#aae? ,,congress  #b;d ,session  ,h4 ,r4
 #eddg  ,,an ,,act  ,to mod]nize        
copyright law1 & = o!r purposes4  #a4   
,%ort title2 table ( cont5ts  7a7 ,%ort 
title ,?is ,act may be cit$ z ! ,music  
,mod]nization ,act4  7b7 ,table (       
cont5ts ,! table ( cont5ts = ?is ,act is
 z foll[s3  ,sec4 #a4 ,%ort title2 table
 ( cont5ts4 ,sec4 #b4 ,rescission ,(    
,unobligat$ ,balances ,9 ,! ,dep>tm5t ,(
 ,ju/ice ,assets ,=feiture ,fund4 ,title
 ,i--,music ,lic5s+ ,mod]nization ,sec4 
#aja4 ,%ort title4 ,sec4 #ajb4 ,blanket 
lic5se = digital uses & me*anical lic5s+
 collective4 ,sec4 #ajc4 ,am5dm5ts to   
section #aad4 ,sec4 #ajd4 ,r&om         
assignm5t ( rate c\rt proce$+s4 ,title  
,,ii--,comp5sat+ ,legacy ,arti/s = _!   
,songs1 ,s]vice1 & ,important           
,contributions to ,society ,sec4 #bja4  
,%ort title4 ,sec4 #bjb4 ,unau?oriz$    
digital p]=mance ( pre-#aigb s\nd       
record+s4 ,sec4 #bjc4 ,effective date4  
,title ,,iii--,allocation = ,music      
,produc]s ,sec4 #cja4 ,%ort title4 ,sec4

 #cjb4 ,paym5t ( /atutory p]=mance      
royalties4 ,sec4 #cjc4 ,effective date4 
#b4 ,rescission ,( ,unobligat$ ,balances
 ,9 ,! ,dep>tm5t ,( ,ju/ice ,assets     
,=feiture ,fund ,( ! unobligat$ balances
 available "u ! ,dep>tm5t ( ,ju/ice     
,assets ,=feiture ,fund1 #dg1jjj1jjj is 
h]eby p]man5tly resc9d$4  ,i ,music     
,lic5s+ ,mod]nization  #aja4 ,%ort title
 ,?is title may be cit$ z ! ,musical    
,works ,mod]nization ,act4  #ajb4       
,blanket lic5se = digital uses &        
me*anical lic5s+ collective  7a7        
,am5dm5t ,section #aae ( title #ag1     
,unit$ ,/ates ,code1 is am5d$-- 7#a7 9  
subsection 7a7--  7,a7 by ins]t+ 9 g5]al
 aft] ,availability & scope ( compulsory
 lic5se2  7,b7 by /rik+ p>agraph 7#a7 & 
ins]t+ ! foll[+ new p>agraph3  7#a7     
,eligibility = compulsory lic5se  7,a7  
,conditions = compulsory lic5se ,a p]son
 may by comply+ ) ! provisions ( ?is    
section obta9 a compulsory lic5se to    
make & di/ribute phonorecords ( a       
nondramatic musical "w1 includ+ by means

 ( digital phonorecord deliv]y4 ,a p]son
 may obta9 a compulsory lic5se only if !
 prim>y purpose 9 mak+ phonorecords ( ! 
musical "w is to di/ribute !m to !      
public = private use1 includ+ by means (
 digital phonorecord deliv]y1 &-- 7i7   
phonorecords ( su* musical "w h         
previ\sly be5 di/ribut$ to ! public 9 ! 
,unit$ ,/ates "u ! au?ority ( !         
copyright own] ( ! "w1 includ+ by means 
( digital phonorecord deliv]y2 or  7ii7 
9 ! case ( a digital music provid] seek+
 to make & di/ribute digital phonorecord
 deliv]ies ( a s\nd record+ embody+ a   
musical "w "u a compulsory lic5se = :i* 
clause 7i7 does n apply-- 7,i7 ! fir/   
fixation ( su* s\nd record+ 0 made "u ! 
au?ority ( ! musical "w copyright own]1 
& s\nd record+ copyright own] has !     
au?ority ( ! musical "w copyright own]  
to make & di/ribute digital phonorecord 
deliv]ies embody+ su* "w to ! public 9 !
 ,unit$ ,/ates2 &  7,,ii7 ! s\nd record+
 copyright own] or its au?oriz$         
di/ributor has au?oriz$ ! digital music 

provid] to make & di/ribute digital     
phonorecord deliv]ies ( ! s\nd record+  
to ! public 9 ! ,unit$ ,/ates4  7,b7    
,duplication ( s\nd record+ ,a p]son may
 n obta9 a compulsory lic5se = ! use ( !
 "w 9 ! mak+ ( phonorecords duplicat+ a 
s\nd record+ fix$ by ano!r1 includ+ by  
means ( digital phonorecord deliv]y1    
unless--  7i7 su* s\nd record+ 0 fix$   
lawfully2 &  7ii7 ! mak+ ( !            
phonorecords 0 au?oriz$ by ! own] ( !   
copyright 9 ! s\nd record+ or1 if ! s\nd
 record+ 0 fix$ be=e ,febru>y #ae1      
#aigb1 by any p]son :o fix$ ! s\nd      
record+ pursuant to an express lic5se f 
! own] ( ! copyright 9 ! musical "w or  
pursuant to a valid compulsory lic5se = 
use ( su* "w 9 a s\nd record+4  2 &     
7,c7 9 p>agraph 7#b71 by /rik+ ,a       
compulsory lic5se & ins]t+ ,musical     
arrangem5t4--,a compulsory lic5se2  7#b7
 by /rik+ subsection 7b7 & ins]t+ !     
foll[+3  7b7 ,proc$ures ,to obta9 a     
compulsory lic5se  7#a7 ,phonorecords   
o!r ?an digital phonorecord deliv]ies ,a

 p]son :o seeks to obta9 a compulsory   
lic5se "u subsection 7a7 to make &      
di/ribute phonorecords ( a musical "w   
o!r ?an by means ( digital phonorecord  
deliv]y %all1 be=e or )9 #cj cal5d> days
 aft] mak+1 & be=e di/ribut+1 any       
phonorecord ( ! "w1 s]ve notice (       
int5tion to d s on ! copyright own]4 ,if
 ! regi/ration or o!r public records ( !
 ,copyright ,(fice d n id5tify !        
copyright own] & include an address at  
:i* notice c be s]v$1 x %all be         
suffici5t to file ! notice ( int5tion ) 
! ,copyright ,(fice4 ,! notice %all     
comply1 9 =m1 cont5t1 & mann] ( s]vice1 
) requirem5ts t ! ,regi/] ( ,copyrights 
%all prescribe by regulation4  7#b7     
,digital phonorecord deliv]ies ,a p]son 
:o seeks to obta9 a compulsory lic5se "u
 subsection 7a7 to make & di/ribute     
phonorecords ( a musical "w by means (  
digital phonorecord deliv]y--  7,a7     
prior to ! lic5se availability date1    
%all1 be=e or )9 #cj cal5d> days aft]   
fir/ mak+ any su* digital phonorecord   

deliv]y1 s]ve a notice ( int5tion to d s
 on ! copyright own] 7b may n file !    
notice ) ! ,copyright ,(fice1 ev5 if !  
public records ( ! ,(fice d n id5tify ! 
own] or ! own]'s address71 & su* notice 
%all comply1 9 =m1 cont5t1 & mann] (    
s]vice1 ) requirem5ts t ! ,regi/] (     
,copyrights %all prescribe by           
regulation2 or  7,b7 on or aft] ! lic5se
 availability date1 %all1 be=e mak+ any 
su* digital phonorecord deliv]y1 foll[ !
 proc$ure describ$ 9 subsection 7d77#b71
 except z provid$ 9 p>agraph 7#c74  7#c7
 ,record company individual d[nload     
lic5ses ,not)/&+ p>agraph 7#b77;,b71 a  
record company may1 on or aft] ! lic5se 
availability date1 obta9 an individual  
d[nload lic5se 9 accordance ) ! notice  
requirem5ts describ$ 9 p>agraph         
7#b77;,a7 7except = ! requirem5t t      
notice occur prior to ! lic5se          
availability date74 ,a record company t 
obta9s an individual d[nload lic5se z   
p]mitt$ "u ?is p>agraph %all provide    
/atem5ts ( acc\nt & pay royalties z     

provid$ 9 subsection 7c77#b77;,i74  7#d7
 ,failure to obta9 lic5se  7,a7         
,phonorecords o!r ?an digital           
phonorecord deliv]ies ,9 ! case (       
phonorecords made & di/ribut$ o!r ?an by
 means ( digital phonorecord deliv]y1 ! 
failure to s]ve or file ! notice (      
int5tion requir$ by p>agraph 7#a7       
=ecloses ! possibility ( a compulsory   
lic5se "u p>agraph 7#a74 ,9 ! abs5ce ( a
 volunt>y lic5se1 ! failure to obta9 a  
compulsory lic5se r5d]s ! mak+ &        
di/ribution ( phonorecords actionable z 
acts ( infr+em5t "u section #eja &      
subject to ! rem$ies provid$ by sections
 #ejb ?r\gh #ejf4  7,b7 ,digital        
phonorecord deliv]ies  7i7 ,9 ! case (  
phonorecords made & di/ribut$ by means (
 digital phonorecord deliv]y3 7,i7 ,!   
failure to s]ve ! notice ( int5tion     
requir$ by p>agraph 7#b77;,a7 or        
p>agraph 7#c71 z applicable1 =ecloses ! 
possibility ( a compulsory lic5se "u su*
 p>agraph4  7,,ii7 ,! failure to comply 
) p>agraph 7#b77;,b7 =ecloses !         

possibility ( a blanket lic5se = a p]iod
 ( #c ye>s aft] ! la/ cal5d> day on :i* 
! notice ( lic5se 0 requir$ to be       
submitt$ to ! me*anical lic5s+          
collective "u su* p>agraph4  7ii7 ,9    
ei!r case describ$ 9 clause 7i71 9 !    
abs5ce ( a volunt>y lic5se1 ! failure to
 obta9 a compulsory lic5se r5d]s ! mak+ 
& di/ribution ( phonorecords by means ( 
digital phonorecord deliv]y actionable z
 acts ( infr+em5t "u section #eja &     
subject to ! rem$ies provid$ by sections
 #ejb ?r\gh #ejf4  2  7#c7 by am5d+     
subsection 7c7 to read z foll[s3  7c7   
,g5]al conditions applicable to         
compulsory lic5se  7#a7 ,royalty payable
 "u compulsory lic5se  7,a7             
,id5tification requirem5t ,to be entitl$
 to receive royalties "u a compulsory   
lic5se obta9$ "u subsection 7b77#a7 !   
copyright own] mu/ be id5tifi$ 9 !      
regi/ration or o!r public records ( !   
,copyright ,(fice4 ,! own] is entitl$ to
 royalties = phonorecords made &        
di/ribut$ aft] be+ s id5tifi$1 b is n   

entitl$ to recov] = any phonorecords    
previ\sly made & di/ribut$4  7,b7       
,royalty = phonorecords o!r ?an digital 
phonorecord deliv]ies ,except z provid$ 
by subp>agraph 7,a71 = e phonorecord    
made & di/ribut$ "u a compulsory lic5se 
"u subsection 7a7 o!r ?an by means (    
digital phonorecord deliv]y1 ) respect  
to ea* "w embodi$ 9 ! phonorecord1 !    
royalty %all be ! royalty prescrib$ "u  
subp>agraphs 7,d7 ?r\gh 7,f7 & p>agraph 
7#b77;,a7 & *apt] #h ( ?is title4 ,=    
purposes ( ?is subp>agraph1 a           
phonorecord is consid]$ di/ribut$ if !  
p]son ex]cis+ ! compulsory lic5se has   
volunt>ily & p]man5tly p>t$ ) its       
possession4  7,c7 ,royalty = digital    
phonorecord deliv]ies ,= e digital      
phonorecord deliv]y ( a musical "w made 
"u a compulsory lic5se "u ?is section1 !
 royalty payable %all be ! royalty      
prescrib$ "u subp>agraphs 7,d7 ?r\gh    
7,f7 & p>agraph 7#b77;,a7 & *apt] #h (  
?is title4  7,d7 ,au?ority to negotiate 
,not)/&+ any provision ( ! antitru/     

laws1 any copyright own]s ( nondramatic 
musical works & any p]sons entitl$ to   
obta9 a compulsory lic5se "u subsection 
7a7 may negotiate & agree ^u ! t]ms &   
rates ( royalty paym5ts "u ?is section &
 ! proportionate division ( fees paid   
among copyright own]s1 & may designate  
common ag5ts on a nonexclusive basis to 
negotiate1 agree to1 pay or receive su* 
royalty paym5ts4 ,su* au?ority to       
negotiate ! t]ms & rates ( royalty      
paym5ts includes1 b is n limit$ to1 !   
au?ority to negotiate ! ye> dur+ :i* !  
royalty rates prescrib$ "u ?is          
subp>agraph & subp>agraphs 7,e7 & 7,f7 &
 p>agraph 7#b77;,a7 & *apt] #h ( ?is    
title %all next be det]m9$4  7,e7       
,det]m9ation ( reasonable rates & t]ms  
,proce$+s "u *apt] #h %all det]m9e      
reasonable rates & t]ms ( royalty       
paym5ts = ! activities specifi$ by ?is  
section dur+ ! p]iod beg9n+ ) !         
effective date ( su* rates & t]ms1 b n  
e>li] ?an ,janu>y #a ( ! second ye>     
foll[+ ! ye> 9 :i* ! petition reque/+ ! 

proce$+ is fil$1 & end+ on ! effective  
date ( successor rates & t]ms1 or su*   
o!r p]iod z ! p>ties may agree4 ,any    
copyright own]s ( nondramatic musical   
works & any p]sons entitl$ to obta9 a   
compulsory lic5se "u subsection 7a7 may 
submit to ! ,copyright ,royalty ,judges 
lic5ses cov]+ su* activities4 ,! p>ties 
to ea* proce$+ %all be> _! own co/s4    
7,f7 ,s*$ule ( reasonable rates ,!      
s*$ule ( reasonable rates & t]ms det]m9$
 by ! ,copyright ,royalty ,judges %all1 
subject to p>agraph 7#b77;,a71 be b9d+  
on all copyright own]s ( nondramatic    
musical works & p]sons entitl$ to obta9 
a compulsory lic5se "u subsection 7a7   
dur+ ! p]iod specifi$ 9 subp>agraph     
7,e71 su* o!r p]iod z may be det]m9$    
pursuant to subp>agraphs 7,d7 & 7,e71 or
 su* o!r p]iod z ! p>ties may agree4 ,! 
,copyright ,royalty ,judges %all e/abli%
 rates & t]ms t mo/ cle>ly repres5t !   
rates & t]ms t w\ld h be5 negotiat$ 9 ! 
m>ketplace betwe5 a will+ buy] & a will+
 sell]4 ,9 det]m9+ su* rates & t]ms =   

digital phonorecord deliv]ies1 !        
,copyright ,royalty ,judges %all base _!
 decision on economic1 competitive1 &   
programm+ in=mation pres5t$ by ! p>ties1
 includ+-- 7i7 :e!r use ( ! compulsory  
lic5see's s]vice may sub/itute = or may 
promote ! sales ( phonorecords or       
o!rwise may int]f]e ) or may enhance !  
musical "w copyright own]'s o!r /reams (
 rev5ue f its musical works2 &  7ii7 !  
relative roles ( ! copyright own] & !   
compulsory lic5see 9 ! copyright$ "w & !
 s]vice made available to ! public )    
respect to ! relative creative          
contribution1 te*nological contribution1
 capital inve/m5t1 co/1 & risk4  7#b7   
,additional t]ms & conditions  7,a7     
,volunt>y lic5ses & contractual royalty 
rates  7i7 ,lic5se agreem5ts volunt>ily 
negotiat$ at any "t betwe5 "o or m      
copyright own]s ( nondramatic musical   
works & "o or m p]sons entitl$ to obta9 
a compulsory lic5se "u subsection 7a7   
%all be giv5 effect 9 lieu ( any        
det]m9ation by ! ,copyright ,royalty    

,judges4 ,subject to clause 7ii71 !     
royalty rates det]m9$ pursuant to       
subp>agraphs 7,e7 & 7,f7 ( p>agraph 7#a7
 %all be giv5 effect z to digital       
phonorecord deliv]ies 9 lieu ( any      
contr>y royalty rates specifi$ 9 a      
contract pursuant to :i* a record+ arti/
 :o is ! au?or ( a nondramatic musical  
"w grants a lic5se "u t p]son's         
exclusive rights 9 ! musical "w "u      
p>agraphs 7#a7 & 7#c7 ( section #ajf or 
commits ano!r p]son to grant a lic5se 9 
t musical "w "u p>agraphs 7#a7 & 7#c7 ( 
section #ajf1 to a p]son desir+ to fix 9
 a tangible m$ium ( expression a s\nd   
record+ embody+ ! musical "w4  7ii7 ,!  
second s5t5ce ( clause 7i7 %all n apply 
to-- 7,i7 a contract ent]$ into on or   
be=e ,june #bb1 #aiie1 & n modifi$      
!reaft] = ! purpose ( r$uc+ ! royalty   
rates det]m9$ pursuant to subp>agraphs  
7,e7 & 7,f7 ( p>agraph 7#a7 or (        
increas+ ! numb] ( musical works )9 !   
scope ( ! contract cov]$ by ! r$uc$     
rates1 except if a contract ent]$ into  

on or be=e ,june #bb1 #aiie1 is modifi$ 
!reaft] = ! purpose ( increas+ ! numb] (
 musical works )9 ! scope ( ! contract1 
any contr>y royalty rates specifi$ 9 !  
contract %all be giv5 effect 9 lieu (   
royalty rates det]m9$ pursuant to       
subp>agraphs 7,e7 & 7,f7 ( p>agraph 7#a7
 = ! numb] ( musical works )9 ! scope ( 
! contract z ( ,june #bb1 #aiie2 &      
7,,ii7 a contract ent]$ into aft] ! date
 t ! s\nd record+ is fix$ 9 a tangible  
m$ium ( expression sub/antially 9 a =m  
int5d$ = comm]cial release1 if at ! "t !
 contract is ent]$ into1 ! record+ arti/
 reta9s ! "r to grant lic5ses z to !    
musical "w "u p>agraphs 7#a7 & 7#c7 (   
section #ajf4  7,b7 ,s\nd record+       
in=mation ,except z provid$ 9 section   
#ajjb7;e7 ( ?is title1 a digital        
phonorecord deliv]y lic5s$ "u ?is       
p>agraph %all be accompani$ by !        
in=mation encod$ 9 ! s\nd record+1 if   
any1 by or "u ! au?ority ( ! copyright  
own] ( t s\nd record+1 t id5tifies !    
title ( ! s\nd record+1 ! featur$       

record+ arti/ :o p]=ms on ! s\nd        
record+1 & relat$ in=mation1 includ+    
in=mation conc]n+ ! und]ly+ musical "w &
 its writ]4  7,c7 ,infr+em5t rem$ies    
7i7 ,a digital phonorecord deliv]y ( a  
s\nd record+ is actionable z an act (   
infr+em5t "u section #eja1 & is fully   
subject to ! rem$ies provid$ by sections
 #ejb ?r\gh #ejf1 unless-- 7,i7 !       
digital phonorecord deliv]y has be5     
au?oriz$ by ! s\nd record+ copyright    
own]2 &  7,,ii7 ! entity mak+ ! digital 
phonorecord deliv]y has obta9$ a        
compulsory lic5se "u subsection 7a7 or  
has o!rwise be5 au?oriz$ by ! musical "w
 copyright own]1 or by a record company 
pursuant to an individual d[nload       
lic5se1 to make & di/ribute phonorecords
 ( ea* musical "w embodi$ 9 ! s\nd      
record+ by means ( digital phonorecord  
deliv]y4  7ii7 ,any cause ( action "u   
?is subp>agraph %all be 9 addition to ^?
 available to ! own] ( ! copyright 9 !  
nondramatic musical "w "u subp>agraph   
7,j7 & section #ajf7d7 & ! own] ( !     

copyright 9 ! s\nd record+ "u section   
#ajf7f74  7,d7 ,liability ( s\nd record+
 own]s ,! liability ( ! copyright own] (
 a s\nd record+ = infr+em5t ( !         
copyright 9 a nondramatic musical "w    
embodi$ 9 ! s\nd record+ %all be det]m9$
 9 accordance ) applicable law1 except t
 ! own] ( a copyright 9 a s\nd record+  
%all n be liable = a digital phonorecord
 deliv]y by a ?ird p>ty if ! own] ( !   
copyright 9 ! s\nd record+ does n lic5se
 ! di/ribution ( a phonorecord ( !      
nondramatic musical "w4  7,e7 ,record+  
devices & m$ia ,no?+ 9 section #ajjh    
%all be con/ru$ to prev5t ! ex]cise ( ! 
rights & rem$ies all[$ by ?is p>agraph1 
subp>agraph 7,j71 & *apt] #e 9 ! ev5t ( 
a digital phonorecord deliv]y1 except t 
no action alleg+ infr+em5t ( copyright  
may be br\ght "u ?is title aga9/ a      
manufactur]1 import] or di/ributor ( a  
digital audio record+ device1 a digital 
audio record+ m$ium1 an analog record+  
device1 or an analog record+ m$ium1 or  
aga9/ a consum]1 bas$ on ! actions      

describ$ 9 su* section4  7,f7           
,pres]vation ( rights ,no?+ 9 ?is       
section annuls or limits 7i7 ! exclusive
 "r to publicly p]=m a s\nd record+ or !
 musical "w embodi$ !re91 includ+ by    
means ( a digital transmission1 "u      
sections #ajf7d7 & #ajf7f71 7ii7 except 
= compulsory lic5s+ "u ! conditions     
specifi$ by ?is section1 ! exclusive    
rights to reproduce & di/ribute ! s\nd  
record+ & ! musical "w embodi$ !re9 "u  
sections #ajf7a7 & #ajf7c71 includ+ by  
means ( a digital phonorecord deliv]y1  
or 7iii7 any o!r rights "u any o!r      
provision ( section #ajf1 or rem$ies    
available "u ?is title1 z su* rights or 
rem$ies exi/ ei!r be=e or aft] ! date ( 
enactm5t ( ! ,digital ,p]=mance ,"r 9   
,s\nd ,record+s ,act ( #aiie4  7,g7     
,exempt transmissions & retransmissions 
,! provisions ( ?is section conc]n+     
digital phonorecord deliv]ies %all n    
apply to any exempt transmissions or    
retransmissions "u section #aad7;d77#a74
 ,! exemptions creat$ 9 section         

#aad7;d77#a7 d n exp& or r$uce ! rights 
( copyright own]s "u section #ajf7a7    
?r\gh 7#e7 ) respect to su*             
transmissions & retransmissions4  7,h7  
,di/ribution by r5tal1 lease1 or l5d+ ,a
 compulsory lic5se obta9$ "u subsection 
7b77#a7 to make & di/ribute phonorecords
 includes ! "r ( ! mak] ( su* a         
phonorecord to di/ribute or au?orize    
di/ribution ( su* phonorecord1 o!r ?an  
by means ( a digital phonorecord        
deliv]y1 by r5tal1 lease1 or l5d+ 7or by
 acts or practices 9 ! nature ( r5tal1  
lease1 or l5d+74 ,) respect to ea*      
nondramatic musical "w embodi$ 9 !      
phonorecord1 ! royalty %all be a        
proportion ( ! rev5ue receiv$ by !      
compulsory lic5see f e su* act (        
di/ribution ( ! phonorecord "u ?is      
clause equal to ! proportion ( ! rev5ue 
receiv$ by ! compulsory lic5see f       
di/ribution ( ! phonorecord "u          
subsection 7a77#a77;,a77ii77,,ii7 t is  
payable by a compulsory lic5see "u t    
clause & "u *apt] #h4 ,! ,regi/] (      

,copyrights %all issue regulations to   
c>ry out ! purpose ( ?is clause4  7,i7  
,paym5t ( royalties & /atem5ts ( acc\nt 
,except z provid$ 9 p>agraphs           
7#d77;,a77i7 & 7#aj77;,b7 ( subsection  
7d71 royalty paym5ts %all be made on or 
be=e ! tw5tie? day ( ea* mon? & %all    
include all royalties = ! mon? next     
prec$+4 ,ea* mon?ly paym5t %all be made 
"u oa? & %all comply ) requirem5ts t !  
,regi/] ( ,copyrights %all prescribe by 
regulation4 ,! ,regi/] %all also        
prescribe regulations "u :i* detail$    
cumulative annual /atem5ts ( acc\nt1    
c]tifi$ by a c]tifi$ public acc\ntant1  
%all be fil$ = e compulsory lic5se "u   
subsection 7a74 ,! regulations cov]+ bo?
 ! mon?ly & ! annual /atem5ts ( acc\nt  
%all prescribe ! =m1 cont5t1 & mann] (  
c]tification ) respect to ! numb] (     
records made & ! numb] ( records        
di/ribut$4  7,j7 ,notice ( default &    
t]m9ation ( compulsory lic5se ,9 ! case 
( a lic5se obta9$ "u subsection 7b77#a71
 7b77#b77;,a71 or 7b77#c71 if !         

copyright own] does n receive ! mon?ly  
paym5t & ! mon?ly & annual /atem5ts (   
acc\nt :5 due1 ! own] may give writt5   
notice to ! lic5see t1 unless ! default 
is rem$i$ )9 #cj days f ! date ( !      
notice1 ! compulsory lic5se w be        
automatically t]m9at$4 ,su* t]m9ation   
r5d]s ei!r ! mak+ or ! di/ribution1 or  
bo?1 ( all phonorecords = :i* ! royalty 
has n be5 paid1 actionable z acts (     
infr+em5t "u section #eja & fully       
subject to ! rem$ies provid$ by sections
 #ejb ?r\gh #ejf4 ,9 ! case ( a lic5se  
obta9$ "u subsection 7b77#b77;,b71      
lic5se au?ority "u ! compulsory lic5se  
may be t]m9at$ z provid$ 9 subsection   
7d77#d77;,e74  2  7#d7 by am5d+         
subsection 7d7 to read z foll[s3  7d7   
,blanket lic5se = digital uses1         
me*anical lic5s+ collective1 & digital  
lic5see coord9ator  7#a7 ,blanket lic5se
 = digital uses  7,a7 ,9 g5]al ,a       
digital music provid] t qualifies = a   
compulsory lic5se "u subsection 7a7 may1
 by comply+ ) ! t]ms & conditions ( ?is 

subsection1 obta9 a blanket lic5se f    
copyright own]s ?r\gh ! me*anical lic5s+
 collective to make & di/ribute digital 
phonorecord deliv]ies ( musical works   
?r\gh "o or m cov]$ activities4  7,b7   
,includ$ activities ,a blanket lic5se-- 
7i7 cov]s all musical works 7or %>es (  
su* works7 available = compulsory lic5s+
 "u ?is section = purposes ( engag+ 9   
cov]$ activities1 except z provid$ 9    
subp>agraph 7,c72  7ii7 includes ! mak+ 
& di/ribution ( s]v]1 int]m$iate1       
ar*ival1 & incid5tal reproductions (    
musical works t are reasonable &        
necess>y = ! digital music provid] to   
engage 9 cov]$ activities lic5s$ "u ?is 
subsection1 solely = ! purpose ( engag+ 
9 su* cov]$ activities2 &  7iii7 does n 
cov] or include any rights or uses o!r  
?an ^? describ$ 9 clauses 7i7 & 7ii74   
7,c7 ,o!r lic5ses ,a volunt>y lic5se =  
cov]$ activities ent]$ into by or "u !  
au?ority ( "o or m copyright own]s & "o 
or m digital music provid]s1 or au?ority
 to make & di/ribute p]man5t d[nloads ( 

a musical "w obta9$ by a digital music  
provid] f a s\nd record+ copyright own] 
pursuant to an individual d[nload       
lic5se1 %all be giv5 effect 9 lieu ( a  
blanket lic5se "u ?is subsection )      
respect to ! musical works 7or %>es     
!re(7 cov]$ by su* volunt>y lic5se or   
individual d[nload au?ority & ! foll[+  
conditions apply3  7i7 ,:]e a volunt>y  
lic5se or individual d[nload lic5se     
applies1 ! lic5se au?ority provid$ "u ! 
blanket lic5se %all exclude any musical 
works 7or %>es !re(7 subject to !       
volunt>y lic5se or individual d[nload   
lic5se4  7ii7 ,an entity engag$ 9 cov]$ 
activities "u a volunt>y lic5se or      
au?ority obta9$ pursuant to an          
individual d[nload lic5se t is a        
significant nonblanket lic5see %all     
comply ) p>agraph 7#f77;,a74  7iii7 ,!  
rates & t]ms ( any volunt>y lic5se %all 
be subject to ! second s5t5ce ( clause  
7i7 & clause 7ii7 ( subsection          
7c77#b77;,a7 & p>agraph 7#i77;,c71 z    
applicable4  7,d7 ,protection aga9/     

infr+em5t actions ,a digital music      
provid] t obta9s & complies ) ! t]ms ( a
 valid blanket lic5se "u ?is subsection 
%all n be subject to an action =        
infr+em5t ( ! exclusive rights provid$  
by p>agraphs 7#a7 & 7#c7 ( section #ajf 
"u ?is title aris+ f use ( a musical "w 
7or %>e !re(7 to engage 9 cov]$         
activities au?oriz$ by su* lic5se1      
subject to p>agraph 7#d77;,e74  7,e7    
,o!r requirem5ts & conditions apply     
,except z expressly provid$ 9 ?is       
subsection1 ea* requirem5t1 limitation1 
condition1 privilege1 "r1 & rem$y       
o!rwise applicable to compulsory lic5ses
 "u ?is section %all apply to compulsory
 blanket lic5ses "u ?is subsection4     
7#b7 ,availability ( blanket lic5se     
7,a7 ,proc$ure = obta9+ lic5se ,a       
digital music provid] may obta9 a       
blanket lic5se by submitt+ a notice (   
lic5se to ! me*anical lic5s+ collective 
t specifies ! p>ticul> cov]$ activities 
9 :i* ! digital music provid] seeks to  
engage1 z foll[s3  7i7 ,! notice (      

lic5se %all comply 9 =m & sub/ance )    
requirem5ts t ! ,regi/] ( ,copyrights   
%all e/abli% by regulation4  7ii7       
,unless reject$ 9 writ+ by ! me*anical  
lic5s+ collective )9 #cj cal5d> days    
aft] receipt1 ! blanket lic5se %all be  
effective z ( ! date ! notice ( lic5se 0
 s5t by ! digital music provid] z %[n by
 a physical or electronic record4  7iii7
 ,a notice ( lic5se may only be reject$ 
by ! me*anical lic5s+ collective if--   
7,i7 ! digital music provid] or notice (
 lic5se does n meet ! requirem5ts ( ?is 
section or applicable regulations1 9 :i*
 case ! requirem5ts at issue %all be    
specifi$ ) reasonable p>ticul>ity 9 !   
notice ( rejection2 or  7,,ii7 ! digital
 music provid] has _h a blanket lic5se  
t]m9at$ by ! me*anical lic5s+ collective
 )9 ! pa/ #c ye>s pursuant to p>agraph  
7#d77;,e74  7iv7 ,if a notice ( lic5se  
is reject$ "u clause 7iii77,i71 !       
digital music provid] %all h #cj cal5d> 
days aft] receipt ( ! notice ( rejection
 to cure any defici5cy & submit an am5d$

 notice ( lic5se to ! me*anical lic5s+  
collective4 ,if ! defici5cy has be5     
cur$1 ! me*anical lic5s+ collective %all
 s confirm 9 writ+1 & ! lic5se %all be  
effective z ( ! date t ! orig9al notice 
( lic5se 0 provid$ by ! digital music   
provid]4  7v7 ,a digital music provid] t
 believes a notice ( lic5se 0 improp]ly 
reject$ by ! me*anical lic5s+ collective
 may seek review ( su* rejection 9      
,f$]al di/rict c\rt4 ,! di/rict c\rt    
%all det]m9e ! matt] de novo bas$ on !  
record be=e ! me*anical lic5s+          
collective & any additional evid5ce     
pres5t$ by ! p>ties4  7,b7 ,blanket     
lic5se effective date ,blanket lic5ses  
%all be made available by ! me*anical   
lic5s+ collective on & aft] ! lic5se    
availability date4 ,no su* lic5se %all  
be effective prior to ! lic5se          
availability date4  7#c7 ,me*anical     
lic5s+ collective  7,a7 ,9 g5]al ,!     
me*anical lic5s+ collective %all be a   
s+le entity t-- 7i7 is a nonpr(it1 n    
own$ by any o!r entity1 t is creat$ by  

copyright own]s to c>ry out             
responsibilities "u ?is subsection2     
7ii7 is endors$ by & enjoys sub/antial  
support f musical "w copyright own]s t  
toge!r repres5t ! greate/ p]c5tage ( !  
lic5sor m>ket = uses ( su* works 9 cov]$
 activities1 z measur$ ov] ! prec$+ #c  
full cal5d> ye>s2  7iii7 is able to     
demon/rate to ! ,regi/] ( ,copyrights t 
x has1 or w h prior to ! lic5se         
availability date1 ! adm9i/rative &     
te*nological capabilities to p]=m !     
requir$ functions ( ! me*anical lic5s+  
collective "u ?is subsection2 &  7iv7   
has be5 designat$ by ! ,regi/] (        
,copyrights 9 accordance ) subp>agraph  
7,b74  7,b7 ,designation ( me*anical    
lic5s+ collective  7i7 ,initial         
designation ,! ,regi/] ( ,copyrights    
%all initially designate ! me*anical    
lic5s+ collective )9 #i mon?s aft] !    
enactm5t date z foll[s3  7,i7 ,)9 #ij   
cal5d> days aft] ! enactm5t date1 !     
,regi/] %all publi% notice 9 ! ,f$]al   
,regi/] solicit+ in=mation to assi/ 9   

id5tify+ ! appropriate entity to s]ve z 
! me*anical lic5s+ collective1 includ+ !
 "n & affiliation ( ea* memb] ( ! bo>d (
 directors describ$ "u subp>agraph      
7,d77i7 & ea* committee e/abli%$        
pursuant to clauses 7iii71 7iv71 & 7v7 (
 subp>agraph 7,d74  7,,ii7 ,aft] review+
 ! in=mation reque/$ "u subclause 7,i7 &
 mak+ a designation1 ! ,regi/] %all     
publi% notice 9 ! ,f$]al ,regi/] sett+  
=? ! id5tity ( & contact in=mation = !  
me*anical lic5s+ collective4  7ii7      
,p]iodic review ( designation ,foll[+ ! 
initial designation ( ! me*anical lic5s+
 collective1 ! ,regi/] %all1 e #e ye>s1 
beg9n+ ) ! fif? full cal5d> ye> to      
comm5ce aft] ! initial designation1     
publi% notice 9 ! ,f$]al ,regi/] 9 !    
mon? ( ,janu>y solicit+ in=mation       
conc]n+ :e!r ! exi/+ designation %\ld be
 cont9u$1 or a diff]5t entity meet+ !   
crit]ia describ$ 9 clauses 7i7 ?r\gh    
7iii7 ( subp>agraph 7,a7 %all be        
designat$4 ,foll[+ publication ( su*    
notice3 7,i7 ,! ,regi/] %all1 aft]      

review+ ! in=mation submitt$ & conduct+ 
additional proce$+s z appropriate1      
publi% notice 9 ! ,f$]al ,regi/] ( a    
cont9u+ designation or new designation (
 ! me*anical lic5s+ collective1 z ! case
 may be1 ) any new designation to be    
effective z ( ! fir/ day ( a mon? t is  
no less ?an #f mon?s & no long] ?an #i  
mon?s aft] ! date ( publication ( su*   
notice1 z specifi$ by ! ,regi/]4  7,,ii7
 ,if a new entity is designat$ z a      
me*anical lic5s+ collective1 ! ,regi/]  
%all adopt regulations to gov]n !       
transf] ( lic5ses1 funds1 records1 data1
 & adm9i/rative responsibilities f !    
exi/+ me*anical lic5s+ collective to !  
new entity4  7iii7 ,close/ alt]native   
designation ,if ! ,regi/] is unable to  
id5tify an entity t fulfills ea* ( !    
qualifications set =? 9 clauses 7i7     
?r\gh 7iii7 ( subp>agraph 7,a71 !       
,regi/] %all designate ! entity t mo/   
ne>ly fulfills su* qualifications =     
purposes ( c>ry+ out ! responsibilities 
( ! me*anical lic5s+ collective4  7,c7  

,au?orities & functions  7i7 ,9 g5]al ,!
 me*anical lic5s+ collective is au?oriz$
 to p]=m ! foll[+ functions1 subject to 
m p>ticul> requirem5ts z describ$ 9 ?is 
subsection3 7,i7 ,(f] & adm9i/] blanket 
lic5ses1 includ+ receipt ( notices (    
lic5se & reports ( usage f digital music
 provid]s4  7,,ii7 ,collect & di/ribute 
royalties f digital music provid]s =    
cov]$ activities4  7,,iii7 ,engage 9    
ef=ts to id5tify musical works 7& %>es (
 su* works7 embodi$ 9 p>ticul> s\nd     
record+s1 & to id5tify & locate !       
copyright own]s ( su* musical works 7&  
%>es ( su* works74  7,,iv7 ,ma9ta9 !    
musical works database & o!r in=mation  
relevant to ! adm9i/ration ( lic5s+     
activities "u ?is section4  7,v7        
,adm9i/] a process by :i* copyright     
own]s c claim own]%ip ( musical works 7&
 %>es ( su* works71 & a process by :i*  
royalties = works = :i* ! own] is n     
id5tifi$ or locat$ are equitably        
di/ribut$ to kn[n copyright own]s4      
7,,vi7 ,adm9i/] collections ( !         

adm9i/rative assessm5t f digital music  
provid]s & significant nonblanket       
lic5sees1 includ+ receipt ( notices (   
nonblanket activity4  7,,vii7 ,inve/ 9  
relevant res\rces1 & arrange = s]vices (
 outside v5dors & o!rs1 to support its  
activities4  7,,viii7 ,engage 9 legal & 
o!r ef=ts to en=ce rights & obligations 
"u ?is subsection1 includ+ by fil+      
bankruptcy pro(s ( claims = am\nts ow$  
"u lic5ses1 & act+ 9 coord9ation ) !    
digital lic5see coord9ator4  7,,ix7     
,initiate & p>ticipate 9 proce$+s be=e !
 ,copyright ,royalty ,judges to e/abli% 
! adm9i/rative assessm5t "u ?is         
subsection4  7,x7 ,initiate & p>ticipate
 9 proce$+s be=e ! ,copyright ,(fice )  
respect to activities "u ?is subsection4
  7,,xi7 ,ga!r & provide docum5tation = 
use 9 proce$+s be=e ! ,copyright        
,royalty ,judges to set rates & t]ms "u 
?is section4  7,,xii7 ,ma9ta9 records ( 
its activities & engage 9 & respond to  
audits describ$ "u ?is subsection4      
7,,xiii7 ,engage 9 su* o!r activities z 

may be necess>y or appropriate to       
fulfill its responsibilities "u ?is     
subsection4  7ii7 ,additional           
adm9i/rative activities ,subject to     
p>agraph 7#aa77;,c7 & clause 7iii71 !   
me*anical lic5s+ collective may also    
adm9i/]1 or assi/ 9 adm9i/]+1 volunt>y  
lic5ses issu$ by or individual d[nload  
lic5ses obta9$ f copyright own]s = uses 
( musical works1 = :i* ! me*anical      
lic5s+ collective %all *>ge reasonable  
fees = su* s]vices4  7iii7 ,re/riction  
conc]n+ public p]=mance rights ,!       
me*anical lic5s+ collective may1        
pursuant to clause 7ii71 provide        
adm9i/ration s]vices ) respect to       
volunt>y lic5ses t include ! "r ( public
 p]=mance 9 musical works1 b may n      
itself negotiate or grant lic5ses = ! "r
 ( public p]=mance 9 musical works1 &   
may n be ! exclusive or nonexclusive    
assignee or grantee ( ! "r ( public     
p]=mance 9 musical works4  7iv7         
,re/riction on lobby+ ,! me*anical      
lic5s+ collective may n engage 9        

gov]nm5t lobby+ activities1 b may engage
 9 ! activities describ$ 9 subclauses   
7,,ix71 7,x71 & 7,,xi7 ( clause 7i74    
7,d7 ,gov]nance  7i7 ,bo>d ( directors  
,! me*anical lic5s+ collective %all h a 
bo>d ( directors consi/+ ( #ad vot+     
memb]s & #c nonvot+ memb]s1 z foll[s3   
7,i7 ,t5 vot+ memb]s %all be            
repres5tatives ( music publi%]s to :i*  
songwrit]s h assign$ exclusive rights ( 
reproduction & di/ribution ( musical    
works ) respect to cov]$ activities & no
 su* music publi%] memb] may be own$ by1
 or "u common control )1 any o!r bo>d   
memb]4  7,,ii7 ,f\r vot+ memb]s %all be 
pr(essional songwrit]s :o h reta9$ &    
ex]cise exclusive rights ( reproduction 
& di/ribution ) respect to cov]$        
activities ) respect to musical works !y
 h au?or$4  7,,iii7 ,"o nonvot+ memb]   
%all be a repres5tative ( ! nonpr(it    
trade association ( music publi%]s t    
repres5ts ! greate/ p]c5tage ( ! lic5sor
 m>ket = uses ( musical works 9 cov]$   
activities1 z measur$ ov] ! prec$+ #c   

full cal5d> ye>s4  7,,iv7 ,"o nonvot+   
memb] %all be a repres5tative ( !       
digital lic5see coord9ator1 provid$ t a 
digital lic5see coord9ator has be5      
designat$ pursuant to p>agraph          
7#e77;,b74 ,o!rwise1 ! nonvot+ memb]    
%all be ! nonpr(it trade association (  
digital lic5sees t repres5ts ! greate/  
p]c5tage ( ! lic5see m>ket = uses (     
musical works 9 cov]$ activities1 z     
measur$ ov] ! prec$+ #c full cal5d>     
ye>s4  7,v7 ,"o nonvot+ memb] %all be a 
repres5tative ( a nationally recogniz$  
nonpr(it trade association ^: prim>y    
mission is advocacy on behalf (         
songwrit]s 9 ! ,unit$ ,/ates4  7ii7     
,bo>d meet+s ,! bo>d ( directors %all   
meet no less ?an two times p] ye> &     
discuss matt]s p]t95t to ! op]ations1   
includ+ ! me*anical lic5s+ collective   
budget4  7iii7 ,op]ations advisory      
committee ,! bo>d ( directors ( !       
me*anical lic5s+ collective %all e/abli%
 an op]ations advisory committee consi/+
 ( no few] ?an six memb]s to make       

recomm5dations to ! bo>d ( directors    
conc]n+ ! op]ations ( ! me*anical lic5s+
 collective1 includ+ ! effici5t inve/m5t
 9 & deploym5t ( in=mation te*nology &  
data res\rces4 ,su* committee %all h an 
equal numb] ( memb]s ( ! committee :o   
are-- 7,i7 musical "w copyright own]s :o
 are appo9t$ by ! bo>d ( directors ( !  
me*anical lic5s+ collective2 &  7,,ii7  
repres5tatives ( digital music provid]s 
:o are appo9t$ by ! digital lic5see     
coord9ator4  7iv7 ,unclaim$ royalties   
ov]sight committee ,! bo>d ( directors (
 ! me*anical lic5s+ collective %all     
e/abli% & appo9t an unclaim$ royalties  
ov]sight committee consi/+ ( #aj memb]s1
 #e ( :i* %all be musical "w copyright  
own]s & #e ( :i* %all be pr(essional    
songwrit]s ^: works are us$ 9 cov]$     
activities4  7v7 ,dispute resolution    
committee ,! bo>d ( directors ( !       
me*anical lic5s+ collective %all e/abli%
 & appo9t a dispute resolution committee
 consi/+ ( no few] ?an six memb]s1 :i*  
committee %all include an equal numb] ( 

repres5tatives ( musical "w copyright   
own]s & pr(essional songwrit]s4  7vi7   
,me*anical lic5s+ collective annual     
report ,n lat] ?an ,june #cj ( ea* ye>  
comm5c+ aft] ! lic5se availability date1
 ! me*anical lic5s+ collective %all po/1
 & make available onl9e = a p]iod ( at  
lea/ #c ye>s1 an annual report t sets =?
 h[ ! collective op]ates1 h[ royalties  
are collect$ & di/ribut$1 & ! collective
 total co/s = ! prec$+ cal5d> ye>4 ,at !
 "t ( po/+1 a copy ( ! report %all be   
provid$ to ! ,regi/] ( ,copyrights4     
7,e7 ,musical works database  7i7       
,e/abli%m5t & ma9t5ance ( database ,!   
me*anical lic5s+ collective %all e/abli%
 & ma9ta9 a database conta9+ in=mation  
relat+ to musical works 7& %>es ( su*   
works7 &1 to ! ext5t kn[n1 ! id5tity &  
location ( ! copyright own]s ( su* works
 7& %>es !re(7 & ! s\nd record+s 9 :i* !
 musical works are embodi$4 ,9 fur!rance
 ( ma9ta9+ su* database1 ! me*anical    
lic5s+ collective %all engage 9 ef=ts to
 id5tify ! musical works embodi$ 9      

p>ticul> s\nd record+s1 z well z to     
id5tify & locate ! copyright own]s ( su*
 works 7& %>es !re(71 & update su* data 
z appropriate4  7ii7 ,mat*$ works ,)    
respect to musical works 7& %>es !re(7 t
 h be5 mat*$ to copyright own]s1 !      
musical works database %all include--   
7,i7 ! title ( ! musical "w2  7,,ii7 !  
copyright own] ( ! "w 7or %>e !re(71 &  
su* own]'s own]%ip p]c5tage2  7,,iii7   
contact in=mation = su* copyright own]2 
7,,iv7 to ! ext5t reasonably available  
to ! me*anical lic5s+ collective--  7aa7
 ! int]national /&>d musical "w code = !
 "w2 &  7bb7 id5tify+ in=mation = s\nd  
record+s 9 :i* ! musical "w is embodi$1 
includ+ ! "n ( ! s\nd record+1 featur$  
arti/1 s\nd record+ copyright own]1     
produc]1 int]national /&>d record+ code1
 & o!r in=mation commonly us$ to assi/ 9
 associat+ s\nd record+s ) musical      
works2 &  7,v7 su* o!r in=mation z !    
,regi/] ( ,copyrights may prescribe by  
regulation4  7iii7 ,unmat*$ works ,)    
respect to unmat*$ musical works 7& %>es

 ( works7 9 ! database1 ! musical works 
database %all include--  7,i7 to ! ext5t
 reasonably available to ! me*anical    
lic5s+ collective-- 7aa7 ! title ( !    
musical "w2  7bb7 ! own]%ip p]c5tage =  
:i* an own] has n be5 id5tifi$2  7cc7 if
 a copyright own] has be5 id5tifi$ b n  
locat$1 ! id5tity ( su* own] & su*      
own]'s own]%ip p]c5tage2  7dd7 id5tify+ 
in=mation = s\nd record+s 9 :i* ! "w is 
embodi$1 includ+ s\nd record+ "n1       
featur$ arti/1 s\nd record+ copyright   
own]1 produc]1 int]national /&>d record+
 code1 & o!r in=mation commonly us$ to  
assi/ 9 associat+ s\nd record+s )       
musical works2 &  7ee7 any additional   
in=mation report$ to ! me*anical lic5s+ 
collective t may assi/ 9 id5tify+ ! "w2 
&  7,,ii7 su* o!r in=mation relat+ to ! 
id5tity & own]%ip ( musical works 7&    
%>es ( su* works7 z ! ,regi/] (         
,copyrights may prescribe by regulation4
  7iv7 ,s\nd record+ in=mation ,ea*     
musical "w copyright own] ) any musical 
"w li/$ 9 ! musical works database %all 

engage 9 comm]cially reasonable ef=ts to
 deliv] to ! me*anical lic5s+           
collective1 includ+ = use 9 ! musical   
works database1 to ! ext5t su* in=mation
 is n !n available 9 ! database1        
in=mation reg>d+ ! names ( ! s\nd       
record+s 9 :i* t copyright own]'s       
musical works 7or %>es !re(7 are        
embodi$1 to ! ext5t practicable4  7v7   
,accessibility ( database ,! musical    
works database %all be made available to
 memb]s ( ! public 9 a se>*able1 onl9e  
=mat1 free ( *>ge4 ,! me*anical lic5s+  
collective %all make su* database       
available 9 a bulk1 ma*9e-readable =mat1
 ?r\gh a widely available s(tw>e        
application1 to ! foll[+ entities3 7,i7 
,digital music provid]s op]at+ "u !     
au?ority ( valid notices ( lic5se1 free 
( *>ge4  7,,ii7 ,significant nonblanket 
lic5sees 9 compliance ) _! obligations  
"u p>agraph 7#f71 free ( *>ge4  7,,iii7 
,au?oriz$ v5dors ( ! entities describ$ 9
 subclauses 7,i7 & 7,,ii71 free ( *>ge4 
7,,iv7 ,! ,regi/] ( ,copyrights1 free ( 

*>ge 7b ! ,regi/] %all n treat su*      
database or any in=mation !re9 z a      
,gov]nm5t record74  7,v7 ,any memb] ( ! 
public1 = a fee n to exce$ ! m>g9al co/ 
to ! me*anical lic5s+ collective (      
provid+ ! database to su* p]son4  7vi7  
,additional requirem5ts ,! ,regi/] (    
,copyrights %all e/abli% requirem5ts by 
regulations to ensure ! usability1      
int]op]ability1 & usage re/rictions ( ! 
musical works database4  7,f7 ,notices (
 lic5se & nonblanket activity  7i7      
,notices ( lic5ses ,! me*anical lic5s+  
collective %all receive1 review1 &      
confirm or reject notices ( lic5se f    
digital music provid]s1 z provid$ 9     
p>agraph 7#b77;,a74 ,! collective %all  
ma9ta9 a curr5t1 publicly accessible li/
 ( blanket lic5ses t includes contact   
in=mation = ! lic5sees & ! effective    
dates ( su* lic5ses4  7ii7 ,notices (   
nonblanket activity ,! me*anical lic5s+ 
collective %all receive notices (       
nonblanket activity f significant       
nonblanket lic5sees1 z provid$ 9        

p>agraph 7#f77;,a74 ,! collective %all  
ma9ta9 a curr5t1 publicly accessible li/
 ( notices ( nonblanket activity t      
includes contact in=mation = significant
 nonblanket lic5sees & ! dates ( receipt
 ( su* notices4  7,g7 ,collection &     
di/ribution ( royalties  7i7 ,9 g5]al   
,^u receiv+ reports ( usage & paym5ts ( 
royalties f digital music provid]s =    
cov]$ activities1 ! me*anical lic5s+    
collective %all--  7,i7 engage 9 ef=ts  
to-- 7aa7 id5tify ! musical works       
embodi$ 9 s\nd record+s reflect$ 9 su*  
reports1 & ! copyright own]s ( su*      
musical works 7& %>es !re(72  7bb7      
confirm uses ( musical works subject to 
volunt>y lic5ses & individual d[nload   
lic5ses1 & ! correspond+ pro rata am\nts
 to be d$uct$ f royalties t w\ld o!rwise
 be due "u ! blanket lic5se2 &  7cc7    
confirm prop] paym5t ( royalties due2   
7,,ii7 di/ribute royalties to copyright 
own]s 9 accordance ) ! usage & o!r      
in=mation conta9$ 9 su* reports1 z well 
z ! own]%ip & o!r in=mation conta9$ 9 ! 

records ( ! collective2 &  7,,iii7      
deposit into an int]e/-be>+ acc\nt1 z   
provid$ 9 subp>agraph 7,h77ii71         
royalties t _c be di/ribut$ due to--    
7aa7 an inability to id5tify or locate a
 copyright own] ( a musical "w 7or %>e  
!re(72 or  7bb7 a p5d+ dispute be=e !   
dispute resolution committee ( !        
me*anical lic5s+ collective4  7ii7 ,o!r 
collection ef=ts ,any royalties recov]$ 
by ! me*anical lic5s+ collective z a    
result ( ef=ts to en=ce rights or       
obligations "u a blanket lic5se1 includ+
 ?r\gh a bankruptcy proce$+ or o!r legal
 action1 %all be di/ribut$ to copyright 
own]s bas$ on available usage in=mation 
& 9 accordance ) ! proc$ures describ$ 9 
subclauses 7,i7 & 7,,ii7 ( clause 7i71  
on a pro rata basis 9 proportion to !   
ov]all p]c5tage recov]y ( ! total       
royalties ow$1 ) any pro rata %>e (     
royalties t _c be di/ribut$ deposit$ 9  
an int]e/-be>+ acc\nt z provid$ 9       
subp>agraph 7,h77ii74  7,h7 ,hold+ (    
accru$ royalties  7i7 ,hold+ p]iod ,!   

me*anical lic5s+ collective %all hold   
accru$ royalties associat$ ) p>ticul>   
musical works 7& %>es ( works7 t rema9  
unmat*$ = a p]iod ( at lea/ #c ye>s aft]
 ! date on :i* ! funds 7 receiv$ by !   
me*anical lic5s+ collective1 or at lea/ 
#c ye>s aft] ! date on :i* !y 7 accru$  
by a digital music provid] t subsequ5tly
 transf]r$ su* funds to ! me*anical     
lic5s+ collective pursuant to p>agraph  
7#aj77;,b71 :i*ev] p]iod expires soon]4 
7ii7 ,int]e/-be>+ acc\nt ,accru$        
royalties = unmat*$ works 7& %>es !re(7 
%all be ma9ta9$ by ! me*anical lic5s+   
collective 9 an int]e/-be>+ acc\nt t    
e>ns mon?ly int]e/ at ! ,f$]al1 %ort-t]m
 rate1 su* int]e/ to accrue = ! b5efit (
 copyright own]s entitl$ to paym5t ( su*
 accru$ royalties4  7,i7 ,musical works 
claim+ process ,! me*anical lic5s+      
collective %all publicize ! exi/5ce (   
accru$ royalties = unmat*$ musical works
 7& %>es ( su* works7 )9 #f mon?s (     
receiv+ a transf] ( accru$ royalties =  
su* works by publicly li/+ ! works & !  

proc$ures by :i* copyright own]s may    
id5tify !mselves & provide own]%ip1     
contact1 & o!r relevant in=mation to !  
me*anical lic5s+ collective 9 ord] to   
receive paym5t ( accru$ royalties4 ,:5 a
 copyright own] ( an unmat*$ "w 7or %>e 
( a "w7 has be5 id5tifi$ & locat$ 9     
accordance ) ! proc$ures ( ! me*anical  
lic5s+ collective1 ! collective %all--  
7i7 update ! musical works database &   
its o!r records accord+ly2 &  7ii7      
provid$ t accru$ royalties = ! musical  
"w 7or %>e !re(7 h n yet be5 includ$ 9 a
 di/ribution pursuant to subp>agraph    
7,j77i71 pay su* accru$ royalties & a   
proportionate am\nt ( accru$ int]e/     
associat$ ) t "w 7or %>e !re(7 to !     
copyright own]1 accompani$ by a         
cumulative /atem5t ( acc\nt reflect+    
usage ( su* "w & accru$ royalties bas$  
on in=mation provid$ by digital music   
provid]s to ! me*anical lic5s+          
collective4  7,j7 ,di/ribution (        
unclaim$ accru$ royalties  7i7          
,di/ribution proc$ures ,aft] !          

expiration ( ! prescrib$ hold+ p]iod =  
accru$ royalties provid$ 9 p>agraph     
7,h77i71 ! me*anical lic5s+ collective  
%all di/ribute su* accru$ royalties1    
along ) a proportionate %>e ( accru$    
int]e/1 to copyright own]s id5tifi$ 9 ! 
records ( ! collective1 subject to !    
foll[+ requirem5ts1 & 9 accordance ) !  
policies & proc$ures e/abli%$ "u clause 
7ii73 7,i7 ,! fir/ su* di/ribution %all 
occur on or aft] ,july #a ( ! fir/ full 
cal5d> ye> to comm5ce aft] ! lic5se     
availability date1 ) at lea/ "o su*     
di/ribution to take place dur+ ea*      
cal5d> ye> !reaft]4  7,,ii7 ,copyright  
own]s' paym5t %>es = unclaim$ accru$    
royalties = p>ticul> report+ p]iods %all
 be det]m9$ 9 a transp>5t & equitable   
mann] bas$ on data indicat+ ! relative  
m>ket %>es ( su* copyright own]s z      
reflect$ by royalty paym5ts made by     
digital music provid]s = cov]$          
activities = ! p]iods 9 "q1 includ+1 9  
addition to royalty paym5ts made to !   
me*anical lic5s+ collective1 royalty    

paym5ts made to copyright own]s "u      
volunt>y lic5ses & individual d[nload   
lic5ses = cov]$ activities1 to ! ext5t  
su* in=mation is available to !         
me*anical lic5s+ collective4 ,9         
fur!rance ( ! det]m9ation ( equitable   
m>ket %>es "u ?is subp>agraph-- 7aa7 !  
me*anical lic5s+ collective may require 
copyright own]s seek+ di/ributions (    
unclaim$ accru$ royalties to provide1 or
 direct ! provision (1 in=mation conc]n+
 royalties receiv$ "u volunt>y lic5ses &
 individual d[nload lic5ses = cov]$     
activities2 &  7bb7 ! me*anical lic5s+  
collective %all take appropriate /eps to
 safegu>d ! confid5tiality & security ( 
f9ancial & o!r s5sitive data us$ to     
compute m>ket %>es 9 accordance ) !     
confid5tiality provisions prescrib$ by !
 ,regi/] ( ,copyrights "u p>agraph      
7#ab77;,c74  7ii7 ,e/abli%m5t (         
di/ribution policies ,! unclaim$        
royalties ov]sight committee e/abli%$ "u
 p>agraph 7#c77;,d77iv7 %all e/abli%    
policies & proc$ures = ! di/ribution (  

unclaim$ accru$ royalties & accru$      
int]e/ 9 accordance ) ?is subp>agraph1  
includ+ ! provision ( usage data to     
copyright own]s to allocate paym5ts &   
cr$its to songwrit]s pursuant to clause 
7iv71 subject to ! approval ( ! bo>d (  
directors ( ! me*anical lic5s+          
collective4  7iii7 ,advance notice (    
di/ributions ,! me*anical lic5s+        
collective %all publicize a p5d+        
di/ribution ( unclaim$ accru$ royalties 
& accru$ int]e/ at lea/ #ij cal5d> days 
9 advance ( su* di/ribution4  7iv7      
,songwrit] paym5ts ,copyright own]s t   
receive a di/ribution ( unclaim$ accru$ 
royalties & accru$ int]e/ %all pay or   
cr$it a portion to songwrit]s 7or !     
au?oriz$ ag5ts ( songwrit]s7 on ^:      
behalf ! copyright own]s lic5se or      
adm9i/] musical works = cov]$           
activities1 9 accordance ) applicable   
contractual t]ms1 b not)/&+ any agreem5t
 to ! contr>y--  7,i7 su* paym5ts &     
cr$its to songwrit]s %all be allocat$ 9 
proportion to report$ usage ( individual

 musical works by digital music provid]s
 dur+ ! report+ p]iods cov]$ by !       
di/ribution f ! me*anical lic5s+        
collective2 &  7,,ii7 9 no case %all !  
paym5t or cr$it to an individual        
songwrit] be less ?an #ej p]c5t ( !     
paym5t receiv$ by ! copyright own]      
attributable to usage ( musical works   
7or %>es ( works7 ( t songwrit]4  7,k7  
,dispute resolution ,! dispute          
resolution committee e/abli%$ "u        
p>agraph 7#c77;,d77v7 %all address &    
resolve 9 a timely & equitable mann]    
disputes among copyright own]s relat+ to
 own]%ip int]e/s 9 musical works lic5s$ 
"u ?is section & allocation &           
di/ribution ( royalties by ! me*anical  
lic5s+ collective1 accord+ to a process 
approv$ by ! bo>d ( directors ( !       
me*anical lic5s+ collective4 ,su*       
process-- 7i7 %all include a me*anism to
 hold disput$ funds 9 accordance ) !    
requirem5ts describ$ 9 subp>agraph      
7,h77ii7 p5d+ resolution ( ! dispute2 & 
7ii7 except z provid$ 9 p>agraph        

7#aa77;,d71 %all n affect any legal or  
equitable rights or rem$ies available to
 any copyright own] or songwrit] conc]n+
 own]%ip (1 & entitlem5t to royalties =1
 a musical "w4  7,l7 ,v]ification (     
paym5ts by me*anical lic5s+ collective  
7i7 ,v]ification process ,a copyright   
own] entitl$ to receive paym5ts (       
royalties = cov]$ activities f !        
me*anical lic5s+ collective may1        
individually or ) o!r copyright own]s1  
conduct an audit ( ! me*anical lic5s+   
collective to v]ify ! accuracy ( royalty
 paym5ts by ! me*anical lic5s+          
collective to su* copyright own]1 z     
foll[s3  7,i7 ,a copyright own] may     
audit ! me*anical lic5s+ collective only
 once 9 a ye> = any or all ( ! prior #c 
cal5d> ye>s1 & may n audit records = any
 cal5d> ye> m ?an once4  7,,ii7 ,! audit
 %all be conduct$ by a qualifi$ auditor1
 :o %all p]=m ! audit dur+ ! ord9>y     
c\rse ( bus9ess by exam9+ ! books1      
records1 & data ( ! me*anical lic5s+    
collective1 accord+ to g5]ally accept$  

audit+ /&>ds & subject to applicable    
confid5tiality requirem5ts prescrib$ by 
! ,regi/] ( ,copyrights "u p>agraph     
7#ab77;,c74  7,,iii7 ,! me*anical lic5s+
 collective %all make su* books1        
records1 & data available to ! qualifi$ 
auditor & respond to reasonable reque/s 
= relevant in=mation1 & %all use        
comm]cially reasonable ef=ts to         
facilitate access to relevant in=mation 
ma9ta9$ by ?ird p>ties4  7,,iv7 ,to     
comm5ce ! audit1 any copyright own] %all
 file ) ! ,copyright ,(fice a notice (  
int5t to conduct an audit ( ! me*anical 
lic5s+ collective1 id5tify+ ! p]iod ( "t
 to be audit$1 & %all simultane\sly     
deliv] a copy ( su* notice to !         
me*anical lic5s+ collective4 ,! ,regi/] 
( ,copyrights %all cause ! notice (     
audit to be publi%$ 9 ! ,f$]al ,regi/]  
)9 #de cal5d> days aft] receipt4  7,v7  
,! qualifi$ auditor %all det]m9e !      
accuracy ( royalty paym5ts1 includ+ :e!r
 an und]paym5t or ov]paym5t ( royalties 
0 made by ! me*anical lic5s+ collective 

to ea* audit+ copyright own]1 b be=e    
provid+ a f9al audit report to any su*  
copyright own]1 ! qualifi$ auditor %all 
provide a t5tative draft ( ! report to !
 me*anical lic5s+ collective & all[ !   
me*anical lic5s+ collective a reasonable
 opportunity to respond to ! f9d+s1     
includ+ by cl>ify+ issues & correct+    
factual errors4  7,,vi7 ,! audit+       
copyright own] or own]s %all be> ! co/ (
 ! audit4 ,9 case ( an und]paym5t to any
 copyright own]1 ! me*anical lic5s+     
collective %all pay ! am\nts ( any su*  
und]paym5t to su* audit+ copyright own]1
 z appropriate4 ,9 case ( an ov]paym5t  
by ! me*anical lic5s+ collective1 !     
me*anical lic5s+ collective may debit ! 
acc\nt ( ! audit+ copyright own] or     
own]s = su* ov]paid am\nts1 or su*      
own]7s7 %all refund ov]paid am\nts to ! 
me*anical lic5s+ collective1 z          
appropriate4  7ii7 ,alt]native          
v]ification proc$ures ,no?+ 9 ?is       
subp>agraph %all preclude a copyright   
own] & ! me*anical lic5s+ collective f  

agree+ to audit proc$ures diff]5t f ^?  
describ$ h]e91 b a notice ( ! audit %all
 be provid$ to & publi%$ by ! ,copyright
 ,(fice z describ$ 9 clause 7i77,,iv74  
7,m7 ,records ( me*anical lic5s+        
collective  7i7 ,records ma9t5ance ,!   
me*anical lic5s+ collective %all ensure 
t all mat]ial records ( its op]ations1  
includ+ ^? relat+ to notices ( lic5se1 !
 adm9i/ration ( its claims process1     
reports ( usage1 royalty paym5ts1       
receipt & ma9t5ance ( accru$ royalties1 
royalty di/ribution processes1 & legal  
matt]s1 are pres]v$ & ma9ta9$ 9 a secure
 & reliable mann]1 ) appropriate        
comm]cially reasonable safegu>ds aga9/  
unau?oriz$ access1 copy+1 & disclosure1 
& subject to ! confid5tiality           
requirem5ts prescrib$ by ! ,regi/] (    
,copyrights "u p>agraph 7#ab77;,c7 = a  
p]iod ( no less ?an #g ye>s aft] ! date 
( creation or receipt1 :i*ev] occurs    
lat]4  7ii7 ,records access ,! me*anical
 lic5s+ collective %all provide prompt  
access to electronic & o!r records      

p]ta9+ to ! adm9i/ration ( a copyright  
own]'s musical works ^u reasonable      
writt5 reque/ ( su* own] or ! own]'s    
au?oriz$ repres5tative4  7#d7 ,t]ms &   
conditions ( blanket lic5se ,a blanket  
lic5se is subject to1 & condition$ ^u1 !
 foll[+ requirem5ts3  7,a7 ,royalty     
report+ & paym5ts  7i7 ,mon?ly reports &
 paym5t ,a digital music provid] %all   
report & pay royalties to ! me*anical   
lic5s+ collective "u ! blanket lic5se on
 a mon?ly basis 9 accordance ) clause   
7ii7 & subsection 7c77#b77;,i71 b !     
mon?ly report+ %all be due #de cal5d>   
days1 r ?an #bj cal5d> days1 aft] ! end 
( ! mon?ly report+ p]iod4  7ii7 ,data to
 be report$ ,9 report+ usage ( musical  
works to ! me*anical lic5s+ collective1 
a digital music provid] %all provide    
usage data = musical works us$ "u !     
blanket lic5se & usage data = musical   
works us$ 9 cov]$ activities "u volunt>y
 lic5ses & individual d[nload lic5ses4  
,9 ! report ( usage1 ! digital music    
provid] %all--  7,i7 ) respect to ea*   

s\nd record+ embody+ a musical "w-- 7aa7
 provide id5tify+ in=mation = ! s\nd    
record+1 includ+ s\nd record+ "n1       
featur$ arti/ &1 to ! ext5t acquir$ by !
 digital music provid] 9 connection )   
its use ( s\nd record+s ( musical works 
to engage 9 cov]$ activities1 includ+   
pursuant to subp>agraph 7,b71 produc]1  
int]national /&>d record+ code1 & o!r   
in=mation commonly us$ 9 ! indu/ry to   
id5tify s\nd record+s & mat* !m to !    
musical works ! s\nd record+s embody2   
7bb7 to ! ext5t acquir$ by ! digital    
music provid] 9 ! metadata 9 connection 
) its use ( s\nd record+s ( musical     
works to engage 9 cov]$ activities1     
includ+ pursuant to subp>agraph 7,b71   
provide in=mation conc]n+ au?or%ip &    
own]%ip ( ! applicable rights 9 !       
musical "w embodi$ 9 ! s\nd record+     
7includ+ ea* songwrit]1 publi%] "n1 &   
respective own]%ip %>e7 & ! int]national
 /&>d musical "w code2 &  7cc7 provide !
 numb] ( digital phonorecord deliv]ies (
 ! s\nd record+1 includ+ limit$ d[nloads

 & int]active /reams2  7,,ii7 id5tify & 
provide contact in=mation = all musical 
"w copyright own]s = works embodi$ 9    
s\nd record+s z to :i* a volunt>y       
lic5se1 r ?an ! blanket lic5se1 is 9    
effect ) respect to ! uses be+ report$2 
&  7,,iii7 provide su* o!r in=mation z !
 ,regi/] ( ,copyrights %all require by  
regulation4  7iii7 ,=mat & ma9t5ance (  
reports ,reports ( usage provid$ by     
digital music provid]s to ! me*anical   
lic5s+ collective %all be 9 a           
ma*9e-readable =mat t is compatible ) ! 
in=mation te*nology sy/ems ( ! me*anical
 lic5s+ collective & meets ! requirem5ts
 ( regulations adopt$ by ! ,regi/] (    
,copyrights4 ,! ,regi/] %all also adopt 
regulations sett+ =? requirem5ts "u :i* 
records ( use %all be ma9ta9$ & made    
available to ! me*anical lic5s+         
collective by digital music provid]s    
engag$ 9 cov]$ activities "u a blanket  
lic5se4  7iv7 ,adoption ( regulations ,!
 ,regi/] %all adopt regulations--  7,i7 
sett+ =? requirem5ts "u :i* records (   

use %all be ma9ta9$ & made available to 
! me*anical lic5s+ collective by digital
 music provid]s engag$ 9 cov]$          
activities "u a blanket lic5se2 &       
7,,ii7 reg>d+ adju/m5ts to reports (    
usage by digital music provid]s1 includ+
 me*anisms to acc\nt = ov]paym5t &      
und]paym5t ( royalties 9 prior p]iods4  
7,b7 ,collection ( s\nd record+         
in=mation ,a digital music provid] %all 
engage 9 good-fai?1 comm]cially         
reasonable ef=ts to obta9 f copyright   
own]s ( s\nd record+s made available    
?r\gh ! s]vice ( su* digital music      
provid]-- 7i7 s\nd record+ copyright    
own]s1 produc]s1 int]national /&>d      
record+ codes1 & o!r in=mation commonly 
us$ 9 ! indu/ry to id5tify s\nd record+s
 & mat* !m to ! musical works ! s\nd    
record+s embody2 &  7ii7 in=mation      
conc]n+ ! au?or%ip & own]%ip ( musical  
works1 includ+ songwrit]s1 publi%]      
names1 own]%ip %>es1 & int]national /&>d
 musical "w codes4  7,c7 ,paym5t (      
adm9i/rative assessm5t ,a digital music 

provid] & any significant nonblanket    
lic5see %all pay ! adm9i/rative         
assessm5t e/abli%$ "u p>agraph 7#g77;,d7
 9 accordance ) ?is subsection &        
applicable regulations4  7,d7           
,v]ification ( paym5ts by digital music 
provid]s  7i7 ,v]ification process ,!   
me*anical lic5s+ collective may conduct 
an audit ( a digital music provid]      
op]at+ "u ! blanket lic5se to v]ify !   
accuracy ( royalty paym5ts by ! digital 
music provid] to ! me*anical lic5s+     
collective z foll[s3 7,i7 ,! me*anical  
lic5s+ collective may comm5ce an audit (
 a digital music provid] no m ?an once 9
 any #c-;cal5d>-ye> p]iod to cov] a     
v]ification p]iod ( no m ?an ! #c full  
cal5d> ye>s prec$+ ! date ( comm5cem5t (
 ! audit1 & su* audit may n audit       
records = any su* #c-ye> v]ification    
p]iod m ?an once4  7,,ii7 ,! audit %all 
be conduct$ by a qualifi$ auditor1 :o   
%all p]=m ! audit dur+ ! ord9>y c\rse ( 
bus9ess by exam9+ ! books1 records1 &   
data ( ! digital music provid]1 accord+ 

to g5]ally accept$ audit+ /&>ds &       
subject to applicable confid5tiality    
requirem5ts prescrib$ by ! ,regi/] (    
,copyrights "u p>agraph 7#ab77;,c74     
7,,iii7 ,! digital music provid] %all   
make su* books1 records1 & data         
available to ! qualifi$ auditor &       
respond to reasonable reque/s = relevant
 in=mation1 & %all use comm]cially      
reasonable ef=ts to provide access to   
relevant in=mation ma9ta9$ ) respect to 
a digital music provid] by ?ird p>ties4 
7,,iv7 ,to comm5ce ! audit1 ! me*anical 
lic5s+ collective %all file ) !         
,copyright ,(fice a notice ( int5t to   
conduct an audit ( ! digital music      
provid]1 id5tify+ ! p]iod ( "t to be    
audit$1 & %all simultane\sly deliv] a   
copy ( su* notice to ! digital music    
provid]4 ,! ,regi/] ( ,copyrights %all  
cause ! notice ( audit to be publi%$ 9 !
 ,f$]al ,regi/] )9 #de cal5d> days aft] 
receipt4  7,v7 ,! qualifi$ auditor %all 
det]m9e ! accuracy ( royalty paym5ts1   
includ+ :e!r an und]paym5t or ov]paym5t 

( royalties 0 made by ! digital music   
provid] to ! me*anical lic5s+           
collective1 b be=e provid+ a f9al audit 
report to ! me*anical lic5s+ collective1
 ! qualifi$ auditor %all provide a      
t5tative draft ( ! report to ! digital  
music provid] & all[ ! digital music    
provid] a reasonable opportunity to     
respond to ! f9d+s1 includ+ by cl>ify+  
issues & correct+ factual errors4       
7,,vi7 ,! me*anical lic5s+ collective   
%all pay ! co/ ( ! audit1 unless !      
qualifi$ auditor det]m9es t !re 0 an    
und]paym5t by ! digital music provid] ( 
#aj p]c5t or m1 9 :i* case ! digital    
music provid] %all be> ! reasonable co/s
 ( ! audit1 9 addition to pay+ ! am\nt (
 any und]paym5t to ! me*anical lic5s+   
collective4 ,9 case ( an ov]paym5t by ! 
digital music provid]1 ! me*anical      
lic5s+ collective %all provide a cr$it  
to ! acc\nt ( ! digital music provid]4  
7,,vii7 ,a digital music provid] may n  
ass]t section #ejg or any o!r ,f$]al or 
,/ate /atute ( limitations1 doctr9e (   

la*es or e/oppel1 or simil> provision z 
a def5se to a legal action aris+ f an   
audit "u ?is subp>agraph if su* legal   
action is comm5c$ no m ?an #f ye>s aft] 
! comm5cem5t ( ! audit t is ! basis =   
su* action4  7ii7 ,alt]native           
v]ification proc$ures ,no?+ 9 ?is       
subp>agraph %all preclude ! me*anical   
lic5s+ collective & a digital music     
provid] f agree+ to audit proc$ures     
diff]5t f ^? describ$ h]e91 b a notice (
 ! audit %all be provid$ to & publi%$ by
 ! ,copyright ,(fice z describ$ 9 clause
 7i77,,iv74  7,e7 ,default "u blanket   
lic5se  7i7 ,conditions ( default ,a    
digital music provid] %all be 9 default 
"u a blanket lic5se if ! digital music  
provid]--  7,i7 fails to provide "o or m
 mon?ly reports ( usage to ! me*anical  
lic5s+ collective :5 due2  7,,ii7 fails 
to make a mon?ly royalty or late fee    
paym5t to ! me*anical lic5s+ collective 
:5 due1 9 all or mat]ial "p2  7,,iii7   
provides "o or m mon?ly reports ( usage 
to ! me*anical lic5s+ collective t1 on !

 :ole1 is or are mat]ially defici5t z a 
result ( inaccurate1 miss+1 or          
unreadable data1 :]e ! correct data 0   
available to ! digital music provid] &  
requir$ to be report$ "u ?is section &  
applicable regulations2  7,,iv7 fails to
 pay ! adm9i/rative assessm5t z requir$ 
"u ?is subsection & applicable          
regulations2 or  7,v7 aft] be+ provid$  
writt5 notice by ! me*anical lic5s+     
collective1 refuses to comply ) any o!r 
mat]ial t]m or condition ( ! blanket    
lic5se "u ?is section = a p]iod ( #fj   
cal5d> days or long]4  7ii7 ,notice (   
default & t]m9ation ,9 case ( a default 
by a digital music provid]1 ! me*anical 
lic5s+ collective may proce$ to t]m9ate 
! blanket lic5se ( ! digital music      
provid] z foll[s3  7,i7 ,! me*anical    
lic5s+ collective %all provide writt5   
notice to ! digital music provid]       
describ+ ) reasonable p>ticul>ity !     
default & advis+ t unless su* default is
 cur$ )9 #fj cal5d> days aft] ! date ( !
 notice1 ! blanket lic5se w             

automatically t]m9ate at ! end ( t      
p]iod4  7,,ii7 ,if ! digital music      
provid] fails to rem$y ! default )9 !   
#fj-;day p]iod ref]5c$ 9 subclause 7,i71
 ! lic5se %all t]m9ate )\t any fur!r    
action on ! "p ( ! me*anical lic5s+     
collective4 ,su* t]m9ation r5d]s ! mak+ 
( all digital phonorecord deliv]ies (   
all musical works 7& %>es !re(7 cov]$ by
 ! blanket lic5se = :i* ! royalty or    
adm9i/rative assessm5t has n be5 paid   
actionable z acts ( infr+em5t "u section
 #eja & subject to ! rem$ies provid$ by 
sections #ejb ?r\gh #ejf4  7iii7 ,notice
 to copyright own]s ,! me*anical lic5s+ 
collective %all provide writt5 notice ( 
any t]m9ation "u ?is subp>agraph to     
copyright own]s ( affect$ works4  7iv7  
,review by ,f$]al di/rict c\rt ,a       
digital music provid] t believes a      
blanket lic5se 0 improp]ly t]m9at$ by ! 
me*anical lic5s+ collective may seek    
review ( su* t]m9ation 9 ,f$]al di/rict 
c\rt4 ,! di/rict c\rt %all det]m9e !    
matt] de novo bas$ on ! record be=e !   

me*anical lic5s+ collective & any       
additional support+ evid5ce pres5t$ by !
 p>ties4  7#e7 ,digital lic5see         
coord9ator  7,a7 ,9 g5]al ,! digital    
lic5see coord9ator %all be a s+le entity
 t-- 7i7 is a nonpr(it1 n own$ by any   
o!r entity1 t is creat$ to c>ry out     
responsibilities "u ?is subsection2     
7ii7 is endors$ by & enjoys sub/antial  
support f digital music provid]s &      
significant nonblanket lic5sees t toge!r
 repres5t ! greate/ p]c5tage ( ! lic5see
 m>ket = uses ( musical works 9 cov]$   
activities1 z measur$ ov] ! prec$+ #c   
cal5d> ye>s2  7iii7 is able to          
demon/rate t x has1 or w h prior to !   
lic5se availability date1 ! adm9i/rative
 capabilities to p]=m ! requir$         
functions ( ! digital lic5see coord9ator
 "u ?is subsection2 &  7iv7 has be5     
designat$ by ! ,regi/] ( ,copyrights 9  
accordance ) subp>agraph 7,b74  7,b7    
,designation ( digital lic5see          
coord9ator  7i7 ,initial designation ,! 
,regi/] ( ,copyrights %all initially    

designate ! digital lic5see coord9ator  
)9 #i mon?s aft] ! enactm5t date1 9     
accordance ) ! same proc$ure describ$ = 
designation ( ! me*anical lic5s+        
collective 9 p>agraph 7#c77;,b77i74     
7ii7 ,p]iodic review ( designation      
,foll[+ ! initial designation ( !       
digital lic5see coord9ator1 ! ,regi/]   
%all1 e #e ye>s1 beg9n+ ) ! fif? full   
cal5d> ye> to comm5ce aft] ! initial    
designation1 det]m9e :e!r ! exi/+       
designation %\ld be cont9u$1 or a       
diff]5t entity meet+ ! crit]ia describ$ 
9 clauses 7i7 ?r\gh 7iii7 ( subp>agraph 
7,a7 %\ld be designat$1 9 accordance ) !
 same proc$ure describ$ = ! me*anical   
lic5s+ collective 9 p>agraph            
7#c77;,b77ii74  7iii7 ,inability to     
designate ,if ! ,regi/] is unable to    
id5tify an entity t fulfills ea* ( !    
qualifications describ$ 9 clauses 7i7   
?r\gh 7iii7 ( subp>agraph 7,a7 to s]ve z
 ! digital lic5see coord9ator1 ! ,regi/]
 may decl9e to designate a digital      
lic5see coord9ator4 ,! ,regi/]'s        

det]m9ation n to designate a digital    
lic5see coord9ator %all n negate or     
o!rwise affect any provision ( ?is      
subsection except to ! limit$ ext5t t a 
provision ref]5ces ! digital lic5see    
coord9ator4 ,9 su* case1 ! ref]5ce to ! 
digital lic5see coord9ator %all be )\t  
effect unless & until a new digital     
lic5see coord9ator is designat$4  7,c7  
,au?orities & functions  7i7 ,9 g5]al ,!
 digital lic5see coord9ator is au?oriz$ 
to p]=m ! foll[+ functions1 subject to m
 p>ticul> requirem5ts z describ$ 9 ?is  
subsection3 7,i7 ,e/abli% a gov]nance   
/ructure1 crit]ia = memb]%ip1 & any dues
 to be paid by its memb]s4  7,,ii7      
,engage 9 ef=ts to en=ce notice & paym5t
 obligations ) respect to ! adm9i/rative
 assessm5t1 includ+ by receiv+ in=mation
 f & coord9at+ ) ! me*anical lic5s+     
collective4  7,,iii7 ,initiate &        
p>ticipate 9 proce$+s be=e ! ,copyright 
,royalty ,judges to e/abli% !           
adm9i/rative assessm5t "u ?is           
subsection4  7,,iv7 ,initiate &         

p>ticipate 9 proce$+s be=e ! ,copyright 
,(fice ) respect to activities "u ?is   
subsection4  7,v7 ,ga!r & provide       
docum5tation = use 9 proce$+s be=e !    
,copyright ,royalty ,judges to set rates
 & t]ms "u ?is section4  7,,vi7 ,ma9ta9 
records ( its activities4  7,,vii7      
,engage 9 su* o!r activities z may be   
necess>y or appropriate to fulfill its  
responsibilities "u ?is subsection4     
7ii7 ,re/riction on lobby+ ,! digital   
lic5see coord9ator may n engage 9       
gov]nm5t lobby+ activities1 b may engage
 9 ! activities describ$ 9 subclauses   
7,,iii71 7,,iv71 & 7,v7 ( clause 7i74   
7#f7 ,requirem5ts = significant         
nonblanket lic5sees  7,a7 ,9 g5]al  7i7 
,notice ( activity ,n lat] ?an #de      
cal5d> days aft] ! lic5se availability  
date1 or #de cal5d> days aft] ! end ( ! 
fir/ full cal5d> mon? 9 :i* an entity   
initially qualifies z a significant     
nonblanket lic5see1 :i*ev] occurs lat]1 
a significant nonblanket lic5see %all   
submit a notice ( nonblanket activity to

 ! me*anical lic5s+ collective4 ,!      
notice ( nonblanket activity %all comply
 9 =m & sub/ance ) requirem5ts t !      
,regi/] ( ,copyrights %all e/abli% by   
regulation1 & a copy %all be made       
available to ! digital lic5see          
coord9ator4  7ii7 ,report+ & paym5t     
obligations ,! notice ( nonblanket      
activity submitt$ to ! me*anical lic5s+ 
collective %all be accompani$ by a      
report ( usage t conta9s ! in=mation    
describ$ 9 p>agraph 7#d77;,a77ii71 z    
well z any paym5t ( ! adm9i/rative      
assessm5t requir$ "u ?is subsection &   
applicable regulations4 ,!reaft]1       
subject to clause 7iii71 a significant  
nonblanket lic5see %all cont9ue to      
provide mon?ly reports ( usage1         
accompani$ by any requir$ paym5t ( !    
adm9i/rative assessm5t1 to ! me*anical  
lic5s+ collective4 ,su* reports &       
paym5ts %all be submitt$ n lat] ?an #de 
cal5d> days aft] ! end ( ! cal5d> mon?  
be+ report$4  7iii7 ,discont9uation (   
obligations ,an entity t has submitt$ a 

notice ( nonblanket activity to !       
me*anical lic5s+ collective t has ceas$ 
to qualify z a significant nonblanket   
lic5see may s notify ! collective 9     
writ+4 ,9 su* case1 z ( ! cal5d> mon? 9 
:i* su* notice is provid$1 su* entity   
%all no long] be requir$ to provide     
reports ( usage or pay ! adm9i/rative   
assessm5t1 b if su* entity lat]         
qualifies z a significant nonblanket    
lic5see1 su* entity %all aga9 be requir$
 to comply ) clauses 7i7 & 7ii74  7,b7  
,report+ by me*anical lic5s+ collective 
to digital lic5see coord9ator  7i7      
,mon?ly reports ( noncompliant lic5sees 
,! me*anical lic5s+ collective %all     
provide mon?ly reports to ! digital     
lic5see coord9ator sett+ =? any         
significant nonblanket lic5sees ( :i* ! 
collective is aw>e t h fail$ to comply )
 subp>agraph 7,a74  7ii7 ,treatm5t (    
confid5tial in=mation ,! me*anical      
lic5s+ collective & digital lic5see     
coord9ator %all take appropriate /eps to
 safegu>d ! confid5tiality & security ( 

f9ancial & o!r s5sitive data %>$ "u ?is 
subp>agraph1 9 accordance ) !           
confid5tiality requirem5ts prescrib$ by 
! ,regi/] ( ,copyrights "u p>agraph     
7#ab77;,c74  7,c7 ,legal en=cem5t ef=ts 
7i7 ,f$]al c\rt action ,%\ld ! me*anical
 lic5s+ collective or digital lic5see   
coord9ator become aw>e t a significant  
nonblanket lic5see has fail$ to comply )
 subp>agraph 7,a71 ei!r may comm5ce an  
action 9 ,f$]al di/rict c\rt = damages &
 injunctive relief4 ,if ! significant   
nonblanket lic5see is f\nd liable1 !    
c\rt %all1 abs5t a f9d+ ( excusable     
neglect1 aw>d damages 9 an am\nt equal  
to ?ree times ! total am\nt ( ! unpaid  
adm9i/rative assessm5t &1 not)/&+ any?+ 
to ! contr>y 9 section #eje1 reasonable 
attorney's fees & co/s1 z well z su* o!r
 relief z ! c\rt deems appropriate4 ,9  
all o!r cases1 ! c\rt %all aw>d relief z
 appropriate4 ,any recov]y ( damages    
%all be payable to ! me*anical lic5s+   
collective z an (fset to ! collective   
total co/s4  7ii7 ,/atute ( limitations 

= en=cem5t action ,any action describ$ 9
 ?is subp>agraph %all be comm5c$ )9 ! "t
 p]iod describ$ 9 section #ejg7;b74     
7iii7 ,o!r rights & rem$ies pres]v$ ,!  
ability ( ! me*anical lic5s+ collective 
or digital lic5see coord9ator to br+ an 
action "u ?is subp>agraph %all 9 no way 
alt]1 limit or negate any o!r "r or     
rem$y t may be available to any p>ty at 
law or 9 equity4  7#g7 ,fund+ (         
me*anical lic5s+ collective  7,a7 ,9    
g5]al ,! collective total co/s %all be  
fund$ by--  7i7 an adm9i/rative         
assessm5t1 z su* assessm5t is e/abli%$  
by ! ,copyright ,royalty ,judges        
pursuant to subp>agraph 7,d7 f "t to "t1
 to be paid by-- 7,i7 digital music     
provid]s t are engag$1 9 all or 9 "p1 9 
cov]$ activities pursuant to a blanket  
lic5se2 &  7,,ii7 significant nonblanket
 lic5sees2 &  7ii7 volunt>y             
contributions f digital music provid]s &
 significant nonblanket lic5sees z may  
be agre$ ) copyright own]s4  7,b7       
,volunt>y contributions  7i7 ,agreem5ts 

conc]n+ contributions ,except z provid$ 
9 clause 7ii71 volunt>y contributions by
 digital music provid]s & significant   
nonblanket lic5sees %all be det]m9$ by  
private negotiation & agreem5t1 & !     
foll[+ conditions apply3 7,i7 ,! date & 
am\nt ( ea* volunt>y contribution to !  
me*anical lic5s+ collective %all be     
docum5t$ 9 a writ+ sign$ by an au?oriz$ 
ag5t ( ! me*anical lic5s+ collective & !
 contribut+ p>ty4  7,,ii7 ,su* agreem5t 
%all be made available z requir$ 9      
proce$+s be=e ! ,copyright ,royalty     
,judges to e/abli% or adju/ !           
adm9i/rative assessm5t 9 accordance )   
applicable /atutory & regulatory        
provisions & rul+s ( ! ,copyright       
,royalty ,judges4  7ii7 ,treatm5t (     
contributions ,ea* su* volunt>y         
contribution %all be treat$ = purposes (
 an adm9i/rative assessm5t proce$+ z an 
(fset to ! collective total co/s t w\ld 
o!rwise be recov]$ ?r\gh ! adm9i/rative 
assessm5t4 ,any allocation or           
reallocation ( volunt>y contributions   

betwe5 or among individual digital music
 provid]s or significant nonblanket     
lic5sees %all be a matt] ( private      
negotiation & agreem5t among su* p>ties 
& outside ! scope ( ! adm9i/rative      
assessm5t proce$+4  7,c7 ,int]im        
application ( accru$ royalties ,9 ! ev5t
 t ! adm9i/rative assessm5t1 toge!r )   
any fund+ f volunt>y contributions z    
provid$ 9 subp>agraphs 7,a7 & 7,b71 is  
inadequate to cov] curr5t collective    
total co/s1 ! collective1 ) approval (  
its bo>d ( directors1 may apply unclaim$
 accru$ royalties on an int]im basis to 
defray su* co/s1 subject to future      
reimbursem5t ( su* royalties f future   
collections ( ! assessm5t4  7,d7        
,det]m9ation ( adm9i/rative assessm5t   
7i7 ,adm9i/rative assessm5t to cov]     
collective total co/s ,! adm9i/rative   
assessm5t %all be us$ solely &          
exclusively to fund ! collective total  
co/s4  7ii7 ,sep>ate proce$+ be=e       
copyright royalty judges ,! am\nt & t]ms
 ( ! adm9i/rative assessm5t %all be     

det]m9$ & e/abli%$ 9 a sep>ate &        
indep5d5t proce$+ be=e ! ,copyright     
,royalty ,judges1 accord+ to ! proc$ures
 describ$ 9 clauses 7iii7 & 7iv74 ,!    
adm9i/rative assessm5t det]m9$ 9 su*    
proce$+ %all-- 7,i7 be :olly indep5d5t (
 royalty rates & t]ms applicable to     
digital music provid]s1 :i* %all n be   
tak5 into consid]ation 9 any mann] 9    
e/abli%+ ! adm9i/rative assessm5t2      
7,,ii7 be e/abli%$ by ! ,copyright      
,royalty ,judges 9 an am\nt t is        
calculat$ to defray ! reasonable        
collective total co/s2  7,,iii7 be      
assess$ bas$ on usage ( musical works by
 digital music provid]s & significant   
nonblanket lic5sees 9 cov]$ activities  
"u bo? compulsory & nonblanket lic5ses2 
7,,iv7 may be 9 ! =m ( a p]c5tage (     
royalties payable "u ?is section = usage
 ( musical works 9 cov]$ activities     
7reg>dless ( :e!r a diff]5t rate applies
 "u a volunt>y lic5se71 or any o!r      
usage-bas$ metric reasonably calculat$  
to equitably allocate ! collective total

 co/s across digital music provid]s &   
significant nonblanket lic5sees engag$ 9
 cov]$ activities1 b %all include z a   
compon5t a m9imum fee = all digital     
music provid]s & significant nonblanket 
lic5sees2 &  7,v7 take into consid]ation
 anticipat$ future collective total co/s
 & collections ( ! adm9i/rative         
assessm5t1 b also1 z applicable--  7aa7 
any portion ( pa/ actual collective     
total co/s ( ! me*anical lic5s+         
collective n fund$ by previ\s           
collections ( ! adm9i/rative assessm5t  
or volunt>y contributions because su*   
collections or contributions toge!r 7   
insuffici5t to fund su* co/s2  7bb7 any 
pa/ collections ( ! adm9i/rative        
assessm5t & volunt>y contributions t    
exce$$ pa/ actual collective total co/s1
 result+ 9 a surplus2 &  7cc7 ! am\nt ( 
any volunt>y contributions by digital   
music provid]s or significant nonblanket
 lic5sees 9 relevant p]iods1 describ$ 9 
subp>agraphs 7,a7 & 7,b7 ( p>agraph     
7#g74  7iii7 ,initial adm9i/rative      

assessm5t ,! proc$ure = e/abli%+ !      
initial adm9i/rative assessm5t %all be z
 foll[s3  7,i7 ,! ,copyright ,royalty   
,judges %all comm5ce a proce$+ to       
e/abli% ! initial adm9i/rative assessm5t
 )9 #i mon?s aft] ! enactm5t date by    
publi%+ a notice 9 ! ,f$]al ,regi/]     
seek+ petitions to p>ticipate4  7,,ii7  
,! me*anical lic5s+ collective & digital
 lic5see coord9ator %all p>ticipate 9   
su* proce$+1 along ) any int]e/$        
copyright own]s1 digital music provid]s 
or significant nonblanket lic5sees t h  
notifi$ ! ,copyright ,royalty ,judges ( 
_! desire to p>ticipate4  7,,iii7 ,!    
,copyright ,royalty ,judges %all e/abli%
 a s*$ule = submission by ! p>ties (    
in=mation t may be relevant to e/abli%+ 
! adm9i/rative assessm5t1 includ+ actual
 & anticipat$ collective total co/s ( ! 
me*anical lic5s+ collective1 actual &   
anticipat$ collections f digital music  
provid]s & significant nonblanket       
lic5sees1 & docum5tation ( volunt>y     
contributions1 z well z a s*$ule = fur!r

 proce$+s1 :i* %all include a he>+1 z !y
 deem appropriate4  7,,iv7 ,! initial   
adm9i/rative assessm5t %all be det]m9$1 
& su* det]m9ation %all be publi%$ 9 !   
,f$]al ,regi/] by ! ,copyright ,royalty 
,judges1 )9 #a ye> aft] comm5cem5t ( !  
proce$+ describ$ 9 ?is clause4 ,!       
det]m9ation %all be support$ by a writt5
 record4 ,! initial adm9i/rative        
assessm5t %all be effective z ( ! lic5se
 availability date1 & %all cont9ue 9    
effect unless & until an adju/$         
adm9i/rative assessm5t is e/abli%$      
pursuant to an adju/m5t proce$+ "u      
clause 7iii74  7iv7 ,adju/m5t (         
adm9i/rative assessm5t ,! adm9i/rative  
assessm5t may be adju/$ by ! ,copyright 
,royalty ,judges p]iodically1 9         
accordance ) ! foll[+ proc$ures3 7,i7   
,no e>li] ?an #a ye> aft] ! mo/ rec5t   
publication ( a det]m9ation ( !         
adm9i/rative assessm5t by ! ,copyright  
,royalty ,judges1 ! me*anical lic5s+    
collective1 ! digital lic5see           
coord9ator1 or "o or m int]e/$ copyright

 own]s1 digital music provid]s1 or      
significant nonblanket lic5sees1 may    
file a petition ) ! ,copyright ,royalty 
,judges 9 ! mon? ( ,octob] to comm5ce a 
proce$+ to adju/ ! adm9i/rative         
assessm5t4  7,,ii7 ,notice ( !          
comm5cem5t ( su* proce$+ %all be publi%$
 9 ! ,f$]al ,regi/] 9 ! mon? ( ,novemb] 
foll[+ ! fil+ ( any petition1 ) a s*$ule
 ( reque/$ in=mation & additional       
proce$+s1 z describ$ 9 clause           
7iii77,,iii74 ,! me*anical lic5s+       
collective & digital lic5see coord9ator 
%all p>ticipate 9 su* proce$+1 along )  
any int]e/$ copyright own]s1 digital    
music provid]s1 or significant          
nonblanket lic5sees t h notifi$ !       
,copyright ,royalty ,judges ( _! desire 
to p>ticipate4  7,,iii7 ,! det]m9ation (
 ! adju/$ adm9i/rative assessm5t1 :i*   
%all be support$ by a writt5 record1    
%all be publi%$ 9 ! ,f$]al ,regi/] dur+ 
,novemb] ( ! cal5d> ye> foll[+ !        
comm5cem5t ( ! proce$+4 ,! adju/$       
adm9i/rative assessm5t %all take effect 

,janu>y #a ( ! ye> foll[+ su*           
publication4  7v7 ,adoption ( volunt>y  
agreem5ts ,9 lieu ( rea*+ _! own        
det]m9ation bas$ on evaluation (        
relevant data1 ! ,copyright ,royalty    
,judges %all approve & adopt a negotiat$
 agreem5t to e/abli% ! am\nt & t]ms ( ! 
adm9i/rative assessm5t t has be5 agre$  
to by ! me*anical lic5s+ collective & ! 
digital lic5see coord9ator 7or if none  
has be5 designat$1 int]e/$ digital music
 provid]s & significant nonblanket      
lic5sees repres5t+ m ?an half ( ! m>ket 
= uses ( musical works 9 cov]$          
activities71 b ! ,copyright ,royalty    
,judges %all h ! discretion to reject   
any su* agreem5t = good cause %[n4 ,an  
adm9i/rative assessm5t adopt$ "u ?is    
clause %all apply to all digital music  
provid]s & significant nonblanket       
lic5sees engag$ 9 cov]$ activities dur+ 
! p]iod x is 9 effect4  7vi7 ,cont9u+   
au?ority to am5d ,! ,copyright ,royalty 
,judges %all reta9 cont9u+ au?ority to  
am5d a det]m9ation ( an adm9i/rative    

assessm5t to correct te*nical or cl]ical
 errors1 or modify ! t]ms (             
implem5tation1 = good cause1 ) any su*  
am5dm5t to be publi%$ 9 ! ,f$]al        
,regi/]4  7vii7 ,appeal ( adm9i/rative  
assessm5t ,! det]m9ation ( an           
adm9i/rative assessm5t by ! ,copyright  
,royalty ,judges %all be appealable1 )9 
#cj cal5d> days aft] publication 9 !    
,f$]al ,regi/]1 to ! ,c\rt ( ,appeals = 
! ,di/rict ( ,columbia ,circuit by any  
p>ty t fully p>ticipat$ 9 ! proce$+4 ,! 
adm9i/rative assessm5t z e/abli%$ by !  
,copyright ,royalty ,judges %all rema9 9
 effect p5d+ ! f9al outcome ( any su*   
appeal1 & ! me*anical lic5s+ collective1
 digital lic5see coord9ator1 digital    
music provid]s1 & significant nonblanket
 lic5sees %all implem5t appropriate     
f9ancial or o!r measures )9 #c mon?s    
aft] any modification ( ! assessm5t to  
reflect & acc\nt = su* outcome4  7viii7 
,regulations ,! ,copyright ,royalty     
,judges may adopt regulations to gov]n !
 conduct ( proce$+s "u ?is p>agraph4    

7#h7 ,e/abli%m5t ( rates & t]ms "u      
blanket lic5se  7,a7 ,re/rictions on    
ratesett+ p>ticipation ,nei!r !         
me*anical lic5s+ collective nor !       
digital lic5see coord9ator %all be a    
p>ty to a proce$+ describ$ 9 subsection 
7c77#a77;,e71 b ei!r may ga!r & provide 
f9ancial & o!r in=mation = ! use ( a    
p>ty to su* a proce$+ & comply ) reque/s
 = in=mation z requir$ "u applicable    
/atutory & regulatory provisions & rul+s
 ( ! ,copyright ,royalty ,judges4  7,b7 
,application ( late fees ,9 any proce$+ 
describ$ 9 subp>agraph 7,a7 9 :i* !     
,copyright ,royalty ,judges e/abli% a   
late fee = late paym5t ( royalties =    
uses ( musical works "u ?is section1 su*
 fee %all apply to cov]$ activities "u  
blanket lic5ses1 z foll[s3  7i7 ,late   
fees = pa/ due royalty paym5ts %all     
accrue f ! due date = paym5t until      
paym5t is receiv$ by ! me*anical lic5s+ 
collective4  7ii7 ,! availability ( late
 fees %all 9 no way prev5t a copyright  
own] or ! me*anical lic5s+ collective f 

ass]t+ any o!r rights or rem$ies to :i* 
su* copyright own] or ! me*anical lic5s+
 collective may be entitl$ "u ?is title4
  7,c7 ,int]im rate agreem5ts 9 g5]al ,=
 any cov]$ activity = :i* no rate or    
t]ms h be5 e/abli%$ by ! ,copyright     
,royalty ,judges1 ! me*anical lic5s+    
collective & any digital music provid]  
may agree to an int]im rate & t]ms = su*
 activity "u ! blanket lic5se1 & any su*
 rate & t]ms-- 7i7 %all be treat$ z     
nonprec$5tial & n cit$ or reli$ ^u 9 any
 ratesett+ proce$+ be=e ! ,copyright    
,royalty ,judges or any o!r tribunal2 & 
7ii7 %all automatically expire ^u !     
e/abli%m5t ( a rate & t]ms = su* cov]$  
activity by ! ,copyright ,royalty       
,judges1 "u subsection 7c77#a77;,e74    
7,d7 ,adju/m5ts = int]im rates ,! rate &
 t]ms e/abli%$ by ! ,copyright ,royalty 
,judges = a cov]$ activity to :i* an    
int]im rate & t]ms h be5 agre$ "u       
subp>agraph 7,c7 %all sup]s$e ! int]im  
rate & t]ms & apply retroactively to !  
inception ( ! activity "u ! blanket     

lic5se4 ,9 su* case1 )9 #c mon?s aft] ! 
rate & t]ms e/abli%$ by ! ,copyright    
,royalty ,judges become effective--  7i7
 if ! rate e/abli%$ by ! ,copyright     
,royalty ,judges exce$s ! int]im rate1 !
 digital music provid] %all pay to !    
me*anical lic5s+ collective ! am\nt (   
any und]paym5t ( royalties due2 or  7ii7
 if ! int]im rate exce$s ! rate e/abli%$
 by ! ,copyright ,royalty ,judges1 !    
me*anical lic5s+ collective %all cr$it !
 acc\nt ( ! digital music provid] = !   
am\nt ( any ov]paym5t ( royalties due4  
7#i7 ,transition to blanket lic5ses     
7,a7 ,sub/itution ( blanket lic5se ,on !
 lic5se availability date1 a blanket    
lic5se %all1 )\t any int]ruption 9      
lic5se au?ority enjoy$ by su* digital   
music provid]1 be automatically         
sub/itut$ = & sup]s$e any exi/+         
compulsory lic5se previ\sly obta9$ "u   
?is section by ! digital music provid] f
 a copyright own] to engage 9 "o or m   
cov]$ activities ) respect to a musical 
"w1 b ! =ego+ %all n apply to any       

au?ority obta9$ f a record company      
pursuant to a compulsory lic5se to make 
& di/ribute p]man5t d[nloads unless &   
until su* record company t]m9ates su*   
au?ority 9 writ+ to take effect at ! end
 ( a mon?ly report+ p]iod1 ) a copy to !
 me*anical lic5s+ collective4  7,b7     
,expiration ( exi/+ lic5ses ,except to !
 ext5t provid$ 9 subp>agraph 7,a71 on & 
aft] ! lic5se availability date1 lic5ses
 o!r ?an individual d[nload lic5ses     
obta9$ "u ?is section = cov]$ activities
 prior to ! lic5se availability date    
%all no long] cont9ue 9 effect4  7,c7   
,treatm5t ( volunt>y lic5ses ,a volunt>y
 lic5se = a cov]$ activity 9 effect on !
 lic5se availability date w rema9 9     
effect unless & until ! volunt>y lic5se 
expires accord+ to ! t]ms ( ! volunt>y  
lic5se1 or ! p>ties agree to am5d or    
t]m9ate ! volunt>y lic5se4 ,9 a case :]e
 a volunt>y lic5se = a cov]$ activity   
ent]$ into be=e ! lic5se availability   
date incorporates ! t]ms ( ?is section  
by ref]5ce1 ! t]ms s incorporat$ 7b n ! 

rates7 %all be ^? 9 effect imm$iately   
prior to ! lic5se availability date1 &  
^? t]ms %all cont9ue to apply unless &  
until su* volunt>y lic5se is t]m9at$ or 
am5d$1 or ! p>ties ent] into a new      
volunt>y lic5se4  7,d7 ,fur!r acceptance
 ( notices = cov]$ activities by        
,copyright ,(fice ,on & aft] ! enactm5t 
date--  7i7 ! ,copyright ,(fice %all no 
long] accept notices ( int5tion )       
respect to cov]$ activities2 &  7ii7    
previ\sly fil$ notices ( int5tion w no  
long] be effective or provide lic5se    
au?ority ) respect to cov]$ activities1 
b be=e ! lic5se availability date !re   
%all be no liability "u section #eja = !
 reproduction or di/ribution ( a musical
 "w 7or %>e !re(7 9 cov]$ activities if 
a valid notice ( int5tion 0 fil$ = su*  
"w 7or %>e7 be=e ! enactm5t date4  7#aj7
 ,prior unlic5s$ uses  7,a7 ,limitation 
on liability 9 g5]al ,a copyright own] t
 comm5ces an action "u section #eja on  
or aft] ,janu>y #a1 #bjah1 aga9/ a      
digital music provid] = ! infr+em5t ( ! 

exclusive rights provid$ by p>agraph    
7#a7 or 7#c7 ( section #ajf aris+ f !   
unau?oriz$ reproduction or di/ribution (
 a musical "w by su* digital music      
provid] 9 ! c\rse ( engag+ 9 cov]$      
activities prior to ! lic5se            
availability date1 %all1 z ! copyright  
own]'s sole & exclusive rem$y aga9/ !   
digital music provid]1 be eligible to   
recov] ! royalty prescrib$ "u subsection
 7c77#a77;,c7 & *apt] #h ( ?is title1 f 
! digital music provid]1 provid$ t su*  
digital music provid] c demon/rate      
compliance ) ! requirem5ts ( subp>agraph
 7,b71 z applicable4 ,9 all o!r cases ! 
limitation on liability "u ?is          
subp>agraph %all n apply4  7,b7         
,requirem5ts = limitation on liability  
,! foll[+ requirem5ts %all apply on !   
enactm5t date & ?r\gh ! end ( ! p]iod t 
expires #ij days aft] ! lic5se          
availability date to digital music      
provid]s seek+ to avail !mselves ( !    
limitation on liability describ$ 9      
subp>agraph 7,a73  7i7 ,no lat] ?an #cj 

cal5d> days aft] fir/ mak+ a p>ticul>   
s\nd record+ ( a musical "w available   
?r\gh its s]vice via "o or m cov]$      
activities1 or #cj cal5d> days aft] !   
enactm5t date1 :i*ev] occurs lat]1 a    
digital music provid] %all engage 9     
good-fai?1 comm]cially reasonable ef=ts 
to id5tify & locate ea* copyright own] (
 su* musical "w 7or %>e !re(74 ,su*     
requir$ mat*+ ef=ts %all include !      
foll[+3 7,i7 ,good-fai?1 comm]cially    
reasonable ef=ts to obta9 f ! own] ( !  
correspond+ s\nd record+ made available 
?r\gh ! digital music provid]'s s]vice !
 foll[+ in=mation3  7aa7 ,s\nd record+  
"n1 featur$ arti/1 s\nd record+         
copyright own]1 produc]1 int]national   
/&>d record+ code1 & o!r in=mation      
commonly us$ 9 ! indu/ry to id5tify s\nd
 record+s & mat* !m to ! musical works  
!y embody4  7bb7 ,any available musical 
"w own]%ip in=mation1 includ+ ea*       
songwrit] & publi%] "n1 p]c5tage own]%ip
 %>e1 & int]national /&>d musical "w    
code4  7,,ii7 ,employm5t ( "o or m bulk 

electronic mat*+ processes t are        
available to ! digital music provid]    
?r\gh a ?ird-p>ty v5dor on comm]cially  
reasonable t]ms1 b a digital music      
provid] may rely on its own bulk        
electronic mat*+ process if x has       
capabilities comp>able to or bett] ?an  
^? available f a ?ird-p>ty v5dor on     
comm]cially reasonable t]ms4  7ii7 ,!   
requir$ mat*+ ef=ts %all be repeat$ by !
 digital music provid] no less ?an once 
p] mon? = s long z ! copyright own]     
rema9s unid5tifi$ or has n be5 locat$4  
7iii7 ,if ! requir$ mat*+ ef=ts are     
successful 9 id5tify+ & locat+ a        
copyright own] ( a musical "w 7or %>e   
!re(7 by ! end ( ! cal5d> mon? 9 :i* !  
digital music provid] fir/ makes use ( !
 "w1 ! digital music provid] %all       
provide /atem5ts ( acc\nt & pay         
royalties to su* copyright own] 9       
accordance ) ?is section & applicable   
regulations4  7iv7 ,if ! copyright own] 
is n id5tifi$ or locat$ by ! end ( !    
cal5d> mon? 9 :i* ! digital music       

provid] fir/ makes use ( ! "w1 ! digital
 music provid] %all accrue & hold       
royalties calculat$ "u ! applicable     
/atutory rate 9 accordance ) usage ( !  
"w1 f initial use ( ! "w until ! accru$ 
royalties c be paid to ! copyright own] 
or are requir$ to be transf]r$ to !     
me*anical lic5s+ collective1 z foll[s3  
7,i7 ,accru$ royalties %all be ma9ta9$  
by ! digital music provid] 9 accordance 
) g5]ally accept$ acc\nt+ pr9ciples4    
7,,ii7 ,if a copyright own] ( an unmat*$
 musical "w 7or %>e !re(7 is id5tifi$ & 
locat$ by or to ! digital music provid] 
be=e ! lic5se availability date1 !      
digital music provid] %all--  7aa7 )9   
#de cal5d> days aft] ! end ( ! cal5d>   
mon? dur+ :i* ! copyright own] 0        
id5tifi$ & locat$1 pay ! copyright own] 
all accru$ royalties1 su* paym5t to be  
accompani$ by a cumulative /atem5t (    
acc\nt t includes all ( ! in=mation t   
w\ld h be5 provid$ to ! copyright own]  
_h ! digital music provid] be5 provid+  
mon?ly /atem5ts ( acc\nt to ! copyright 

own] f initial use ( ! "w 9 accordance )
 ?is section & applicable regulations1  
includ+ ! requisite c]tification "u     
subsection 7c77#b77;,i72  7bb7 beg9n+ ) 
! acc\nt+ p]iod foll[+ ! cal5d> mon? 9  
:i* ! copyright own] 0 id5tifi$ &       
locat$1 & = all o!r acc\nt+ p]iods prior
 to ! lic5se availability date1 provide 
mon?ly /atem5ts ( acc\nt & pay royalties
 to ! copyright own] z requir$ "u ?is   
section & applicable regulations2 &     
7cc7 beg9n+ ) ! mon?ly royalty report+  
p]iod comm5c+ on ! lic5se availability  
date1 report usage & pay royalties = su*
 musical "w 7or %>e !re(7 = su* report+ 
p]iod & report+ p]iods !reaft] to !     
me*anical lic5s+ collective1 z requir$  
"u ?is subsection & applicable          
regulations4  7,,iii7 ,if a copyright   
own] ( an unmat*$ musical "w 7or %>e    
!re(7 is n id5tifi$ & locat$ by ! lic5se
 availability date1 ! digital music     
provid] %all--  7aa7 )9 #de cal5d> days 
aft] ! lic5se availability date1 transf]
 all accru$ royalties to ! me*anical    

lic5s+ collective1 su* paym5t to be     
accompani$ by a cumulative /atem5t (    
acc\nt t includes all ( ! in=mation t   
w\ld h be5 provid$ to ! copyright own]  
_h ! digital music provid] be5 s]v+     
mon?ly /atem5ts ( acc\nt on ! copyright 
own] f initial use ( ! "w 9 accordance )
 ?is section & applicable regulations1  
includ+ ! requisite c]tification "u     
subsection 7c77#b77;,i71 & accompani$ by
 an additional c]tification by a duly   
au?oriz$ (fic] ( ! digital music provid]
 t ! digital music provid] has fulfill$ 
! requirem5ts ( clauses 7i7 & 7ii7 (    
subp>agraph 7,b7 b has n be5 successful 
9 locat+ or id5tify+ ! copyright own]2 &
  7bb7 beg9n+ ) ! mon?ly royalty report+
 p]iod comm5c+ on ! lic5se availability 
date1 report usage & pay royalties = su*
 musical "w 7or %>e !re(7 = su* p]iod & 
report+ p]iods !reaft] to ! me*anical   
lic5s+ collective1 z requir$ "u ?is     
subsection & applicable regulations4    
7v7 ,susp5sion ( late fees ,a digital   
music provid] t complies ) ! requirem5ts

 ( ?is p>agraph ) respect to unmat*$    
musical works 7or %>es ( works7 %all n  
be liable = or accrue late fees = late  
paym5ts ( royalties = su* works until   
su* "t z ! digital music provid] is     
requir$ to beg9 pay+ mon?ly royalties to
 ! copyright own] or ! me*anical lic5s+ 
collective1 z applicable4  7,c7 ,adju/$ 
/atute ( limitations ,not)/&+ any?+ to !
 contr>y 9 section #ejg7;b71 ) respect  
to any claim ( infr+em5t ( ! exclusive  
rights provid$ by p>agraphs 7#a7 & 7#c7 
( section #ajf aga9/ a digital music    
provid] aris+ f ! unau?oriz$            
reproduction or di/ribution ( a musical 
"w by su* digital music provid] to      
engage 9 cov]$ activities t accru$ no m 
?an #c ye>s prior to ! lic5se           
availability date1 su* action may be    
comm5c$ )9 #c ye>s ( ! date ! claim     
accru$1 or up to #b ye>s aft] ! lic5se  
availability date1 :i*ev] is lat]4  7,d7
 ,o!r rights & rem$ies pres]v$ ,except z
 expressly provid$ 9 ?is p>agraph1 no?+ 
9 ?is p>agraph %all be con/ru$ to alt]1 

limit1 or negate any "r or rem$y ( a    
copyright own] ) respect to unau?oriz$  
use ( a musical "w4  7#aa7 ,legal       
protections = lic5s+ activities  7,a7   
,exemption = compulsory lic5se          
activities ,! antitru/ exemption        
describ$ 9 subsection 7c77#a77;,d7 %all 
apply to negotiations & agreem5ts betwe5
 & among copyright own]s & p]sons       
entitl$ to obta9 a compulsory lic5se =  
cov]$ activities1 & common ag5ts act+ on
 behalf ( su* copyright own]s or p]sons1
 includ+ ) respect to ! adm9i/rative    
assessm5t e/abli%$ "u ?is subsection4   
7,b7 ,limitation on common ag5t         
exemption ,not)/&+ ! antitru/ exemption 
provid$ 9 subsection 7c77#a77;,d7 &     
subp>agraph 7,a7 7except = !            
adm9i/rative assessm5t ref]5c$ !re9 &   
except z provid$ 9 p>agraph 7#h77;,c771 
nei!r ! me*anical lic5s+ collective nor 
! digital lic5see coord9ator %all s]ve z
 a common ag5t ) respect to ! e/abli%m5t
 ( royalty rates or t]ms "u ?is section4
  7,c7 ,antitru/ exemption =            

adm9i/rative activities ,not)/&+ any    
provision ( ! antitru/ laws1 copyright  
own]s & p]sons entitl$ to obta9 a       
compulsory lic5se "u ?is section may    
designate ! me*anical lic5s+ collective 
to adm9i/] volunt>y lic5ses = !         
reproduction or di/ribution ( musical   
works 9 cov]$ activities on behalf ( su*
 copyright own]s & p]sons1 b ! foll[+   
conditions apply3  7i7 ,ea* copyright   
own] %all e/abli% ! royalty rates &     
mat]ial t]ms ( any su* volunt>y lic5se  
individually & n 9 agreem5t1 comb9ation1
 or conc]t ) any o!r copyright own]4    
7ii7 ,ea* p]son entitl$ to obta9 a      
compulsory lic5se "u ?is section %all   
e/abli% ! royalty rates & mat]ial t]ms (
 any su* volunt>y lic5se individually & 
n 9 agreem5t1 comb9ation1 or conc]t )   
any o!r digital music provid]4  7iii7 ,!
 me*anical lic5s+ collective %all ma9ta9
 ! confid5tiality ( ! volunt>y lic5ses 9
 accordance ) ! confid5tiality          
provisions prescrib$ by ! ,regi/] (     
,copyrights "u p>agraph 7#ab77;,c74     

7,d7 ,liability = good-fai? activities  
,! me*anical lic5s+ collective %all n be
 liable to any p]son or entity bas$ on a
 claim aris+ f its good-fai?            
adm9i/ration ( policies & proc$ures     
adopt$ & implem5t$ to c>ry out !        
responsibilities describ$ 9 subp>agraphs
 7,j7 & 7,k7 ( p>agraph 7#c71 except to 
! ext5t ( correct+ an und]paym5t or     
ov]paym5t ( royalties z provid$ 9       
p>agraph 7#c77,l77i77,,vi71 b !         
collective may p>ticipate 9 a legal     
proce$+ z a /akehold] p>ty if !         
collective is hold+ funds t are !       
subject ( a dispute betwe5 copyright    
own]s4 ,= purposes ( ?is subp>agraph1   
good-fai? adm9i/ration means            
adm9i/ration 9 a mann] t is n grossly   
neglig5t4  7,e7 ,preemption ( ,/ate     
prop]ty laws ,! hold+ & di/ribution (   
funds by ! me*anical lic5s+ collective 9
 accordance ) ?is subsection %all       
sup]s$e & preempt any ,/ate law 7includ+
 common law7 conc]n+ es*eatm5t or ab&on$
 prop]ty1 or any analog\s provision1 t  

might o!rwise apply4  7,f7 ,rule (      
con/ruction ,except z expressly provid$ 
9 ?is subsection1 no?+ 9 ?is subsection 
%all negate or limit ! ability ( any    
p]son to pursue an action 9 ,f$]al c\rt 
aga9/ ! me*anical lic5s+ collective or  
any o!r p]son bas$ ^u a claim aris+ "u  
?is title or o!r applicable law4  7#ab7 
,regulations  7,a7 ,adoption by regi/] (
 copyrights & copyright royalty judges  
,! ,regi/] ( ,copyrights may conduct su*
 proce$+s & adopt su* regulations z may 
be necess>y or appropriate to effectuate
 ! provisions ( ?is subsection1 except =
 regulations conc]n+ proce$+s be=e !    
,copyright ,royalty ,judges to e/abli% !
 adm9i/rative assessm5t1 :i* %all be    
adopt$ by ! ,copyright ,royalty ,judges4
  7,b7 ,judicial review ( regulations   
,except z provid$ 9 p>agraph            
7#g77;,d77vii71 regulations adopt$ "u   
?is subsection %all be subject to       
judicial review pursuant to *apt] #g (  
title #e4  7,c7 ,protection (           
confid5tial in=mation ,! ,regi/] (      

,copyrights %all adopt regulations to   
provide = ! appropriate proc$ures to    
ensure t confid5tial1 private1          
propriet>y1 or privileg$ in=mation      
conta9$ 9 ! records ( ! me*anical lic5s+
 collective & digital lic5see coord9ator
 is n improp]ly disclos$ or us$1 includ+
 ?r\gh any disclosure or use by ! bo>d (
 directors or p]sonnel ( ei!r entity1 & 
specifically includ+ ! unclaim$         
royalties ov]sight committee & ! dispute
 resolution committee ( ! me*anical     
lic5s+ collective4  7#ac7 ,sav+s clauses
  7,a7 ,limitation on activities &      
rights cov]$ ,?is subsection applies    
solely to uses ( musical works subject  
to lic5s+ "u ?is section4 ,! blanket    
lic5se %all n be con/ru$ to ext5d or    
apply to activities o!r ?an cov]$       
activities or to rights o!r ?an !       
exclusive rights ( reproduction &       
di/ribution lic5s$ "u ?is section1 or   
s]ve or act z ! basis to ext5d or exp& !
 compulsory lic5se "u ?is section to    
activities & rights n cov]$ by ?is      

section on ! enactm5t date4  7,b7       
,rights ( public p]=mance n affect$ ,!  
rights1 protections1 & immunities grant$
 "u ?is subsection1 ! data conc]n+      
musical works collect$ & made available 
"u ?is subsection1 & ! def9itions       
describ$ 9 subsection 7e7 %all n ext5d  
to1 limit1 or o!rwise affect any "r (   
public p]=mance 9 a musical "w4  2 &    
7#e7 by add+ at ! end ! foll[+ new      
subsection3  7e7 ,def9itions ,z us$ 9   
?is section3 7#a7 ,accru$ int]e/ ,! t]m 
accru$ int]e/ means int]e/ accru$ on    
accru$ royalties1 z describ$ 9          
subsection 7d77#c77;,h77ii74  7#b7      
,accru$ royalties ,! t]m accru$         
royalties means royalties accru$ = !    
reproduction or di/ribution ( a musical 
"w 7or %>e !re(7 9 a cov]$ activity1    
calculat$ 9 accordance ) ! applicable   
royalty rate "u ?is section4  7#c7      
,adm9i/rative assessm5t ,! t]m          
adm9i/rative assessm5t means ! fee      
e/abli%$ pursuant to subsection         
7d77#g77;,d74  7#d7 ,audit ,! t]m audit 

means a royalty compliance exam9ation to
 v]ify ! accuracy ( royalty paym5ts1 or 
! conduct ( su* an exam9ation1 z        
applicable4  7#e7 ,blanket lic5se ,! t]m
 blanket lic5se means a compulsory      
lic5se describ$ 9 subsection            
7d77#a77;,a7 to engage 9 cov]$          
activities4  7#f7 ,collective total co/s
 ,! t]m collective total co/s-- 7,a7    
means ! total co/s ( e/abli%+1 ma9ta9+1 
& op]at+ ! me*anical lic5s+ collective  
to fulfill its /atutory functions1      
includ+--  7i7 />tup co/s2  7ii7 f9anc+1
 legal1 & insurance co/s2  7iii7        
inve/m5ts 9 in=mation te*nology1        
infra/ructure1 & o!r long-t]m res\rces2 
7iv7 outside v5dor co/s2  7v7 co/s (    
lic5s+1 royalty adm9i/ration1 & en=cem5t
 ( rights2  7vi7 co/s ( bad debt2 &     
7vii7 co/s ( automat$ & manual ef=ts to 
id5tify & locate copyright own]s (      
musical works 7& %>es ( su* musical     
works7 & mat* s\nd record+s to ! musical
 works ! s\nd record+s embody2 &  7,b7  
does n include any add$ co/s incurr$ by 

! me*anical lic5s+ collective to provide
 s]vices "u volunt>y lic5ses4  7#g7     
,cov]$ activity ,! t]m cov]$ activity   
means ! activity ( mak+ a digital       
phonorecord deliv]y ( a musical "w1     
includ+ 9 ! =m ( a p]man5t d[nload1     
limit$ d[nload1 or int]active /ream1 :]e
 su* activity qualifi$ = a compulsory   
lic5se "u ?is section4  7#h7 ,digital   
music provid] ,! t]m digital music      
provid] means a p]son 7or p]sons op]at+ 
"u ! au?ority ( t p]son7 t1 ) respect to
 a s]vice engag$ 9 cov]$ activities--   
7,a7 has a direct contractual1          
subscription1 or o!r economic           
relation%ip ) end us]s ( ! s]vice1 or1  
if no su* relation%ip ) end us]s exi/s1 
ex]cises direct control ov] ! provision 
( ! s]vice to end us]s2  7,b7 is able to
 fully report on any rev5ues &          
consid]ation g5]at$ by ! s]vice2 &  7,c7
 is able to fully report on usage ( s\nd
 record+s ( musical works by ! s]vice   
7or procure su* report+74  7#i7 ,digital
 lic5see coord9ator ,! t]m digital      

lic5see coord9ator means ! entity mo/   
rec5tly designat$ pursuant to subsection
 7d77#e74  7#aj7 ,digital phonorecord   
deliv]y ,! t]m digital phonorecord      
deliv]y means ea* individual deliv]y ( a
 phonorecord by digital transmission ( a
 s\nd record+ t results 9 a specifically
 id5tifiable reproduction by or = any   
transmission recipi5t ( a phonorecord ( 
t s\nd record+1 reg>dless ( :e!r !      
digital transmission is also a public   
p]=mance ( ! s\nd record+ or any musical
 "w embodi$ !re91 & includes a p]man5t  
d[nload1 a limit$ d[nload1 or an        
int]active /ream4 ,a digital phonorecord
 deliv]y does n result f a real-"t1     
non9t]active subscription transmission (
 a s\nd record+ :]e no reproduction ( ! 
s\nd record+ or ! musical "w embodi$    
!re9 is made f ! inception ( !          
transmission ?r\gh to its receipt by !  
transmission recipi5t 9 ord] to make !  
s\nd record+ audible4 ,a digital        
phonorecord deliv]y does n include !    
digital transmission ( s\nds accompany+ 

a motion picture or o!r audiovisual "w z
 def9$ 9 section #aja ( ?is title4      
7#aa7 ,enactm5t date ,! t]m enactm5t    
date means ! date ( ! enactm5t ( !      
,musical ,works ,mod]nization ,act4     
7#ab7 ,individual d[nload lic5se ,! t]m 
individual d[nload lic5se means a       
compulsory lic5se obta9$ by a record    
company to make & di/ribute1 or au?orize
 ! mak+ & di/ribution (1 p]man5t        
d[nloads embody+ a specific individual  
musical "w4  7#ac7 ,int]active /ream ,! 
t]m int]active /ream means a digital    
transmission ( a s\nd record+ ( a       
musical "w 9 ! =m ( a /ream1 :]e !      
p]=mance ( ! s\nd record+ by means ( su*
 transmission is n exempt "u section    
#aad7;d77#a7 & does n 9 itself1 or z a  
result ( a program 9 :i* x is includ$1  
qualify = /atutory lic5s+ "u section    
#aad7;d77#b74 ,an int]active /ream is a 
digital phonorecord deliv]y4  7#ad7     
,int]e/$ ,! t]m int]e/$1 z appli$ to a  
p>ty seek+ to p>ticipate 9 a proce$+ "u 
subsection 7d77#g77;,d71 is a p>ty z to 

:i* ! ,copyright ,royalty ,judges h n   
det]m9$ t ! p>ty lacks a significant    
int]e/ 9 su* proce$+4  7#ae7 ,lic5se    
availability date ,! t]m lic5se         
availability date means ! next ,janu>y  
#a foll[+ ! expiration ( ! #b-ye> p]iod 
beg9n+ on ! enactm5t date4  7#af7       
,limit$ d[nload ,! t]m limit$ d[nload   
means a digital transmission ( a s\nd   
record+ ( a musical "w 9 ! =m ( a       
d[nload1 :]e su* s\nd record+ is        
accessible = li/5+ only = a limit$ am\nt
 ( "t or specifi$ numb] ( times4  7#ag7 
,mat*$ ,! t]m mat*$1 z appli$ to a      
musical "w 7or %>e !re(71 means t !     
copyright own] ( su* "w 7or %>e !re(7   
has be5 id5tifi$ & locat$4  7#ah7       
,me*anical lic5s+ collective ,! t]m     
me*anical lic5s+ collective means !     
entity mo/ rec5tly designat$ z su* by ! 
,regi/] ( ,copyrights "u subsection     
7d77#c74  7#ai7 ,me*anical lic5s+       
collective budget ,! t]m me*anical      
lic5s+ collective budget means a /atem5t
 ( ! f9ancial position ( ! me*anical    

lic5s+ collective = a fiscal ye> or     
qu>t] !re( bas$ on e/imates (           
exp5ditures dur+ ! p]iod & proposals =  
f9anc+ !m1 includ+ a calculation ( !    
collective total co/s4  7#bj7 ,musical  
works database ,! t]m musical works     
database means ! database describ$ 9    
subsection 7d77#c77;,e74  7#ba7         
,nonpr(it ,! t]m nonpr(it means a       
nonpr(it creat$ or organiz$ 9 a ,/ate4  
7#bb7 ,notice ( lic5se ,! t]m notice (  
lic5se means a notice f a digital music 
provid] provid$ "u subsection           
7d77#b77;,a7 = purposes ( obta9+ a      
blanket lic5se4  7#bc7 ,notice (        
nonblanket activity ,! t]m notice (     
nonblanket activity means a notice f a  
significant nonblanket lic5see provid$  
"u subsection 7d77#f77;,a7 = purposes ( 
notify+ ! me*anical lic5s+ collective t 
! lic5see has be5 engag+ 9 cov]$        
activities4  7#bd7 ,p]man5t d[nload ,!  
t]m p]man5t d[nload means a digital     
transmission ( a s\nd record+ ( a       
musical "w 9 ! =m ( a d[nload1 :]e su*  

s\nd record+ is accessible = li/5+ )\t  
re/riction z to ! am\nt ( "t or numb] ( 
times x may be access$4  7#be7 ,qualifi$
 auditor ,! t]m qualifi$ auditor means  
an indep5d5t1 c]tifi$ public acc\ntant )
 exp]i5ce p]=m+ music royalty audits4   
7#bf7 ,record company ,! t]m record     
company means an entity t inve/s 91     
produces1 & m>kets s\nd record+s (      
musical works1 & di/ributes su* s\nd    
record+s = remun]ation ?r\gh multiple   
sales *annels1 includ+ a corporate      
affiliate ( su* an entity engag$ 9      
di/ribution ( s\nd record+s4  7#bg7     
,report ( usage ,! t]m report ( usage   
means a report reflect+ an entity's     
usage ( musical works 9 cov]$ activities
 describ$ 9 subsection 7d77#d77;,a74    
7#bh7 ,requir$ mat*+ ef=ts ,! t]m       
requir$ mat*+ ef=ts means ef=ts to      
id5tify & locate copyright own]s (      
musical works z describ$ 9 subsection   
7d77#aj77;,b77i74  7#bi7 ,s]vice ,! t]m 
s]vice1 z us$ 9 relation to cov]$       
activities1 means any site1 facility1 or

 (f]+ by or ?r\gh :i* s\nd record+s (   
musical works are digitally transmitt$  
to memb]s ( ! public4  7#cj7 ,%>e ,! t]m
 %>e1 z appli$ to a musical "w1 means a 
fractional own]%ip int]e/ 9 su* "w4     
7#ca7 ,significant nonblanket lic5see ,!
 t]m significant nonblanket lic5see--   
7,a7 means an entity1 includ+ a gr\p (  
entities "u common own]%ip or control t1
 act+ "u ! au?ority ( "o or m volunt>y  
lic5ses or individual d[nload lic5ses1  
(f]s a s]vice engag$ 9 cov]$ activities1
 & su* entity or gr\p ( entities-- 7i7  
is n curr5tly op]at+ "u a blanket lic5se
 & is n obligat$ to provide reports (   
usage reflect+ cov]$ activities "u      
subsection 7d77#d77;,a72  7ii7 has a    
direct contractual1 subscription1 or o!r
 economic relation%ip ) end us]s ( !    
s]vice or1 if no su* relation%ip ) end  
us]s exi/s1 ex]cises direct control ov] 
! provision ( ! s]vice to end us]s2 &   
7iii7 ei!r--  7,i7 on any day 9 a cal5d>
 mon?1 makes m ?an #e1jjj diff]5t s\nd  
record+s ( musical works available ?r\gh

 su* s]vice2 or  7,,ii7 d]ives rev5ue or
 o!r consid]ation 9 connection ) su*    
cov]$ activities great] ?an #ej1jjj 9 a 
cal5d> mon?1 or total rev5ue or o!r     
consid]ation great] ?an #ejj1jjj dur+ ! 
prec$+ #ab cal5d> mon?s2 &  7,b7 does n 
include-- 7i7 an entity ^: cov]$        
activity consi/s solely ( free-to-!-us] 
/reams ( segm5ts ( s\nd record+s (      
musical works t d n exce$ #ij seconds 9 
l5g?1 are (f]$ only to facilitate a     
lic5s$ use ( musical works t is n a     
cov]$ activity1 & h no rev5ue directly  
attributable to su* /reams con/itut+ !  
cov]$ activity2 or  7ii7 a public       
broadca/+ entity z def9$ 9 section      
#aah7;f74  7#cb7 ,songwrit] ,! t]m      
songwrit] means ! au?or ( all or "p ( a 
musical "w1 includ+ a compos] or        
lyrici/4  7#cc7 ,/ate ,! t]m ,/ate means
 ea* ,/ate ( ! ,unit$ ,/ates1 ! ,di/rict
 ( ,columbia1 & ea* t]ritory or         
possession ( ! ,unit$ ,/ates4  7#cd7    
,unclaim$ accru$ royalties ,! t]m       
unclaim$ accru$ royalties means accru$  

royalties eligible = di/ribution "u     
subsection 7d77#c77;,j74  7#ce7 ,unmat*$
 ,! t]m unmat*$1 z appli$ to a musical  
"w 7or %>e !re(71 means t ! copyright   
own] ( su* "w 7or %>e !re(7 has n be5   
id5tifi$ or locat$4  7#cf7 ,volunt>y    
lic5se ,! t]m volunt>y lic5se means a   
lic5se = use ( a musical "w 7or %>e     
!re(7 o!r ?an a compulsory lic5se obta9$
 "u ?is section4  4  7b7 ,te*nical &    
con=m+ am5dm5ts to section #hja ,section
 #hja7;b7 ( title #ag1 ,unit$ ,/ates    
,code1 is am5d$-- 7#a7 by r$esignat+    
p>agraph 7#h7 z p>agraph 7#i72 &  7#b7  
by ins]t+ aft] p>agraph 7#g7 ! foll[+   
new p>agraph3  7#h7 ,to det]m9e !       
adm9i/rative assessm5t to be paid by    
digital music provid]s "u section       
#aae7;d74 ,! provisions ( section       
#aae7;d7 %all apply to ! conduct (      
proce$+s by ! ,copyright ,royalty       
,judges "u section #aae7;d7 & n !       
proc$ures describ$ 9 ?is section1 or    
section #hjc1 #hjd1 or #hje4  4  7c7    
,effective date ( am5d$ rate sett+ /&>d 

,! am5dm5ts made by subsections         
7a77#c77;,d7 & 7b77#a7 %all apply to any
 proce$+ be=e ! ,copyright ,royalty     
,judges t is p5d+ on1 or comm5c$ on or  
aft]1 ! date ( ! enactm5t ( ?is ,act4   
7d7 ,te*nical & con=m+ am5dm5ts to title
 #cg1 "p #che ( ! ,code ( ,f$]al        
,regulations ,)9 #i mon?s aft] ! date ( 
! enactm5t ( ?is ,act1 ! ,copyright     
,royalty ,judges %all am5d ! regulations
 = section #aae 9 "p #che ( title #cg1  
,code ( ,f$]al ,regulations to con=m !  
def9itions us$ 9 su* "p to ! def9itions 
( ! same t]ms describ$ 9 section        
#aae7;e7 ( title #ag1 ,unit$ ,/ates     
,code1 z am5d$ by subsection 7a74 ,9 s  
do+1 ! ,copyright ,royalty ,judges %all 
make adju/m5ts to ! language ( !        
regulations z necess>y to a*ieve ! same 
purpose & effect z ! orig9al regulations
 ) respect to ! rates & t]ms previ\sly  
adopt$ by ! ,copyright ,royalty ,judges4
  #ajc4 ,am5dm5ts to section #aad  7a7  
,uni=m rate /&>d ,section #aad7;f7 (    
title #ag1 ,unit$ ,/ates ,code1 is      

am5d$-- 7#a7 by /rik+ p>agraphs 7#a7 &  
7#b7 & ins]t+ ! foll[+3  7#a7  7,a7     
,proce$+s "u *apt] #h %all det]m9e      
reasonable rates & t]ms ( royalty       
paym5ts = transmissions subject to      
/atutory lic5s+ "u subsection 7d77#b7   
dur+ ! #e-ye> p]iod beg9n+ on ,janu>y #a
 ( ! second ye> foll[+ ! ye> 9 :i* !    
proce$+s are to be comm5c$ pursuant to  
subp>agraph 7,a7 or 7,b7 ( section      
#hjd7;b77#c71 z ! case may be1 or su*   
o!r p]iod z ! p>ties may agree4 ,!      
p>ties to ea* proce$+ %all be> _! own   
co/s4  7,b7 ,! s*$ule ( reasonable rates
 & t]ms det]m9$ by ! ,copyright ,royalty
 ,judges %all1 subject to p>agraph 7#b71
 be b9d+ on all copyright own]s ( s\nd  
record+s & entities p]=m+ s\nd record+s 
affect$ by ?is p>agraph dur+ ! #e-ye>   
p]iod specifi$ 9 subp>agraph 7,a71 or   
su* o!r p]iod z ! p>ties may agree4 ,su*
 rates & t]ms %all di/+ui% among !      
diff]5t types ( s]vices !n 9 op]ation & 
%all include a m9imum fee = ea* su* type
 ( s]vice1 su* diff]5ces to be bas$ on  

crit]ia includ+ ! quantity & nature ( ! 
use ( s\nd record+s & ! degree to :i*   
use ( ! s]vice may sub/itute = or may   
promote ! pur*ase ( phonorecords by     
consum]s4 ,! ,copyright ,royalty ,judges
 %all e/abli% rates & t]ms t mo/ cle>ly 
repres5t ! rates & t]ms t w\ld h be5    
negotiat$ 9 ! m>ketplace betwe5 a will+ 
buy] & a will+ sell]4 ,9 det]m9+ su*    
rates & t]ms1 ! ,copyright ,royalty     
,judges--  7i7 %all base _! decision on 
economic1 competitive1 & programm+      
in=mation pres5t$ by ! p>ties1 includ+--
 7,i7 :e!r use ( ! s]vice may sub/itute 
= or may promote ! sales ( phonorecords 
or o!rwise may int]f]e ) or may enhance 
! s\nd record+ copyright own]'s o!r     
/reams ( rev5ue f ! copyright own]'s    
s\nd record+s2 &  7,,ii7 ! relative     
roles ( ! copyright own] & ! transmitt+ 
entity 9 ! copyright$ "w & ! s]vice made
 available to ! public ) respect to     
relative creative contribution1         
te*nological contribution1 capital      
inve/m5t1 co/1 & risk2 &  7ii7 may      

consid] ! rates & t]ms = comp>able types
 ( audio transmission s]vices &         
comp>able circum/ances "u volunt>y      
lic5se agreem5ts4  7,c7 ,! proc$ures "u 
subp>agraphs 7,a7 & 7,b7 %all also be   
initiat$ pursuant to a petition fil$ by 
any s\nd record+ copyright own] or any  
transmitt+ entity indicat+ t a new type 
( s]vice on :i* s\nd record+s are p]=m$ 
is or is ab\t to become op]ational1 = ! 
purpose ( det]m9+ reasonable t]ms &     
rates ( royalty paym5ts ) respect to su*
 new type ( s]vice = ! p]iod beg9n+ ) ! 
inception ( su* new type ( s]vice & end+
 on ! date on :i* ! royalty rates & t]ms
 = eligible nonsubscription s]vices &   
new subscription s]vices1 or preexi/+   
s]vices1 z ! case may be1 mo/ rec5tly   
det]m9$ "u subp>agraph 7,a7 or 7,b7 &   
*apt] #h expire1 or su* o!r p]iod z !   
p>ties may agree4  2 &  7#b7 by         
r$esignat+ p>agraphs 7#c71 7#d71 & 7#e7 
z p>agraphs 7#b71 7#c71 & 7#d71         
respectively4  7b7 ,repeal ,subsection  
7i7 ( section #aad ( title #ag1 ,unit$  

,/ates ,code1 is repeal$4  7c7 ,use 9   
musical "w proce$+s  7#a7 ,9 g5]al      
,lic5se fees payable = ! public p]=mance
 ( s\nd record+s "u section #ajf7f7 (   
title #ag1 ,unit$ ,/ates ,code1 %all n  
be tak5 into acc\nt 9 any adm9i/rative1 
judicial1 or o!r gov]nm5tal proce$+ to  
set or adju/ ! royalties payable to     
musical "w copyright own]s = ! public   
p]=mance ( _! works except 9 su* a      
proce$+ to set or adju/ royalties = !   
public p]=mance ( musical works by means
 ( a digital audio transmission o!r ?an 
a transmission by a broadca/]1 & may be 
tak5 into acc\nt only ) respect to su*  
digital audio transmission4  7#b7       
,def9itions ,9 ?is subsection3 7,a7     
,transmission by a broadca/] ,a         
transmission by a broadca/] means a     
nonsubscription digital transmission    
made by a t]re/rial broadca/ /ation on  
its own behalf1 or on ! behalf ( a      
t]re/rial broadca/ /ation "u common     
own]%ip or control1 t is n "p ( an      
int]active s]vice or a music-int5sive   

s]vice compris+ ! transmission ( s\nd   
record+s cu/omiz$ = or cu/omizable by   
recipi5ts or s]vice us]s4  7,b7         
,t]re/rial broadca/ /ation ,a t]re/rial 
broadca/ /ation means a t]re/rial1      
ov]-!-air radio or television broadca/  
/ation1 lic5s$ z su* by ! ,f$]al        
,communications ,commission1 includ+ an 
,,fm ,translator z def9$ 9 section      
#gd4abca ( title #dg1 ,code ( ,f$]al    
,regulations1 & ^: prim>y bus9ess       
activities are compris$ (1 & rev5ues are
 g5]at$ ?r\gh1 t]re/rial1 ov]-!-air     
broadca/ transmissions1 or ! simultane\s
 or sub/antially-simultane\s digital    
retransmission by ! t]re/rial1 ov]-!-air
 broadca/ /ation ( its ov]-!-air        
broadca/ transmissions4  7d7 ,rule (    
con/ruction ,subsection 7c77#b7 %all n  
be giv5 effect 9 int]pret+ provisions ( 
title #ag1 ,unit$ ,/ates ,code4  7e7    
,use 9 s\nd record+ proce$+s ,! repeal (
 section #aad7;i7 ( title #ag1 ,unit$   
,/ates ,code1 by subsection 7b7 %all n  
be tak5 into acc\nt 9 any proce$+ to set

 or adju/ ! rates & fees payable = ! use
 ( s\nd record+s "u section #aab7;e7 or 
section #aad7;f7 ( su* title t is p5d+  
on1 or comm5c$ on or aft]1 ! date ( !   
enactm5t ( ?is ,act4  7f7 ,decisions &  
prec$5ts n affect$ ,! repeal ( section  
#aad7;i7 ( title #ag1 ,unit$ ,/ates     
,code1 by subsection 7b7 %all n h any   
effect ^u ! decisions1 or ! prec$5ts    
e/abli%$ or reli$ ^u1 9 any proce$+ to  
set or adju/ ! rates & fees payable = ! 
use ( s\nd record+s "u section #aab7;e7 
or section #aad7;f7 ( su* title be=e !  
date ( ! enactm5t ( ?is ,act4  7g7      
,te*nical & con=m+ am5dm5ts  7#a7       
,section #aad ,section #aad7;f7 ( title 
#ag1 ,unit$ ,/ates ,code1 z am5d$ by    
subsection 7a71 is fur!r am5d$ 9        
p>agraph 7#d77;,c71 z s r$esignat$1 by  
/rik+ "u p>agraph 7#d7 & ins]t+ "u      
p>agraph 7#c74  7#b7 ,section #hja      
,section #hja7;b77#a7 ( title #ag1      
,unit$ ,/ates ,code1 is am5d$ by /rik+  
,! rates applicable & all t foll[s ?\gh 
prevail+ indu/ry practices44  7#c7      

,section #hjd ,section #hjd7;b77#c77;,c7
 ( title #ag1 ,unit$ ,/ates ,code1 is   
am5d$-- 7,a7 9 clause 7i71 by /rik+ &   
#aad7;f77#b77;,c72  7,b7 9 clause       
7iii77,,ii71 by /rik+                   
#aad7;f77#d77;,b77ii7 & ins]t+          
#aad7;f77#c77;,b77ii72 &  7,c7 9 clause 
7iv71 by /rik+ or #aad7;f77#b77;,c71 z !
 case may be4  #ajd4 ,r&om assignm5t (  
rate c\rt proce$+s ,section #acg ( title
 #bh1 ,unit$ ,/ates ,code1 is am5d$--   
7#a7 by /rik+ ,! bus9ess & ins]t+ 7a7 ,9
 g5]al4--,! bus9ess2 &  7#b7 by add+ at 
! end ! foll[+ new subsection3  7b7     
,r&om ,assignm5t ( ,rate ,c\rt ,proce$+s
  7#a7 ,9 g5]al  7,a7 ,det]m9ation (    
lic5se fee ,except z provid$ 9          
subp>agraph 7,b71 9 ! case ( any p]=m+  
rights society subject to a cons5t      
decree1 any application = ! det]m9ation 
( a lic5se fee = ! public p]=mance (    
music 9 accordance ) ! applicable cons5t
 decree %all be made 9 ! di/rict c\rt ) 
jurisdiction ov] t cons5t decree &      
r&omly assign$ to a judge ( t di/rict   

c\rt accord+ to t c\rt's rules = !      
division ( bus9ess among di/rict judges 
curr5tly 9 effect or z may be am5d$ f "t
 to "t1 provid$ t any su* application   
%all n be assign$ to--  7i7 a judge to  
:om cont9u+ jurisdiction ov] any p]=m+  
rights society = any p]=m+ rights       
society cons5t decree is assign$ or has 
previ\sly be5 assign$2 or  7ii7 a judge 
to :om ano!r proce$+ conc]n+ an         
application = ! det]m9ation ( a         
reasonable lic5se fee is assign$ at ! "t
 ( ! fil+ ( ! application4  7,b7        
,exception ,subp>agraph 7,a7 does n     
apply to an application to det]m9e      
reasonable lic5se fees made by          
individual proprietors "u section #eac (
 title #ag4  7#b7 ,rule ( con/ruction   
,no?+ 9 p>agraph 7#a7 %all modify !     
rights ( any p>ty to a cons5t decree or 
to a proce$+ to det]m9e reasonable      
lic5se fees1 to make an application = ! 
con/ruction ( any provision ( !         
applicable cons5t decree4 ,su*          
application %all be ref]r$ to ! judge to

 :om cont9u+ jurisdiction ov] !         
applicable cons5t decree is curr5tly    
assign$4 ,if any su* application is made
 9 connection ) a rate proce$+1 su* rate
 proce$+ %all be /ay$ until ! f9al      
det]m9ation ( ! con/ruction application4
 ,disputes 9 connection ) a rate proce$+
 ab\t :e!r a lic5see is simil>ly situat$
 to ano!r lic5see %all n be subject to  
ref]ral to ! judge ) cont9u+            
jurisdiction ov] ! applicable cons5t    
decree4  4  ,,ii ,comp5sat+ ,legacy     
,arti/s = _! ,songs1 ,s]vice1 &         
,important ,contributions to ,society   
#bja4 ,%ort title ,?is title may be cit$
 z ! ,comp5sat+ ,legacy ,arti/s = _!    
,songs1 ,s]vice1 & ,important           
,contributions to ,society ,act or !    
,,classics ,act4  #bjb4 ,unau?oriz$     
digital p]=mance ( pre-#aigb s\nd       
record+s  7a7 ,protection = unau?oriz$  
digital p]=mances ,title #ag1 ,unit$    
,/ates ,code1 is am5d$ by add+ at ! end 
! foll[+ new *apt]3  #ad ,unau?oriz$    
,digital ,p]=mance ( ,pre-#aigb ,s\nd   

,record+s  ,sec4 #adja4 ,unau?oriz$     
digital p]=mance ( pre-#aigb s\nd       
record+s4  #adja4 ,unau?oriz$ digital   
p]=mance ( pre-#aigb s\nd record+s  7a7 
,unau?oriz$ acts ,anyone :o1 be=e       
,febru>y #ae1 #bjfg1 & )\t ! cons5t ( ! 
rights own]1 p]=ms publicly1 by means ( 
a digital audio transmission1 a s\nd    
record+ fix$ on or aft] ,janu>y #a1     
#aibc1 & be=e ,febru>y #ae1 #aigb1 %all 
be subject to ! rem$ies provid$ 9       
sections #ejb ?r\gh #eje to ! same ext5t
 z an infr+] ( copyright4  7b7 ,c]ta9   
au?oriz$ transmissions ,a digital audio 
transmission ( a s\nd record+ fix$ on or
 aft] ,janu>y #a1 #aibc1 & be=e ,febru>y
 #ae1 #aigb1 %all1 = purposes (         
subsection 7a71 be consid]$ to be       
au?oriz$ & made ) ! cons5t ( ! rights   
own] if--  7#a7 ! transmission is made  
by a transmitt+ entity t is publicly    
p]=m+ s\nd record+s fix$ on or aft]     
,febru>y #ae1 #aigb1 by means ( digital 
audio transmissions subject to section  
#aad2  7#b7 ! transmission w\ld satisfy 

! requirem5ts = /atutory lic5s+ "u      
section #aad7;d77#b71 or w\ld be exempt 
"u section #aad7;d77#a71 if ! s\nd      
record+ 7 fix$ on or aft] ,febru>y #ae1 
#aigb2  7#c7 9 ! case ( a transmission t
 w\ld n be exempt "u section            
#aad7;d77#a7 z describ$ 9 p>agraph 7#b71
 ! transmitt+ entity pays /atutory      
royalties & provides notice ( its use ( 
! relevant s\nd record+s 9 ! same mann] 
z is requir$ by regulations adopt$ by ! 
,copyright ,royalty ,judges = s\nd      
record+s fix$ on or aft] ,febru>y #ae1  
#aigb2 &  7#d7 9 ! case ( a transmission
 t w\ld n be exempt "u section          
#aad7;d77#a7 z describ$ 9 p>agraph 7#b71
 ! transmitt+ entity o!rwise satisfies !
 requirem5ts = /atutory lic5s+ "u       
section #aad7;f77#d77;,b74  7c7         
,transmissions by direct lic5s+ (       
/atutory s]vices  7#a7 ,9 g5]al ,a      
transmission ( a s\nd record+ fix$ on or
 aft] ,janu>y #a1 #aibc1 & be=e ,febru>y
 #ae1 #aigb1 %all1 = purposes (         
subsection 7a71 be consid]$ to be       

au?oriz$ & made ) ! cons5t ( ! rights   
own] if su* transmission is includ$ 9 a 
lic5se agreem5t volunt>ily negotiat$ at 
any "t betwe5 ! rights own] & ! entity  
p]=m+ ! s\nd record+4  7#b7 ,paym5t (   
royalties to nonpr(it collective ,to !  
ext5t t su* a lic5se agreem5t ent]$ into
 on or aft] ! date ( ! enactm5t ( ?is   
section ext5ds to digital audio         
transmissions ( a s\nd record+ fix$ on  
or aft] ,janu>y #a1 #aibc1 & be=e       
,febru>y #ae1 #aigb1 t meet ! conditions
 ( subsection 7b71 ! lic5see %all pay1  
to ! collective designat$ to di/ribute  
receipts f ! lic5s+ ( transmissions 9   
accordance ) section #aad7;f71 #ej p]c5t
 ( ! p]=mance royalties = !             
transmissions due "u ! lic5se1 ) su*    
royalties fully cr$it$ z paym5ts due "u 
! lic5se4  7#c7 ,di/ribution ( royalties
 by collective ,! collective describ$ 9 
p>agraph 7#b7 %all1 9 accordance )      
subp>agraphs 7,b7 ?r\gh 7,d7 ( section  
#aad7;g77#b71 & p>agraphs 7#e7 & 7#f7 ( 
section #aad7;g771 di/ribute ! royalties

 receiv$ "u p>agraph 7#b7 "u ! lic5se   
describ$ 9 p>agraph 7#b74 ,su* paym5ts  
%all be ! only paym5ts to :i* featur$ & 
nonfeatur$ arti/s are entitl$ by virtue 
( ! transmissions describ$ 9 p>agraph   
7#b7 "u ! lic5se4  7#d7 ,rule (         
con/ruction ,?is section does n prohibit
 any o!r lic5se f direct+ ! lic5see to  
pay o!r royalties due to featur$ &      
nonfeatur$ arti/s = su* transmissions to
 ! collective designat$ to di/ribute    
receipts f ! lic5s+ ( transmissions 9   
accordance ) section #aad7;f74  7d7     
,relation%ip to ,/ate law  7#a7 ,9 g5]al
 ,no?+ 9 ?is section %all be con/ru$ to 
annul or limit any rights or rem$ies "u 
! common law or /atutes ( any ,/ate =   
s\nd record+s fix$ be=e ,febru>y #ae1   
#aigb1 except1 not)/&+ section #cja7;c71
 = ! foll[+3 7,a7 ,?is section preempts 
any claim ( common law copyright or     
equival5t "r "u ! laws ( any ,/ate aris+
 f any digital audio transmission t is  
made1 on & aft] ! date ( ! enactm5t (   
?is section1 ( a s\nd record+ fix$ on or

 aft] ,janu>y #a1 #aibc1 & be=e ,febru>y
 #ae1 #aigb4  7,b7 ,?is section preempts
 any claim ( common law copyright or    
equival5t "r "u ! laws ( any ,/ate aris+
 f any reproduction t is made1 on & aft]
 ! date ( ! enactm5t ( ?is section1 ( a 
s\nd record+ fix$ on or aft] ,janu>y #a1
 #aibc1 & be=e ,febru>y #ae1 #aigb1 & t 
w\ld satisfy ! requirem5ts = /atutory   
lic5s+ "u p>agraphs 7#a7 & 7#f7 (       
section #aab7;e71 if ! s\nd record+ 7   
fix$ on or aft] ,febru>y #ae1 #aigb4    
7,c7 ,?is section preempts any claim (  
common law copyright or equival5t "r "u 
! laws ( any ,/ate aris+ f any digital  
audio transmission or reproduction t is 
made1 be=e ! date ( ! enactm5t ( ?is    
section1 ( a s\nd record+ fix$ on or    
aft] ,janu>y #a1 #aibc1 & be=e ,febru>y 
#ae1 #aigb1 if--  7i7 ! digital audio   
transmission w\ld h satisfi$ !          
requirem5ts = /atutory lic5s+ "u section
 #aad7;d77#b7 or be5 exempt "u section  
#aad7;d77#a71 or ! reproduction w\ld h  
satisfi$ ! requirem5ts ( section        

#aab7;e77#a71 z ! case may be1 if ! s\nd
 record+ 7 fix$ on or aft] ,febru>y #ae1
 #aigb2 &  7ii7 except 9 ! case (       
transmissions t w\ld h be5 exempt "u    
section #aad7;d77#a71 ! transmitt+      
entity1 be=e ! end ( ! #bgj-;day p]iod  
beg9n+ on ! date ( ! enactm5t ( ?is     
section1 pays /atutory royalties &      
provides notice ( ! use ( ! relevant    
s\nd record+s 9 ! same mann] z is       
requir$ by regulations adopt$ by !      
,copyright ,royalty ,judges = s\nd      
record+s t are protect$ "u ?is title =  
all ! digital audio transmissions &     
reproductions satisfy+ ! requirem5ts =  
/atutory lic5s+ "u section #aad7;d77#b7 
& section #aab7;e77#a7 dur+ ! #c ye>s   
prior to ! date ( ! enactm5t ( ?is      
section4  7#b7 ,rule ( con/ruction =    
common law copyright ,= purposes (      
subp>agraphs 7,a7 ?r\gh 7,c7 ( p>agraph 
7#a71 a claim ( common law copyright or 
equival5t "r "u ! laws ( any ,/ate      
includes a claim t *>act]izes conduct   
subject to su* subp>agraphs z an        

unlawful di/ribution1 act ( record      
piracy1 or simil> violation4  7#c7 ,rule
 ( con/ruction = public p]=mance rights 
,no?+ 9 ?is section %all be con/ru$ to  
recognize or negate ! exi/5ce ( public  
p]=mance rights 9 s\nd record+s "u !    
laws ( any ,/ate4  7e7 ,limitations on  
rem$ies  7#a7 ,fair use2 uses by        
libr>ies1 ar*ives1 & educational        
in/itutions ,! limitations on !         
exclusive rights ( a copyright own]     
describ$ 9 sections #ajg1 #ajh1 &       
#aaj7a7 & 7#b7 %all apply to a claim "u 
subsection 7a7 = ! unau?oriz$ p]=mance (
 a s\nd record+ fix$ on or aft] ,janu>y 
#a1 #aibc1 & be=e ,febru>y #ae1 #aigb4  
7#b7 ,actions ,! limitations on actions 
describ$ 9 section #ejg %all apply to a 
claim "u subsection 7a7 = ! unau?oriz$  
p]=mance ( a s\nd record+ fix$ on or    
aft] ,janu>y #a1 #aibc1 & be=e ,febru>y 
#ae1 #aigb4  7#c7 ,mat]ial onl9e        
,section #eab %all apply to a claim "u  
subsection 7a7 = ! unau?oriz$ p]=mance (
 a s\nd record+ fix$ on or aft] ,janu>y 

#a1 #aibc1 & be=e ,febru>y #ae1 #aigb4  
7#d7 ,pr9ciples ( equity ,pr9ciples (   
equity apply to rem$ies = a violation ( 
?is section to ! same ext5t z su*       
pr9ciples apply to rem$ies = infr+em5t (
 copyright4  7#e7 ,fil+ requirem5t =    
/atutory damages & attorneys' fees  7,a7
 ,fil+ ( in=mation on s\nd record+s  7i7
 ,fil+ requirem5t ,except 9 ! case ( a  
transmitt+ entity t has fil$ contact    
in=mation = t transmitt+ entity "u      
subp>agraph 7,b71 9 any action "u ?is   
section1 an aw>d ( /atutory damages or (
 attorneys' fees "u section #ejd or #eje
 may be made ) respect to an unau?oriz$ 
transmission ( a s\nd record+ "u        
subsection 7a7 only if-- 7,i7 ! rights  
own] has fil$ ) ! ,copyright ,(fice a   
s*$ule t specifies ! title1 arti/1 &    
rights own] ( ! s\nd record+ & conta9s  
su* o!r in=mation1 z practicable1 z !   
,regi/] ( ,copyrights prescribes by     
regulation2 &  7,,ii7 ! transmission is 
made aft] ! end ( ! #ij-;day p]iod      
beg9n+ on ! date on :i* ! in=mation fil$

 "u subclause 7,i7 is index$ into !     
public records ( ! ,copyright ,(fice4   
7ii7 ,regulations ,! ,regi/] (          
,copyrights %all1 be=e ! end ( !        
#ahj-;day p]iod beg9n+ on ! date ( !    
enactm5t ( ?is section1 issue           
regulations e/abli%+ ! =m1 cont5t1 &    
proc$ures = ! fil+ ( s*$ules "u clause  
7i74 ,su* regulations %all provide t    
p]sons may reque/ t !y receive timely   
notification ( su* fil+s1 & %all set =? 
! mann] 9 :i* su* reque/s may be made4  
7,b7 ,fil+ ( contact in=mation =        
transmitt+ entities  7i7 ,fil+          
requirem5t ,! ,regi/] ( ,copyrights     
%all1 be=e ! end ( ! #cj-;day p]iod     
beg9n+ on ! date ( ! enactm5t ( ?is     
section1 issue regulations e/abli%+ !   
=m1 cont5t1 & proc$ures = ! fil+1 by any
 entity t1 z ( ! date ( ! enactm5t ( ?is
 section1 p]=ms s\nd record+s fix$ be=e 
,febru>y #ae1 #aigb1 by means ( digital 
audio transmissions1 ( contact in=mation
 = su* entity4  7ii7 ,"t limit on fil+s 
,! ,regi/] ( ,copyrights may accept     

fil+s "u clause 7i7 only until ! #ahj?  
day aft] ! date ( ! enactm5t ( ?is      
section4  7iii7 ,limitation on /atutory 
damages & attorneys' fees  7,i7         
,limitation ,an aw>d ( /atutory damages 
or ( attorneys' fees "u section #ejd or 
#eje may n be made1 aga9/ an entity t   
has fil$ contact in=mation = t entity "u
 clause 7i71 ) respect to an unau?oriz$ 
transmission by t entity ( a s\nd       
record+ "u subsection 7a7 if !          
transmission is made be=e ! end ( !     
#ij-;day p]iod beg9n+ on ! date on :i* !
 entity receives a notice t-- 7aa7 is   
s5t by or on behalf ( ! rights own] ( ! 
s\nd record+2  7bb7 /ates t ! entity is 
n legally au?oriz$ to transmit t s\nd   
record+ "u subsection 7a72 &  7cc7      
id5tifies ! s\nd record+ 9 a s*$ule     
con=m+ to ! requirem5ts prescrib$ by !  
regulations issu$ "u subp>agraph        
7,a77ii74  7,,ii7 ,undeliv]able notices 
,9 any case 9 :i* a notice "u subclause 
7,i7 is s5t to an entity by mail or     
c\ri] s]vice & ! notice is return$ to ! 

s5d] because ! entity ei!r is no long]  
locat$ at ! address provid$ 9 ! contact 
in=mation fil$ "u clause 7i7 or has     
refus$ to accept deliv]y1 or ! notice is
 s5t by electronic mail & is            
undeliv]able1 ! #ij-;day p]iod "u       
subclause 7,i7 %all beg9 on ! date ( !  
attempt$ deliv]y4  7,c7 ,section #dab   
,section #dab %all n limit an aw>d (    
/atutory damages "u section #ejd7;c7 or 
attorneys' fees "u section #eje )       
respect to an unau?oriz$ transmission ( 
a s\nd record+ "u subsection 7a74  7#f7 
,applicability ( o!r provisions  7,a7 ,9
 g5]al ,subject to subp>agraph 7,b71 no 
provision ( ?is title %all apply to or  
limit ! rem$ies available "u ?is section
 except z o!rwise provid$ 9 ?is section4
  7,b7 ,applicability ( def9itions ,any 
t]m us$ 9 ?is section t is def9$ 9      
section #aja %all h ! mean+ giv5 t t]m 9
 section #aja4  7f7 ,application (      
section #bcj safe h>bor ,= purposes (   
section #bcj ( ! ,communications ,act ( 
#aicd 7#dg ,u4,s4,c4 #bcj71 subsection  

7a7 %all be consid]$ to be a law p]ta9+ 
to intellectual prop]ty "u subsection   
7e77#b7 ( su* section4  7g7 ,rights own]
 def9$ ,9 ?is section1 ! t]m rights own]
 means ! p]son :o has ! exclusive "r to 
reproduce a s\nd record+ "u ! laws ( any
 ,/ate4  4  7b7 ,con=m+ am5dm5t ,! table
 ( *apt]s = title #ag1 ,unit$ ,/ates    
,code1 is am5d$ by add+ at ! end !      
foll[+ new *apt]3  #ad4,unau?oriz$      
digital p]=mance ( pre-#aigb s\nd       
record+s #adja  4  #bjc4 ,effective date
 ,?is title & ! am5dm5ts made by ?is    
title %all take effect on ! date ( !    
enactm5t ( ?is ,act4  ,,iii ,allocation 
= ,music ,produc]s  #cja4 ,%ort title   
,?is title may be cit$ z ! ,allocation =
 ,music ,produc]s ,act or ! ,,amp ,act4 
#cjb4 ,paym5t ( /atutory p]=mance       
royalties  7a7 ,lett] ( direction       
,section #aad7;g7 ( title #ag1 ,unit$   
,/ates ,code1 is am5d$ by add+ at ! end 
! foll[+ new p>agraph3  7#e7 ,lett] (   
direction  7,a7 ,9 g5]al ,a nonpr(it    
collective designat$ by ! ,copyright    

,royalty ,judges to di/ribute receipts f
 ! lic5s+ ( transmissions 9 accordance )
 subsection 7f7 %all adopt & reasonably 
implem5t a policy t provides1 9         
circum/ances det]m9$ by ! collective to 
be appropriate1 = acceptance (          
in/ructions f an arti/ payee id5tifi$ "u
 subp>agraph 7,a7 or 7,d7 ( p>agraph    
7#b7 to di/ribute1 to a produc]1 mix]1  
or s\nd eng9e] :o 0 "p ( ! creative     
process t creat$ a s\nd record+1 a      
portion ( ! paym5ts to :i* ! arti/ payee
 w\ld o!rwise be entitl$ f ! lic5s+ (   
transmissions ( ! s\nd record+4 ,9 ?is  
section1 su* in/ructions %all be ref]r$ 
to z a lett] ( direction4  7,b7         
,acceptance ( lett] ,to ! ext5t t !     
collective accepts a lett] ( direction  
"u subp>agraph 7,a71 ! p]son entitl$ to 
paym5t pursuant to ! lett] ( direction  
%all1 dur+ ! p]iod 9 :i* ! lett] (      
direction is 9 effect & c>ri$ out by !  
collective1 be treat$ = all purposes z !
 own] ( ! "r to receive su* paym5t1 & ! 
arti/ payee provid+ ! lett] ( direction 

to ! collective %all be treat$ z hav+ no
 int]e/ 9 su* paym5t4  7,c7 ,au?ority ( 
collective ,?is p>agraph %all n be      
con/ru$ 9 su* a mann] s t ! collective  
is n au?oriz$ to accept or act ^u paym5t
 in/ructions 9 circum/ances o!r ?an ^?  
to :i* ?is p>agraph applies4  4  7b7    
,additional provisions = record+s fix$  
be=e ,novemb] #a1 #aiie ,section        
#aad7;g7 ( title #ag1 ,unit$ ,/ates     
,code1 z am5d$ by subsection 7a71 is    
fur!r am5d$ by add+ at ! end ! foll[+   
new p>agraph3  7#f7 ,s\nd record+s fix$ 
be=e ,novemb] #a1 #aiie  7,a7 ,paym5t   
abs5t lett] ( direction ,a nonpr(it     
collective designat$ by ! ,copyright    
,royalty ,judges to di/ribute receipts f
 ! lic5s+ ( transmissions 9 accordance )
 subsection 7f7 79 ?is p>agraph ref]r$  
to z ! collective7 %all adopt &         
reasonably implem5t a policy t provides1
 9 circum/ances det]m9$ by ! collective 
to be appropriate1 = ! d$uction ( #b    
p]c5t ( all ! receipts t are collect$ f 
! lic5s+ ( transmissions ( a s\nd       

record+ fix$ be=e ,novemb] #a1 #aiie1 b 
:i* is )drawn f ! am\nt o!rwise payable 
"u p>agraph 7#b77;,d7 to ! record+ arti/
 or arti/s featur$ on ! s\nd record+ 7or
 ! p]sons convey+ rights 9 ! arti/s'    
p]=mance 9 ! s\nd record+71 & !         
di/ribution ( su* am\nt to "o or m      
p]sons describ$ 9 subp>agraph 7,b71 aft]
 d$uction ( co/s describ$ 9 p>agraph    
7#c7 or 7#d71 z applicable1 if ea* ( !  
foll[+ requirem5ts is met3 7i7          
,c]tification ( attempt to obta9 a lett]
 ( direction ,! p]son describ$ 9        
subp>agraph 7,b7 :o is to receive !     
di/ribution has c]tifi$ to ! collective1
 "u p5alty ( p]jury1 t--  7,i7 = a p]iod
 ( at lea/ #d mon?s1 t p]son made       
reasonable ef=ts to contact ! arti/     
payee = su* s\nd record+ to reque/ &    
obta9 a lett] ( direction in/ruct+ !    
collective to pay to t p]son a portion (
 ! royalties payable to ! featur$       
record+ arti/ or arti/s2 &  7,,ii7 dur+ 
! p]iod beg9n+ on ! date t p]son began !
 reasonable ef=ts describ$ 9 subclause  

7,i7 & end+ on ! date ( t p]son's       
c]tification to ! collective1 ! arti/   
payee did n affirm or d5y 9 writ+ !     
reque/ = a lett] ( direction4  7ii7     
,collective attempt to contact arti/    
,aft] receipt ( ! c]tification describ$ 
9 clause 7i7 & = a p]iod ( at lea/ #d   
mon?s be=e ! collective's fir/          
di/ribution to ! p]son describ$ 9       
subp>agraph 7,b71 ! collective attempt$1
 9 a reasonable mann] z det]m9$ by !    
collective1 to notify ! arti/ payee ( ! 
c]tification made by ! p]son describ$ 9 
subp>agraph 7,b74  7iii7 ,no objection  
receiv$ ,! arti/ payee did n1 z ( ! date
 t is #aj bus9ess days be=e ! date on   
:i* ! fir/ di/ribution is made1 submit  
to ! collective 9 writ+ an objection to 
! di/ribution4  7,b7 ,eligibility =     
paym5t ,a p]son %all be eligible =      
paym5t "u subp>agraph 7,a7 if ! p]son-- 
7i7 is a produc]1 mix]1 or s\nd eng9e] (
 ! s\nd record+2  7ii7 has ent]$ into a 
writt5 contract ) a record company      
involv$ 9 ! creation or lawful          

exploitation ( ! s\nd record+1 or ) !   
record+ arti/ or arti/s featur$ on !    
s\nd record+ 7or ! p]sons convey+ rights
 9 ! arti/s' p]=mance 9 ! s\nd record+71
 "u :i* ! p]son seek+ paym5t is entitl$ 
to p>ticipate 9 royalty paym5ts t are   
bas$ on ! exploitation ( ! s\nd record+ 
& are payable f royalties o!rwise       
payable to ! record+ arti/ or arti/s    
featur$ on ! s\nd record+ 7or ! p]sons  
convey+ rights 9 ! arti/s' p]=mance 9 ! 
s\nd record+72  7iii7 made a creative   
contribution to ! creation ( ! s\nd     
record+2 &  7iv7 submits a writt5       
c]tification to ! collective /at+1 "u   
p5alty ( p]jury1 t ! p]son meets !      
requirem5ts 9 clauses 7i7 ?r\gh 7iii7 & 
includes a true copy ( ! contract       
describ$ 9 clause 7ii74  7,c7 ,multiple 
c]tifications ,subject to subp>agraph   
7,d71 9 a case 9 :i* m ?an "o p]son     
describ$ 9 subp>agraph 7,b7 has met !   
requirem5ts = a di/ribution "u          
subp>agraph 7,a7 ) respect to a s\nd    
record+ z ( ! date t is #aj bus9ess days

 be=e ! date on :i* a di/ribution is    
made1 ! collective %all divide ! #b     
p]c5t di/ribution equally among all su* 
p]sons4  7,d7 ,objection to paym5t ,n   
lat] ?an #aj bus9ess days aft] ! date on
 :i* ! collective receives f ! arti/    
payee a writt5 objection to a           
di/ribution made pursuant to subp>agraph
 7,a71 ! collective %all cease mak+ any 
fur!r paym5t relat+ to su* di/ribution4 
,9 any case 9 :i* ! collective has made 
"o or m di/ributions pursuant to        
subp>agraph 7,a7 to a p]son describ$ 9  
subp>agraph 7,b7 be=e ! date t is #aj   
bus9ess days aft] ! date on :i* !       
collective receives f ! arti/ payee an  
objection to su* di/ribution1 !         
objection %all n affect t p]son's       
entitlem5t to any di/ribution made be=e 
! collective ceases su* di/ribution "u  
?is subp>agraph4  7,e7 ,own]%ip ( ! "r  
to receive paym5ts ,to ! ext5t t !      
collective det]m9es t a di/ribution w be
 made "u subp>agraph 7,a7 to a p]son    
describ$ 9 subp>agraph 7,b71 su* p]son  

%all1 dur+ ! p]iod cov]$ by su*         
di/ribution1 be treat$ = all purposes z 
! own] ( ! "r to receive su* paym5ts1 & 
! arti/ payee to :om su* paym5ts w\ld   
o!rwise be payable %all be treat$ z hav+
 no int]e/ 9 su* paym5ts4  7,f7 ,arti/  
payee def9$ ,9 ?is p>agraph1 ! t]m arti/
 payee means a p]son1 o!r ?an a p]son   
describ$ 9 subp>agraph 7,b71 :o owns !  
"r to receive all or "p ( ! receipts    
payable "u p>agraph 7#b77;,d7 ) respect 
to a s\nd record+4 ,9 a case 9 :i* !re  
are multiple arti/ payees ) respect to a
 s\nd record+1 an objection by "o su*   
payee %all apply only to t payee's %>e (
 ! receipts payable "u p>agraph         
7#b77;,d71 & does n preclude paym5t "u  
subp>agraph 7,a7 f ! %>e ( an arti/     
payee t does n s object4  4  7c7        
,te*nical & con=m+ am5dm5ts ,section    
#aad7;g7 ( title #ag1 ,unit$ ,/ates     
,code1 z am5d$ by subsections 7a7 & 7b71
 is fur!r am5d$--  7#a7 9 p>agraph 7#b71
 by /rik+ ,an ag5t designat$ & ins]t+   
,except z provid$ = 9 p>agraph 7#f71 a  

nonpr(it collective designat$ by !      
,copyright ,royalty ,judges2  7#b7 9    
p>agraph 7#c7--  7,a7 by /rik+ nonpr(it 
ag5t designat$ & ins]t+ nonpr(it        
collective designat$ by ! ,copyright    
,royalty ,judges2  7,b7 by /rik+ ano!r  
designat$ ag5t & ins]t+ ano!r designat$ 
nonpr(it collective2 &  7,c7 by /rik+   
ag5t & ins]t+ collective ea* subsequ5t  
place x appe>s2  7#c7 9 p>agraph 7#d7-- 
7,a7 by /rik+ designat$ ag5t & ins]t+   
nonpr(it collective2 &  7,b7 by /rik+   
ag5t & ins]t+ collective ea* subsequ5t  
place x appe>s2 &  7#d7 by add+ at ! end
 ! foll[+ new p>agraph3  7#g7           
,preemption ( ,/ate prop]ty laws ,!     
hold+ & di/ribution ( receipts "u       
section #aab & ?is section by a nonpr(it
 collective designat$ by ! ,copyright   
,royalty ,judges 9 accordance ) ?is     
subsection & regulations adopt$ by !    
,copyright ,royalty ,judges %all sup]s$e
 & preempt any ,/ate law 7includ+ common
 law7 conc]n+ es*eatm5t or ab&on$       
prop]ty1 or any analog\s provision1 t   

might o!rwise apply4  4  #cjc4          
,effective date  7a7 ,9 g5]al ,except z 
provid$ 9 subsection 7b71 ?is title & ! 
am5dm5ts made by ?is title %all take    
effect on ! date ( ! enactm5t ( ?is     
,act4  7b7 ,delay$ effective date ,!    
effective date = p>agraphs 7#e77;,b7 &  
7#f77;,e7 ( section #aad7;g7 ( title    
#ag1 ,unit$ ,/ates ,code1 z add$ by     
section #cjb1 %all be ,janu>y #a1 #bjbj4
  ,pass$ ! ,h\se ( ,repres5tatives      
,april #be1 #bjah4;,cl]k4