{udges ma}^{y consider the}^{rates and}
^{terms for com}^{parable ty}^{pes of s}^u^{bscription digital audio}
^{transmission services}^{and compa}^r^{able circumsta}^nces
^{under volu}^{ntary license ag}^reeme^{nts described in}
^sub^paragra^{ph (A).}
^{(C) The procedures}^u^{nder su}^bpa^ragrap^{hs (A) and (B)}
^{also shall be initiated pursua}^{nt to}^{a petition filed by any}
^{copyright owner}^{s of sou}^{nd recor}^{dings, any pree}^xisting
^subsc^{ription services, or an}^{y p}^ree^{xisting satellite dig}^ital
^{audio radio services indicating that a new ty}^{pe of}
^subsc^{ription digital audio transmi}^{ssion service on w}^hich
^{sound recordings a}^{re pe}^rformed^{is or is about to}
^{become operational, for the}^pu^rp^{ose of determining}
^{reasonable term}^{s and rat}^{es of ro}^{yalty payment}^{s with}
^{respect to s}^uch^{new t}^{ype of t}^ran^{smission service for the}
^{period beginning with}^{the in}^cepti^{on of suc}^{h new}^{type of}
^{service and e}^{nding on the}^{date on which}^the^{royalty rates}
^{and terms}^{for su}^{bscription digital audio transmission}
^{services most rece}^{ntly determine}^{d under s}^u^b^paragra^ph
^{(A) or (B) and chapter}^{8 ex}^pire,^{or such}^other^{period as}
^{the pa}^{rties may agree.}

^{Current Statute}^Statut^{e as Amended by the}^Perform^Act
^{§ 114(f)(2)(A)}^{Renumbered as § 114(f)(1)(A}⁾
^Proceedings^under^{chapter 8 s}^{hall determine}^Proceedings^under^{chapter 8 s}^{hall determine}
^{reasonable rates and}^{terms o}^f^{royalty payments}^{reasonable rates and}^{terms o}^f^{royalty payments}
^{for s}^ubsc^{ription transmission}^{s by eligible}^{for tra}^{nsmissions d}^{uring 5-year periods}^beginning
^nonsu^{bscription tr}^ansmission^{services and}^{on Jan}^{uary 1 o}^f^{the secon}^{d year followin}^{g the year}
^{transmissions by new s}^ubsc^{ription services}^{in which the p}^r^o^{ceedings are}^{to be com}^menced,
^{specified by subsection (d}⁾⁽²⁾^during^{the 5-year}^{except where a different tra}^{nsitional period is}
^{period beginnin}^{g on}^Janu^ary^{1 of the second}^year^{provided un}^{der section 6(b)(}^{3) of the Copyri}^ght
^{following the year in}^which^{the pro}^{ceedings are to}^{Royalty and Distribution Ref}^orm^{Act o}^f^{2004, or}
^{be commen}^{ced, except where a different}^such^{other period}^{as the part}^{ies may agree.}

^{transitional period is pr}^{ovided under se}^ction
^{6(b)(3) of the Co}^{pyright Roy}^{alty and Distribution}
^Reform^{Act o}^f^{2004, or such}^{other period as}^the
^{parties may agree. Such r}^{ates and terms shall}
^{distinguish amon}^{g the differe}^{nt types of eligible}
^nonsu^{bscription tr}^ansmission^{services and new}
^{subscription services then in}^{operation an}^{d shall}
^{include a minimum}^{fee for e}^{ach su}^{ch type of}
^{service. Any copyrig}^{ht ow}^{ners of s}^ound
^recor^{dings o}^r^{any entities pe}^rfo^{rming s}^ound
^recor^{dings a}^{ffected by this p}^aragr^aph^{may submit}
^{to the Copyright Royalty Jud}^{ges licenses covering}
^{such eligible nonsubs}^cription^{transmissions an}^d
^{new subs}^{cription services with respect to suc}^h
^sound^reco^{rdings. The p}^{arties to each p}^r^o^ceeding
^{shall bear their own}^costs.

^{Current Statute}^Statut^{e as Amended by the}^Perform^Act
^{§ 114(f)(2)(B)}^{Renumbered as § 114(f)(1)(B)}
^{The sched}^{ule of reasonable}^rates^{and terms dete}^rmined^{The sched}^{ule of reasonable}^rates^{and terms dete}^rmined
^{by the}^{Copyright Royalty Judges}^{shall, subject to}^{by the}^{Copyright Royalty Judges}^{shall, subject to}
^paragra^{ph (3), b}^e^{binding on all c}^{opyright owners}^of^paragra^{ph (3), b}^e^{binding on all c}^{opyright owners}^of
^{sound recordings a}^{nd entities pe}^r^{forming sound}^{sound recordings a}^{nd entities pe}^r^{forming sound}
^recordings^affe^{cted by this par}^agrap^h^during^the^5-^recordings^under^{this section}^{during the}^5-year^period
^{year pe}^{riod specified in sub}^parag^{raph (A), a tra}^nsitional^{specified in su}^bparag^rap^{h (A), a transitional period}
^{period provided under sec}^{tion 6(}^{b)(3) of the Copy}^right^{provided under se}^{ction 6(b)(3) of}^{the Copyright}^Royalty
^{Royalty and Distribution Act of 2}^{004, or s}^u^c^h^other^{and Distribution Act of 2}⁰⁰^{4, or}^{such ot}^her^{period as the}
^{period as the}^{parties may agr}^{ee. Such rates}^{and ter}^ms^{parties may agr}^{ee. Such}^{rates and}^{terms s}^{hall distinguish}
^{shall distinguish among the diffe}^re^{nt type}^{s of}^eligible^{among the differe}^{nt ty}^{pes of}^{eligible nonsu}^bs^cription
^nonsu^{bscription tr}^ansmission^{services the}^{n in}^transmission^{services t}^h^eⁿ^{in o}^{peration and s}^hall
^{operation and shall include a mini}^{mum fee}^{for eac}^{h su}^ch^{include a minimum f}^{ee for eac}^{h s}^{uch ty}^{pe of se}^{rvice, suc}^h
^{type of ser}^{vice, such}^difference^{s t}^o^{be based on}^criteria^{differences to}^{be bas}^{ed on criteri}^{a including, but}^not
^{including, but not limited to, the quan}^{tity and nat}^{ure of}^{limited t}^{o, the quantity a}^{nd nat}^ur^{e of the}^{use of sou}^nd
^{the use}^{of sound}^{recordings and}^{the degree to w}^{hich u}^se^{recordings and th}^{e degree to whi}^{ch us}^{e of the}^service
^{of the service}^{may su}^bstitute^for^{or may promote t}^he^{may su}^{bstitute for or}^{may p}^{romote the}^purc^{hase of}
^purc^{hase of}^phonore^{cords by co}^nsume^{rs. In}^establishing^phonorecords^{by cons}^umer^{s. In}^{establishing rates a}^nd
^{rates and ter}^{ms for t}^ransmissions^by^eligible^{terms for t}^ransmissions^by^{eligible nonsubsc}^ription
^nonsu^{bscription services a}ⁿ^d^{new subs}^cription^{services and new su}^bscriptioⁿ^{services, the}
^{services, the Copyrig}^{ht Royalty Judges shall establish}^{Copyright Royalty Judges s}^{hall establish}^{the fair ma}^rket
^{rates and terms that most cl}^{early represent the}^{value of the rights licensed u}^{nder this section}^{. In}
^{rates and terms that wo}^{uld h}^{ave been negotiated}^{determining suc}^{h rate}^{s and te}^rms^{, the Copyright Royalty}
^{in the marketplace between}^{a willing buyer and}^a^{Judges s}^hall^{base their}^decision^{on economic,}
^{willing sell}^er^{. In determining s}^u^{ch rates a}^{nd term}^{s, the}^{competitive and programmi}^{ng inf}^{ormation prese}^{nted by}
^{Copyright Royalty Judges s}^hall^{base its}^decis^{ion on}^{the pa}^{rties, including—}
^{economic, competitive and progr}^{amming information}^{(i) whether u}^{se of the}^{service ma}^{y sub}^{stitute for or}^may
^prese^{nted by t}^he^{parties, includin}^g—^{promote the sales of}^phonore^{cords or otherwise may}
^{(i) whether u}^{se of the}^{service ma}^{y sub}^{stitute for or}^may^{interfere with}^{or may e}^nha^{nce t}^h^e^{sound recording}
^{promote the sales of}^phonore^{cords or otherwise may}^{copyright owner’s oth}^{er str}^eams^{of reven}^{ue from its}
^{interfere with}^{or may e}^nha^{nce t}^h^e^{sound recording}^{sound recordings;}^an^d
^{copyright owner’s oth}^{er str}^eams^{of reven}^{ue from its}^{(ii) the relative roles of the copyr}^{ight owner and t}^he
^{sound recordings;}^an^d^{transmitting en}^{tity in the}^copyrig^{hted work and t}^he
^{(ii) the relative roles of the copyr}^{ight owner and t}^he^{service made available to the p}^u^b^{lic with respect to}
^{transmitting en}^{tity in the}^copyrig^{hted work and t}^he^{relative creative contribution, tec}^{hnological contribution,}
^{service made available to the p}^u^b^{lic with respect to}^{capital investment, cost, and risk;}^and
^{relative creative contribution, tec}^{hnological contribution,}⁽ⁱ^{ii) th}^{e degree to which reas}^{onable rec}^ording
^{capital investment, cost, and risk.}^{affects the potential market for so}^und^reco^rdings,
^{In esta}^{blishing suc}^{h rate}^{s and te}^r^{ms, the Copyright}^{and the additional fees that a}^{re required to be}
^{Royalty Judges may consider th}^e^{rates and ter}^{ms for}^{paid by services fo}^{r c}^ompens^ation.
^{comparable ty}^{pes of digital audio}^{transmission services}^{In esta}^{blishing suc}^{h rate}^{s and te}^r^{ms, the Copyright}
^{and compara}^{ble circumsta}^nces^u^{nder voluntar}^{y license}^{Royalty Judges may consider th}^e^{rates and ter}^{ms for}
^agreements^{negotiated under}^subpar^agra^{ph (}^A⁾^.^{comparable ty}^{pes of digital audio}^{transmission services}
^{and compara}^{ble circumsta}^nces^u^{nder voluntar}^{y license}
^agreements^{negotiated under}^subpar^agra^{ph (}^A⁾^.

^{Current Statute}^Statut^{e as Amended by the}^Perform^Act
^{§ 114(f)(2)(C)}^{Renumbered as § 114(f)(1)(C}⁾
^{The procedu}^{res u}^{nder s}^u^b^paragr^{aphs (A) and (B) shall}^{The procedu}^{res u}^{nder s}^u^b^paragr^{aphs (A) and (B) shall}
^{also be initiated pursua}^{nt to a p}^e^t^{ition filed by any}^{also be initiated pursua}^{nt to a p}^e^t^{ition filed by any}
^{copyright owner}^{s of sou}^{nd recor}^{dings or any eligible}^{copyright owner}^{s of sou}^{nd recor}^{dings or any}
^nonsu^{bscription se}^{rvice or ne}^{w s}^ubsc^{ription service}^{transmitting enti}^{ty indicating that a new type of}
^{indicating that a new t}^{ype of}^{eligible nonsubs}^cription^{service on whic}^{h so}^und^reco^r^{dings are per}^for^med
^{service or new su}^bsc^{ription s}^{ervice on whic}^h^{is or is ab}^{out to beco}^{me ope}^rational^{, for the}
^sound^reco^rdings^{are perf}^or^{med is or is ab}^{out to}^pur^{pose of determining}^reasona^b^{le terms and rate}^{s of}
^{become oper}^ational^{, for the}^p^{urpose of dete}^rmining^{royalty payments}^{with res}^{pect to}^such^{new t}^{ype of}
^{reasonable term}^{s and rat}^{es of ro}^{yalty payment}^{s with}^{service for th}^{e pe}^{riod beginning}^{with the ince}^{ption of}
^{respect to s}^uch^{new t}^{ype of}^servi^{ce for the}^period^such^{new ty}^{pe of se}^{rvice and e}^{nding on the date on}
^{beginning with}^{the in}^{ception of s}^uch^{new ty}^{pe of se}^rvice^{which th}^{e royalty rates a}^{nd term}^{s for pre}^existing
^{and ending on t}^{he date on w}^hich^{the royalty rates a}^nd^subsc^{ription digital audio transmi}^{ssion services,}^eligible
^{terms for}^pree^{xisting su}^bscriptio^{n digital audio}^nonsu^{bscription services, o}^r^{new subs}^cription
^{transmission services}^or^{preexisting satell}^{ite digi}^tal^services^{, as the case may}^{be, most recently dete}^rmined
^{radio a}^{udio services}^{, as the}^ca^{se may be, most}^recently^{under s}^u^b^paragra^ph^{(A) or (B) and chapter}^{8 e}^{xpire, or}
^{determined unde}^{r su}^bpa^ragrap^{h (}^{A) or (B) and chapter}⁸^{such ot}^her^{period as the}^parties^{may agree.}
^{expire, or su}^{ch othe}^{r pe}^{riod as the pa}^{rties may agree.}
^{§ 114(j)}^{New tex}^{t added at end of § 1}^14(j)(10)
^{(A) A ‘reasonable recording’ means the}^{making of a}
^{phonorecord em}^{bodying all or part of a pe}^rformanc^e
^{licensed under t}^{his section for}^pr^{ivate, noncommercial}
^{use whe}^{re tec}^{hnological measure}^{s used b}^y^the
^{transmitting en}^{tity, and which a}^r^e^{incorporated into a}
^{recording device}^—
^{(i) permit automated recording or playback}^{based on}
^{specific program}^{s, time periods, or chan}^{nels as selected}
^{by or for t}^{he u}^ser;
^{(ii) d}^o^{not permit automated rec}^{ording or playback}^based
^{on specific sou}^{nd recordings, alb}^{ums, or artists;}
⁽ⁱⁱ^{i) do not permit the sepa}^ration^{of component s}^egments
^{of the copyrig}^{hted material conta}^{ined in the tra}^nsmission
^{program w}^{hich res}^{ults in t}^{he play}^{back of a ma}^nipulated
^seque^{nce; and}
^{(iv) do not permit the redistributi}^{on, retransmission or}
^{other ex}^{porting of a}^phonorecor^{d embodying all or part}
^{of a performa}^{nce licensed}^under^{this section from t}^he
^{device by digital outputs or remo}^{vable media, unless the}
^{destination device is part of a sec}^{ure in-home}^network
^{that also complies with each of t}^{he re}^quireme^{nts in t}^his
^paragra^ph.
^{(B) Nothing in this pa}^ragrap^{h s}^{hall prevent a}^cons^umer
^{from engaging in}^{non-automated}^{manual recording a}^nd
^{playback in a}^man^{ner t}^{hat is not a}ⁿ^infringe^{ment of}
^copyright.
^{§ 804(b)(3)(C)(i)}^{§ 804(b)(3)(C)(i)}
^{(i) Notwithstanding any other}^pr^{ovision of this chapter,}^{(i) Notwithstanding any other}^pr^{ovision of this chapter,}
^{this su}^bparag^rap^{h shall govern}^pr^{oceedings commenced}^{this su}^bparag^rap^{h shall govern}^pr^{oceedings commenced}
^purs^uant^{to section 1}^{14 (f)(1)(C)}^{and 11}^{4 (f)(2)(C)}^purs^uant^{to section 1}^{14 (f)(1)(C)}^{and 114 (f)(2)(C)}
^concerning^{new ty}^{pes of s}^ervices.^concerning^{new ty}^{pes of s}^ervices.

^{Current Statute}^Statut^{e as Amended by the}^Perform^Act
^{§ 804(b)(3)(C)(iv)}^{§ 804(b)(3)(C)(iv)}
^{The rates a}^{nd terms}^{shall remain}^{in effect for}^the^period^{The rates a}^{nd terms}^{shall remain}^{in effect for}^the^period
^{set forth in}^{section 1}^{14(f)(1)(C) or 11}^{4(f)(2)(C), as the}^{set forth in}^{section 1}^14(f)(1)(C)^{or 114(f)(2)(C), as the}
^{case may b}^e.^{case may be}^.
^{Kate M. Man}^u^e^l ^B^rⁱ^a^{n T}^.^Y^e^h
^L^e^gⁱ^s^l^at^iv^{e A}^t^torn^e^y
^by^e^h^@^c^rs^.l^oc.g^ov^{, 7}^-⁵¹⁸²