,,ii  #aae? ,,congress  #b;d ,session   
,s4 #bccd  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,janu>y #bd1 #bjah,mr4 
,hat* 7= himself1 ,mr4 ,:iteh\se1 ,mr4  
,alex&]1 ,ms4 ,h>ris1 ,mr4 ,cork]1 ,mr4 
,durb91 ,mr4 ,isakson1 ,mr4 ,coons1 &   
,mr4 ,jones7 introduc$ ! foll[+ bill2   
:i* 0 read twice & ref]r$ to !          
,committee on ! ,judici>y  ,a ,,bill    
,to am5d title #ag1 ,unit$ ,/ates ,code1
 to provide cl>ity ) respect to1 & to   
mod]nize1 ! lic5s+ sy/em = musical works
 "u section #aae ( t title1 to ensure   
fairness 9 ! e/abli%m5t ( c]ta9 rates & 
fees "u sections #aad & #aae ( t title1 
& = o!r purposes4  #a4 ,%ort title ,?is 
,act may be cit$ z ! ,music             
,mod]nization ,act ( #bjah4  #b4        
,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[+3  7#a7 7,a7 ,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] ( ! "w2 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--     
7,i7 ! copyright own] ( ! s\nd record+  
fir/ fix$ su* s\nd record+ "u ! au?ority
 ( ! copyright own] ( ! musical "w & is 
fur!r au?oriz$ by ! copyright own] ( !  
musical "w to make & di/ribute          
phonorecords embody+ su* "w to ! public 

9 ! ,unit$ ,/ates2 &  7,,ii7 ! copyright
 own] ( ! s\nd record+ 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 ,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#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 ?is section to make &         
di/ribute phonorecords ( a musical "w   
o!r ?an by means ( digital phonorecord  
deliv]y %all1 be=e or )9 #cj 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 9 ! ,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 ?is section to make
 & di/ribute phonorecords ( a musical "w
 by means ( digital phonorecord         
deliv]y--  7,a7 prior to ! lic5se       
availability date set =? 9 subsection   
7e71 %all1 be=e or )9 #cj days aft] fir/
 mak+ any su* digital phonorecord       
deliv]y1 s]ve a notice ( int5tion to d s

 on ! copyright own]4 ,! notice1 :i* may
 n be fil$ ) ! ,copyright ,(fice1 %all  
comply1 9 =m1 cont5t1 & mann] ( s]vice1 
) requirem5ts t ! ,regi/] ( ,copyrights 
%all prescribe by regulation2 &  7,b7 on
 or aft] ! lic5se availability date1    
%all1 be=e mak+ any su* digital         
phonorecord deliv]y1 foll[ ! proc$ure   
set =? 9 subsection 7d77#b71 except z   
provid$ 9 p>agraph 7#c74  7#c7 ,record  
company d[nload lic5ses ,not)/&+ any?+  
to ! contr>y 9 ?is section1 a record    
company may1 on or aft] ! lic5se        
availability date1 obta9 a lic5se to    
make & di/ribute1 or au?orize ! mak+ &  
di/ribution (1 digital phonorecord      
deliv]ies ( musical works 9 ! =m (      
p]man5t d[nloads 9 ! mann] describ$ 9   
p>agraph 7#b77;,a74 ,a record company t 
obta9s a compulsory lic5se = p]man5t    
d[nloads z p]mitt$ "u ?is p>agraph %all 
provide /atem5ts ( acc\nt & pay         
royalties z provid$ 9 subsection        
7c77#e74  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 ! case (    
phonorecords made & di/ribut$ by means (
 digital phonorecord deliv]y prior to ! 
lic5se availability date1 ! failure to  
s]ve ! notice ( int5tion requir$ by     
p>agraph 7#b77;,a7 =ecloses !           
possibility ( a compulsory lic5se "u    
p>agraph 7#b77;,a74 ,9 ei!r case1 9 !   
abs5ce ( a volunt>y lic5se1 ! failure to
 obta9 a compulsory lic5se r5d]s ! mak+ 
& di/ribution ( phonorecords1 includ+ by
 means ( digital phonorecord deliv]y1   
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 ,9 ! case (      
phonorecords made & di/ribut$ by means (
 digital phonorecord deliv]y on or aft] 
! lic5se availability date1 ! failure to

 comply ) p>agraph 7#b77;,b71 or1 if    
applicable1 p>agraph 7#c71 =ecloses !   
possibility ( a compulsory lic5se "u ?is
 section4 ,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 9 subsection 7c7-- 7,a7  
by /rik+ p>agraphs 7#a7 & 7#b7 & ins]t+ 
! foll[+3  7#a7 ,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$4  7#b7       
,except z provid$ by p>agraph 7#a71 = e 
phonorecord made & di/ribut$ "u a       
compulsory lic5se "u ?is section 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,b7 ?r\gh   
7,e7 ( p>agraph 7#c7 & *apt] #h ( ?is   
title4 ,= purposes ( ?is p>agraph1 a    
phonorecord is consid]$ di/ribut$ if !  
p]son ex]cis+ ! compulsory lic5se has   
volunt>ily & p]man5tly p>t$ ) its       
possession4  2  7,b7 by /rik+ p>agraph  
7#c77;,a7 & ins]t+ ! foll[+3  7#c7 7,a7 
,= 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,b7 ?r\gh 7,e7 & *apt] #h ( ?is title4 
2  7,c7 9 p>agraph 7#c77;,c7-- 7i7 by   
/rik+ ! second s5t5ce2 &  7ii7 by add+  
at ! end ! foll[+ new s5t5ce3 ,!        
adm9i/rative assessm5t to be paid by    
digital music provid]s & significant    
nonblanket lic5sees "u subsection 7d7   
%all be e/abli%$ 9 sep>ate proce$+s be=e
 ! ,copyright ,royalty ,judges z provid$
 9 subsection 7d77#g742  7,d7 by /rik+  

p>agraph 7#c77;,d7 & ins]t+ ! foll[+3   
7,d7 ,! s*$ule ( reasonable rates & t]ms
 det]m9$ by ! ,copyright ,royalty       
,judges %all1 subject to subp>agraph    
7,e71 be b9d+ on all copyright own]s (  
nondramatic musical works & p]sons      
entitl$ to obta9 a compulsory lic5se "u 
subsection 7a77#a7 dur+ ! p]iod specifi$
 9 subp>agraph 7,c71 su* o!r p]iod z may
 be det]m9$ pursuant to subp>agraphs    
7,b7 & 7,c71 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  2  7,e7 9       
p>agraph 7#c77;,e77i71 by /rik+         
,libr>ian ( ,congress &2  7,f7 9        
p>agraph 7#c77;,g77i77,,ii7--  7i7 by   
/rik+ own] ( ! copyright 9 ! s\nd       
record+ or !2 &  7ii7 by /rik+ to       
di/ribute or au?orize ! di/ribution1 by 
means ( a digital phonorecord deliv]y & 
ins]t+ 1 or by a record company pursuant
 to an individual d[nload lic5se1 to    
make & di/ribute phonorecords by means (
 digital phonorecord deliv]y2  7,g7 9   
p>agraph 7#d71 by /rik+ ! fir/ s5t5ce & 
ins]t+ ,a compulsory lic5se obta9$ 9    
accordance ) 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+742   
7,h7 9 p>agraph 7#e71 by /rik+ ,royalty 
paym5ts %all & ins]t+ ,except z provid$ 
9 p>agraphs 7#d77;,a77i7 & 7#aj77;,b7 ( 
subsection 7d71 royalty paym5ts %all2 & 
7,i7 9 p>agraph 7#f7--  7i7 by /rik+ ,if
 ! copyright own] & ins]t+ ,9 ! case ( a
 lic5se obta9$ "u subsection 7b77#a71   
7b77#b77;,a71 or 7b77#c71 if ! copyright
 own]2 &  7ii7 by add+ at ! end ! foll[+
 s5t5ce3 ,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;,e742    
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 ,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 designat$ "u p>agraph       
7#c77;,b7 to make & di/ribute digital   
phonorecord deliv]ies ( musical works   
?r\gh "o or m cov]$ activities4  7,a7   
,includ$ activities ,a blanket lic5se   
obta9$ "u ?is subsection-- 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,b72  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 ^? set =? 9 subsections             
7d77#a77;,a77i7 & 7ii74  7,b7 ,o!r      
lic5ses ,a volunt>y lic5se = cov]$      
activities ent]$ into betwe5 "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 !
 copyright own] ( a s\nd record+        
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?ority2 provid$1   
h[ev]1 t--  7i7 :]e a volunt>y or       
individual d[nload lic5se applies1 !    
lic5se au?ority provid$ "u ! blanket    
lic5se %all exclude any musical works   
7or %>es !re(7 subject to ! volunt>y or 
individual d[nload lic5se2  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;,a72 &     
7iii7 ! rates & t]ms ( any volunt>y     
lic5se %all be subject to ! second      
s5t5ce ( clause 7i7 & clause 7ii7 (     

subsection 7c77#c77;,e7 & p>agraph      
7#i77;,c7 z applicable4  7,c7           
,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,d7 ,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
 "u ?is subsection to engage 9 "o or m  
cov]$ activities by submitt+ a notice ( 

lic5se to ! me*anical lic5s+ collective 
describ$ 9 p>agraph 7#c7 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 days aft] receipt1 ! blanket     
lic5se %all be effective z ( ! date !   
notice ( lic5se 0 provid$ by ! digital  
music provid]4  7iii7 ,a notice ( lic5se
 %all n be reject$ by ! me*anical lic5s+
 collective unless-- 7,i7 ! digital     
music provid] or notice ( lic5se does n 
meet all requirem5ts ( ?is section or   
applicable regulations1 9 :i* case !    
requirem5ts at issue %all be specifi$ ) 
reasonable p>ticul>ity 9 ! notice (     
rejection1 or  7,,ii7 ! digital music   
provid] has _h a lic5se "u ?is          
subsection 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 7iii71 !  
digital music provid] %all h #cj 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  7,b7 ,blanket lic5se effective
 date ,blanket lic5ses "u ?is subsection
 %all be made available by ! me*anical  
lic5s+ collective z ( ! lic5se          
availability date specifi$ 9 subsection 
7e77#ae74 ,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 n-=-pr(it entity1 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 copyright own]s ( musical     
works t toge!r repres5t ! greate/ %>e ( 
! 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 ( !       
enactm5t date z foll[s3  7,i7 ,)9 #ij   
days ( ! enactm5t date1 ! ,regi/] %all  
publi% notice 9 ! ,f$]al ,regi/]        
solicit+ in=mation to assi/ 9 id5tify+ !
 appropriate entity to s]ve z !         
me*anical lic5s+ collective4  7,,ii7    
,aft] review+ ! in=mation reque/$ "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 set =? 9 subp>agraph 7,a7 %\ld  
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 f ! 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 & adm9i/rative 
responsibilities f ! exi/+ me*anical    
lic5s+ collective to ! new entity4  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 set 
=? 9 ?is subsection3  7,i7 ,(f] &       
adm9i/] blanket lic5ses = cov]$         
activities1 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 a    
publicly accessible database ( musical  

works 7& %>es ( su* works7 & copyright  
own]s1 & 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 ef=ts to
 en=ce rights & obligations "u ?is      
subsection1 includ+ 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$+s be=e ! ,copyright        
,royalty ,judges to set rates & t]ms "u 
?is section4  7,,xii7 ,ma9ta9 records ( 
its activities & engage 9 & respond to  
audits z contemplat$ "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 & subsection        
7e77#ca71 ! me*anical lic5s+ collective 
may also adm9i/]1 or assi/ 9 adm9i/]+1  
volunt>y or individual d[nload lic5ses  
issu$ by copyright own]s = uses (       
musical works1 = :i* ! me*anical lic5s+ 
collective %all *>ge reasonable fees =  
su* s]vices4  7iii7 ,re/riction on      
lobby+ ,! me*anical lic5s+ collective   
%all n engage 9 gov]nm5t lobby+         
activities2 provid$1 h[ev]1 t x may     
engage 9 ! activities set =? 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/+ ( #aj vot+ memb]s & #c nonvot+  
memb]s1 z foll[s3  7,i7 ,eight vot+     
memb]s %all be music publi%]s to :i*    
songwrit]s h assign$ exclusive rights ( 
reproduction & di/ribution ( musical    
works ) respect to cov]$ activities2    
provid$1 h[ev]1 t no su* music publi%]  
memb] may be own$ by1 or "u common      
control )1 any o!r bo>d memb]4  7,,ii7  
,two 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$4  7,,iii7 ,"o nonvot+ memb]   
%all be a repres5tative ( ! nonpr(it    
trade association ( music publi%]s t    
repres5ts ! greate/ %>e ( ! lic5sor     
m>ket = uses ( musical works 9 cov]$    
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 subsection        
7d77#e77;,b74 ,o!rwise1 ! nonvot+ memb] 
%all be ! nonpr(it trade association (  
digital lic5sees t repres5ts ! greate/  
%>e ( ! 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 ( ,am]ican           
songwrit]s4  7ii7 ,bo>d meet+s ,! bo>d (
 directors %all meet no less ?an #b     
times p] ye> & discuss matt]s p]t95t to 
! op]ations1 includ+ ! budget1 ( ! bo>d 
( directors4  7iii7 ,op]ations advisory 
committee ,! bo>d ( directors ( !       
me*anical lic5s+ collective %all e/abli%
 an op]ations advisory committee consi/+
 ( no few] ?an #f 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] (--  7,i7 copyright own]s ( 
musical works :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 #f ( :i* %all be  
copyright own]s ( musical works & #d (  
: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 #f memb]s1 :i* committee    
%all include an equal numb] (           
repres5tatives ( copyright own]s (      
musical works & pr(essional songwrit]s4 
7,e7 ,musical works database  7i7       

,e/abli%m5t & ma9t5ance ( database ,!   
me*anical lic5s+ collective %all e/abli%
 & ma9ta9 a database ( 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* !y 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 available--  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 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*$ works 7&   
%>es ( works7 9 ! database1 ! musical   
works database %all include--  7,i7 to !
 ext5t available-- 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 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* copyright own] ( musical 
works %all engage 9 comm]cially         
reasonable ef=ts to deliv] to !         
me*anical lic5s+ collective = 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$1 to ! ext5t practicable4  7v7   
,accessibility ( database ,! musical "w 
database %all be accessible to ! public 
9 a se>*able1 onl9e =mat free ( *>ge4 ,!
 me*anical lic5s+ collective %all also  
make su* database available free ( *>ge 
9 a bulk1 ma*9e-readable =mat1 via a    
widely available s(tw>e application1    
to--  7,i7 digital music provid]s op]at+
 "u valid notices ( lic5se2  7,,ii7     
significant nonblanket lic5sees2 &      
7,,iii7 au?oriz$ v5dors ( ! entities    

describ$ 9 subclauses 7,i7 & 7,,ii74    
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 ,9   
g5]al ,! me*anical lic5s+ collective    
%all receive1 review1 & confirm or      
reject notices ( lic5se f digital music 
provid]s1 z provid$ 9 subsection        
7d77#b77;,a74 ,! collective %all ma9ta9 
a curr5t1 publicly accessible li/ (     
blanket lic5ses obta9$ by digital music 
provid]s "u ?is subsection t includes   
contact in=mation = ! lic5sees & !      
effective dates ( su* lic5ses4  7ii7    
,public li/ ( notices ,! me*anical      
lic5s+ collective %all receive notices (
 nonblanket activity f significant      
nonblanket lic5sees1 z provid$ 9        
subsection 7d77#f77;,a74 ,! collective  
%all ma9ta9 a curr5t1 publicly          
accessible li/ ( notices ( nonblanket   
activity submitt$ by significant        

nonblanket lic5sees t includes contact  
in=mation = su* 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 & 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 its   
records2 &  7,,iii7 deposit royalties t 
_c be di/ribut$ due to an inability to  
id5tify or locate a copyright own] ( a  

musical "w 7or %>e !re(71 or due to a   
p5d+ dispute be=e ! dispute resolution  
committee ( ! me*anical lic5s+          
collective1 9 an int]e/-be>+ acc\nt z   
provid$ 9 subp>agraph 7,h77ii74  7ii7   
,regulations requir$ ,! ,regi/] (       
,copyrights %all adopt regulations      
reg>d+ adju/m5ts to reports ( usage by  
digital music provid]s1 includ+ e/abli%+
 me*anisms to acc\nt = ov]paym5ts &     
und]paym5ts made 9 prior p]iods4  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 f ! date on :i* ! funds 7 receiv$  
by ! me*anical lic5s+ collective1 or at 
lea/ #c ye>s f ! 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 %>e ( 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 subp>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   
its records1 subject to ! foll[+        
requirem5ts1 & 9 accordance ) ! policies
 & proc$ures e/abli%$ "u clause 7ii73   
7,i7 ,! fir/ su* di/ribution %all occur 
9 ! fir/ full cal5d> ye> to comm5ce aft]
 ! lic5se availability date1 ) at lea/  

"o su* di/ribution to take place 9 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 & 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 p>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 & individual       
d[nload lic5ses = cov]$ activities1 &   

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 subsection 7d77#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 9 accordance ) ?is     
subp>agraph1 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 
at lea/ #ij 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 !y lic5se or   
adm9i/] musical works = cov]$           
activities1 9 accordance ) applicable   
contractual t]ms2 provid$1 h[ev]1 t     
not)/&+ any agreem5t to ! contr>y--     
7,i7 su* paym5ts & cr$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 set =? 9 subp>agraph        
7,h77ii7 p5d+ resolution ( ! dispute by 
! committee1 writt5 agreem5t ( ! affect$
 p>ties1 or pursuant to a b9d+ judicial 
det]m9ation or arbitration2 &  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 & di/ributions 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      
records & sy/ems ( ! me*anical lic5s+   
collective1 z well z und]ly+ data1      
accord+ to g5]ally accept$ audit+ /&>ds 
& subject to applicable confid5tiality  
requirem5ts prescrib$ by ! ,regi/] (    
,copyrights "u subsection 7d77#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 !  
copyright own]7s7 %all file ) !         
,copyright ,(fice a notice ( int5t to   
conduct an audit ( ! me*anical lic5s+   

collective1 & %all simultane\sly deliv] 
a copy ( su* notice to ! me*anical      
lic5s+ collective4 ,! ,regi/] (         
,copyrights %all cause ! notice ( audit 
to be publi%$ 9 ! ,f$]al ,regi/] )9 #cj 
days ( receipt4  7,v7 ,! qualifi$       
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
 ! audit+ copyright own]7s72 provid$1   
h[ev]1 t be=e provid+ a f9al audit      
report to su* copyright own]7s71 !      
qualifi$ 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]7s7 %all 
be> ! co/ ( ! audit4 ,9 case ( an       
und]paym5t to ! copyright own]7s71 !    
me*anical lic5s+ collective %all pay !  
am\nts ( any su* und]paym5t to ! audit+ 
copyright own]7s71 z appropriate4 ,9    

case ( an ov]paym5t by ! me*anical      
lic5s+ collective1 ! me*anical lic5s+   
collective may debit ! acc\nts ( !      
audit+ copyright own]7s7 = 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 ^? set =? h]e92 provid$1      
h[ev]1 t notice ( ! audit %all /ill be  
provid$ to & publi%$ by ! ,copyright    
,(fice z set =? 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 subsection 7d77#ab77;,c7 
= a p]iod ( no less ?an #g ye>s f 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 obta9$ "u ?is subsection 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#e72 provid$1 h[ev]1 t 

mon?ly report+ %all be due #de days1 r  
?an #bj 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 "u
 ?is subsection z well z usage data =   
musical works us$ 9 cov]$ activities "u 
volunt>y & individual d[nload lic5ses4  
,9 its report ( usage1 ! digital music  
provid] %all--  7,i7 ) respect to ea*   
musical "w-- 7aa7 provide id5tify+      
in=mation = ! s\nd record+ embody+ su*  
"w1 includ+ s\nd record+ "n1 featur$    
arti/1 produc] &1 to ! ext5t available1 
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 embody2  7bb7  
to ! ext5t available1 provide in=mation 
conc]n+ au?or%ip & own]%ip ( !          
applicable rights 9 ! musical "w1       
includ+ songwrit]7s71 publi%] "n7s7 &   
respective own]%ip %>e7s71 & !          

int]national /&>d musical "w code2 &    
7cc7 provide ! numb] ( digital          
phonorecord deliv]ies ( su* "w1 includ+ 
limit$ d[nloads & int]active /reams2    
7,,ii7 id5tify & provide contact        
in=mation = all copyright own]s (       
musical works 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  7,b7 ,procurem5t ( s\nd record+
 in=mation ,9 addition to obta9+ s\nd   
record+ names & featur$ arti/s1 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       
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 !y 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-ye> p]iod to cov] a   
v]ification p]iod ( no m ?an ! #c prec$+
 full cal5d> ye>s1 & su* audit may n    
audit records = any su* #c-ye>          
v]ification p]iod m ?an once4  7,,ii7 ,!
 audit %all be conduct$ by a qualifi$   
auditor1 :o %all p]=m ! audit dur+ !    
ord9>y c\rse ( bus9ess by exam9+ !      
books1 records1 & sy/ems ( ! digital    
music provid]1 z well z und]ly+ data1   
accord+ to g5]ally accept$ audit+ /&>ds 
& subject to applicable confid5tiality  
requirem5ts prescrib$ by ! ,regi/] (    
,copyrights "u subsection 7d77#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 & %all simultane\sly deliv] a  
copy ( su* notice to ! digital music    
provid]4 ,! ,regi/] ( ,copyrights %all  
cause ! notice ( audit to be publi%$ 9 !
 ,f$]al ,regi/] )9 #cj days ( receipt4  
7,v7 ,! qualifi$ 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+ collective2 provid$1   
h[ev]1 t be=e provid+ a f9al audit      
report to ! copyright own]7s71 !        
qualifi$ 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$it  
to ! digital music provid]4  7,,vii7 ,a 
digital music provid] may n ass]t       
section #ejg or any o!r ,f$]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 provid$ t 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 ^? set =? h]e92 provid$1      
h[ev]1 t notice ( ! audit %all /ill be  
provid$ to & publi%$ by ! ,copyright    
,(fice z set =? 9 clause 7i77,,iv74     
7,e7 ,default "u blanket lic5se  7i7    
,condition ( default ,a digital music   
provid] %all be consid]$ g5]ally 9      
default "u a blanket lic5se obta9$ "u   
?is subsection 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   
days or long]4  7ii7 ,notice ( default &
 t]m9ation ,9 case ( a g5]al 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 days f ! 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  7#e7  
,digital lic5see coord9ator  7,a7 ,9    
g5]al ,! digital lic5see coord9ator %all
 be a s+le entity t-- 7i7 is a n-=-pr(it
 entity1 n own$ by any o!r entity1 t is 
designat$ by ! ,regi/] ( ,copyrights 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/ %>e
 ( ! lic5see m>ket = uses ( musical     
works 9 cov]$ activities1 z measur$ ov] 
! prec$+ #c full 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 ( !      
enactm5t date1 9 accordance ) ! same    
proc$ure z set =? = 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 set =? 9 subp>agraph 7,a7 %\ld  
be designat$1 9 accordance ) ! same     
proc$ure z set =? = ! me*anical lic5s+  

collective 9 p>agraph 7#c77;,b77ii74    
7iii7 ,inability to designate ,if !     
,regi/] is unable to id5tify an entity t
 fulfills ! qualifications set =? 9     
subp>agraph 7,a7 t is will+ to s]ve z   
digital lic5see coord9ator1 ! ,regi/]   
%all decl9e to designate a digital      
lic5see coord9ator4 ,! ,regi/]'s        
inability 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 set =? 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 %all n engage 9      
gov]nm5t lobby+ activities2 provid$1    
h[ev]1 t x may engage 9 ! activities set
 =? 9 clause 7i77,,iii71 7,,iv71 & 7,v74
  7#f7 ,requirem5ts = significant       
nonblanket lic5sees  7,a7 ,9 g5]al  7i7 

,notice ( activity ,n lat] ?an #de days 
aft] ! lic5se availability date1 or #de 
days aft] ! end ( ! fir/ full cal5d>    
mon? 9 :i* an entity initially qualifies
 z a significant nonblanket lic5see z   
def9$ 9 subsection 7e77#bi71 :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 paym5t ( !      
adm9i/rative assessm5t z 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 paym5t ( !         
adm9i/rative assessm5t1 to ! me*anical  
lic5s+ collective1 su* reports & paym5ts
 to be submitt$ n lat] ?an #de 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 assessm5t2 provid$1  
h[ev]1 t %\ld su* entity once aga9      
qualify z a significant nonblanket      
lic5see1 x %all aga9 be requir$ 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 subsection   
7d77#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 total co/s4  7ii7 ,/atute (          
limitations = en=cem5t action ,any      
action describ$ 9 ?is subp>agraph %all  
be comm5c$ )9 ! "t p]iod set =? 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$y t may be    
available to any p>ty at law or 9       
equity4  7#g7 ,fund+ ( me*anical lic5s+ 
collective  7,a7 ,9 g5]al ,! total co/s 
( ! me*anical lic5s+ collective %all be 
fund$ 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  
lic5se "u ?is subsection2 &  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 any    
volunt>y contributions by digital music 
provid]s & significant nonblanket       
lic5sees %all be det]m9$ by private     
negotiation & agreem5t2 provid$1 h[ev]1 
t--  7,i7 ! date & am\nt ( any volunt>y 
contribution to ! me*anical lic5s+      
collective %all be docum5t$ 9 a writ+   
sign$ by an au?oriz$ ag5t ( ! me*anical 
lic5s+ collective & ! contribut+ p>ty1 &
  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 ,any su*      
volunt>y contribution %all be treat$ =  
purposes ( an adm9i/rative assessm5t    
proce$+ z a g5]al (fset to total co/s ( 
! me*anical lic5s+ collective t w\ld    
o!rwise be recov]$ ?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 total co/s ( !
 me*anical lic5s+ collective1 !         
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] total   
co/s ,! adm9i/rative assessm5t %all be  
us$ solely & exclusively to fund ! total
 co/s ( ! me*anical lic5s+ collective4  
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 total co/s ( !      
me*anical lic5s+ collective1 z su* total

 co/s are def9$ 9 subsection 7e77#ca72  
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 ! co/s ( ! me*anical lic5s+    
collective 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 n only anticipat$ future   
total co/s & collections ( !            
adm9i/rative assessm5t1 b also1 z       
applicable--  7aa7 any portion ( pa/    
actual 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 total co/s ( !        
me*anical lic5s+ collective1 result+ 9 a
 surplus2 &  7cc7 ! am\nt ( any volunt>y
 contributions by digital music provid]s
 or significant nonblanket lic5sees 9   
relevant p]iods1 z 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 "o ye> ( ! 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*$ule = submission by ! p>ties (    
in=mation t may be relevant to e/abli%+ 
! adm9i/rative assessm5t1 includ+ actual
 & anticipat$ 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$]al ,regi/] by ! ,copyright ,royalty 
,judges1 )9 #i mon?s ( comm5cem5t ( !   
proce$+ contemplat$ by ?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 9 a proce$+ to occur no
 m ?an once e #b ye>s1 9 accordance ) ! 
foll[+ proc$ure3  7,i7 ,! me*anical     
lic5s+ collective1 digital lic5see      
coord9ator1 or "o or m int]e/$ copyright
 own]s1 digital music provid]s or       
significant nonblanket lic5sees may file
 a petition ) ! ,copyright ,royalty     
,judges 9 ! mon? ( ,janu>y to comm5ce a 
proce$+ to adju/ ! adm9i/rative         
assessm5t1 if at lea/ #b ye>s h expir$  
s9ce ! date ( ! mo/ rec5t det]m9ation ( 
! adm9i/rative assessm5t by ! ,copyright
 ,royalty ,judges4  7,,ii7 ,notice ( !  
comm5cem5t ( su* proce$+ %all be publi%$
 9 ! ,f$]al ,regi/] 9 ! mon? ( ,febru>y1
 along ) a s*$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]s or significant nonblanket
 lic5sees t h notifi$ ! ,copyright      
,royalty ,judges ( _! desire to         
p>ticipate4  7,,iii7 ,! adju/$          
adm9i/rative assessm5t1 :i* %all be     
support$ by a writt5 record1 %all be    
publi%$ 9 ! ,f$]al ,regi/] no lat] ?an  
#i mon?s aft] ! publication ( ! notice (
 comm5cem5t ( ! adju/m5t proce$+4 ,!    
adju/$ adm9i/rative assessm5t %all take 
effect z ( ,janu>y #a ( ! foll[+ ye>4   
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+      
collective1 on ! "o h&1 & ! 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 on ! o!r2 provid$1 h[ev]1 t
 ! ,copyright ,royalty ,judges %all h ! 
discretion to reject any su* agreem5t = 
good cause %[n4 ,an adm9i/rative        
assessm5t adopt$ "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$]al ,regi/]4  7vii7 ,appeal (    
adm9i/rative assessm5t ,! det]m9ation ( 
an adm9i/rative assessm5t by !          
,copyright ,royalty ,judges %all be     
appealable1 )9 #cj days aft] publication
 9 ! ,f$]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* appeal2 provid$1      
h[ev]1 t ! me*anical lic5s+ collective1 
digital lic5see coord9ator1 digital     
music provid]s1 & significant nonblanket
 lic5sees %all implem5t appropriate     
f9ancial or o!r measures )9 #c mon?s (  
any modification ( ! assessm5t to       
reflect & acc\nt = su* outcome4  7viii7 
,regulations ,! ,copyright ,royalty     
,judges may adopt regulations to gov]n !
 conduct ( proce$+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$+ to det]m9e rates &    
t]ms = activities "u ?is section z      
describ$ 9 subsection 7c77#c77;,c72     
provid$1 h[ev]1 t ei!r may ga!r &       
provide f9ancial & o!r in=mation = ! use
 ( a p>ty to su* a proce$+ & 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    
lic5ses "u ?is subsection1 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$ies to :i* x may be entitl$ "u ?is  
title4  7,c7 ,int]im rate agreem5ts ,=  
any cov]$ activity = :i* no rate or t]ms
 h be5 e/abli%$ by ! ,copyright ,royalty
 ,judges1 ! me*anical lic5s+ collective 
& a digital music provid] may agree to  
an int]im rate & t]ms = su* activity2   

provid$1 h[ev]1 t any su* int]im rate & 
t]ms--  7i7 %all be treat$ 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 except z may o!rwise be agre$  
by ! p>ties4  7#i7 ,transition to       
blanket lic5ses  7,a7 ,sub/itution (    
blanket lic5se ,z ( ! lic5se            
availability date1 a blanket lic5se     
obta9$ by a digital music provid] "u ?is
 subsection %all1 )\t any int]ruption 9 
lic5se au?ority enjoy$ by su* digital   
music provid]1 be automatically         
sub/itut$ = & sup]s$e any exi/+ lic5se  
previ\sly obta9$ by ! digital music     
provid] f a copyright own] "u ?is       
section to engage 9 "o or m cov]$       
activities ) respect to a musical "w2   
provid$1 h[ev]1 t ! =ego+ %all n apply  
to au?ority obta9$ f a record company to
 make & di/ribute p]man5t d[nloads      

unless & until su* record company       
t]m9ates su* au?ority 9 writ+ z ( ! 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 z ( !
 lic5se availability date1 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 z ( 
! lic5se availability date w rema9 9    
effect unless & until x expires accord+ 
to its t]ms1 or ! p>ties agree to am5d  
or t]m9ate ! 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$iately   
prior to ! lic5se availability date1 &  
^? t]ms %all cont9ue to apply unless &  
until su* lic5se is t]m9at$ or am5d$1 or
 ! p>ties ent] into a new volunt>y      

lic5se4  7,d7 ,fur!r acceptance (       
notices = cov]$ activities by ,copyright
 ,(fice ,z ( ! 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]$ activities2 provid$1   
h[ev]1 t !re %all be no liability       
pursuant to section #eja = !            
reproduction or di/ribution ( a musical 
"w 7or %>e !re(7 "u a validly fil$      
notice ( int5tion ?r\gh ! lic5se        
availability date4  7#aj7 ,prior        
unlic5s$ uses  7,a7 ,limitation on      
liability 9 g5]al ,a copyright own] t   
comm5ces an action pursuant to 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#c77;,a7 & *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 z ( !  
enactm5t date ?r\gh ! 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 
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 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 include3  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 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+ songwrit] 
& publi%] "n7s71 p]c5tage own]%ip       
%>e7s71 & 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 ?ird-p>ty v5dors on comm]cially   
reasonable t]ms2 provid$1 h[ev]1 t a    
digital music provid] may rely on its   
own bulk electronic mat*+ process if x  
has capabilities comp>able to or bett]  

?an su* ?ird-p>ty (f]+s4  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*$
 "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 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#e72  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 z ( ! 
mon?ly royalty report+ p]iod comm5c+ on 
! lic5se availability date1 beg9 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*$ "w 7or %>e !re(7 is n id5tifi$ &
 locat$ by ! lic5se availability date1 !
 digital music provid] %all--  7aa7 )9  
#de 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#e71 & 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 z ( ! mon?ly royalty report+     
p]iod comm5c+ on ! lic5se availability  
date1 beg9 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 set =? 
9 subsection 7c77#c77;,b7 %all apply to 
negotiations & agreem5ts betwe5 & among 
copyright own]s & p]sons entitl$ to     

obta9 a compulsory lic5se = cov]$       
activities "u ?is subsection1 & common  
ag5ts act+ on _! behalf1 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#c77;,b7 & subp>agraph   
7,a71 except = ! adm9i/rative assessm5t1
 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 _! behalf2  
provid$1 h[ev]1 t--  7i7 ea* copyright  
own] %all e/abli% ! royalty rates &     
mat]ial lic5se t]ms ( any su* volunt>y  

lic5se individually & n 9 agreem5t1     
comb9ation1 or conc]t ) any o!r         
copyright own]2  7ii7 ea* p]son entitl$ 
to obta9 a compulsory lic5se "u ?is     
section %all e/abli% ! royalty rates &  
mat]ial lic5se t]ms ( any su* volunt>y  
lic5se individually & n 9 agreem5t1     
comb9ation1 or conc]t ) any o!r digital 
music provid]2 &  7iii7 ! me*anical     
lic5s+ collective %all ma9ta9 !         
confid5tiality ( ! volunt>y lic5ses 9   
accordance ) ! confid5tiality provisions
 prescrib$ by ! ,regi/] ( ,copyrights "u
 subsection 7d77#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
 set =? 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,,vi72 provid$1 h[ev]1 t x  

may be nam$ z a /akehold] 9 an action   
betwe5 copyright own]s if x is hold+    
disput$ funds t are ! subject ( su*     
action4 ,= 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#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 lic5se 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    
compulsory lic5se e/abli%$ h]eund] %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 z ( ! 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 set  
=? 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;,i77ii74  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 rate "u ?is   
section4  7#c7 ,adm9i/rative assessm5t  
,! t]m adm9i/rative assessm5t means !   
fee to be paid by digital music provid]s
 & significant nonblanket lic5sees t is 
e/abli%$ pursuant to subsection         
7d77#g77;,d74  7#d7 ,blanket lic5se ,!  
t]m blanket lic5se means a compulsory   
lic5se to engage 9 cov]$ activities z   
describ$ 9 subsection 7d77#a74  7#e7    
,budget ,! t]m 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 ( total co/s4  7#f7        
,copyright own] ,! t]m copyright own]-- 
7,a7 means ! own] ( ! exclusive "r (    
reproduction or di/ribution 9 a musical 
"w1 9 all or 9 "p1 z provid$ 9 section  
#bja ( ?is title2 &  7,b7 does n ref] to
 own]%ip ( any o!r "r4  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 is   
subject to compulsory lic5s+ "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 lic5s$ "u ?is         
subsection--  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 describ$ 9 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 ( ! ,music 
,mod]nization ,act ( #bjah4  7#ab7      

,individual d[nload lic5se ,! t]m       
individual d[nload lic5se means a lic5se
 obta9$ by a record company "u          
subsection 7b77#c7 to make & di/ribute1 
or au?orize ! mak+ & di/ribution (1     
p]man5t d[nloads embody+ a specific     
musical "w 7or %>e ( a "w74  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 ,janu>y #a     

foll[+ ! second anniv]s>y ( ! enactm5t (
 ,music ,mod]nization ,act ( #bjah4     
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$4  7#ah7       
,me*anical lic5s+ collective ,! t]m     
me*anical lic5s+ collective means !     
entity describ$ 9 subsection            
7d77#c77;,a74  7#ai7 ,musical works     
database ,! t]m musical works database  
means ! database describ$ 9 subsection  
7d77#c77;,e74  7#bj7 ,notice ( lic5se ,!
 t]m notice ( lic5se means a notice f a 
digital music provid] provid$ "u        
subsection 7d77#b77;,a7 = purposes (    
obta9+ a blanket lic5se to engage 9     
cov]$ activities "u subsection 7d74     
7#ba7 ,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 x has be5 
engag+ 9 cov]$ activities4  7#bb7       
,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$4  7#bc7 ,qualifi$ auditor ,! t]m
 qualifi$ auditor means an indep5d5t1   
c]tifi$ public acc\ntant ) exp]i5ce     
p]=m+ music royalty audits4  7#bd7      
,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        
*annels4  7#be7 ,report ( usage ,! t]m  
report ( usage means a report reflect+  
an entity's usage ( musical works 9     
cov]$ activities z describ$ 9 subsection

 7d77#d77;,a74  7#bf7 ,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#bg7     
,s]vice ,! t]m s]vice1 z us$ 9 relation 
to cov]$ activities1 means any site or  
o!r facility ?r\gh :i* s\nd record+s (  
musical works are made available by     
digital transmission to memb]s ( !      
public4  7#bh7 ,%>e ,! t]m %>e1 z appli$
 to a musical "w1 means a fractional    
own]%ip int]e/ 9 su* "w4  7#bi7         
,significant nonblanket lic5see ,! t]m  
significant nonblanket lic5see means an 
entity1 includ+ a gr\p ( entities "u    
common own]%ip or control t1 act+ "u !  
au?ority ( "o or m volunt>y or          
individual d[nload lic5ses1 (f]s a      
s]vice engag$ 9 cov]$ activities1 :]e   
su* entity or gr\p ( entities--  7,a7 is
 n curr5tly op]at+ "u a blanket lic5se  
obta9$ "u ?is subsection & !re=e is n   
obligat$ to provide reports ( usage     
reflect+ cov]$ activities "u subsection 

7d77#d77;,a72  7,b7 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 &   
7,c7 ei!r-- 7i7 at any "t 9 a cal5d>    
mon?1 makes m ?an #e1jjj diff]5t s\nd   
record+s ( musical works available ?r\gh
 its s]vice2 or  7ii7 d]ives rev5ue or  
o!r consid]ation 9 connection ) su*     
cov]$ activities great] ?an #ej1jjj     
doll>s 9 a cal5d> mon?1 or total rev5ue 
or o!r consid]ation great] ?an #ejj1jjj 
doll>s dur+ ! prec$+ #ab cal5d> mon?s4  
7#cj7 ,songwrit] ,! t]m songwrit] means 
! au?or ( all or "p ( a musical "w1     
includ+ a compos] or lyrici/4  7#ca7    
,total co/s ,! t]m total co/s means !   
total co/s ( e/abli%+1 ma9ta9+1 & op]at+
 ! me*anical lic5s+ collective to       
fulfill its /atutory functions1 includ+ 
/>tup co/s2 f9anc+1 legal1 & insurance  
co/s2 inve/m5ts 9 in=mation te*nology1  
infra/ructure1 & o!r long-t]m res\rces2 

outside v5dor co/s2 co/s ( lic5s+1      
royalty adm9i/ration1 & en=cem5t (      
rights2 co/s ( bad debt2 & co/s (       
automat$ & manual ef=ts to id5tify &    
locate copyright own]s ( musical works  
7& %>es !re(7 & mat* s\nd record+s to ! 
musical works !y embody2 provid$1 h[ev]1
 t total co/s %all n include any add$   
co/s incurr$ by ! me*anical lic5s+      
collective to provide s]vices "u        
volunt>y lic5ses4  7#cb7 ,unclaim$      
accru$ royalties ,! t]m unclaim$ accru$ 
royalties means accru$ royalties        
eligible = di/ribution "u subsection    
7d77#c77;,j74  7#cc7 ,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$4  7#cd7 ,volunt>y lic5se ,!   
t]m volunt>y lic5se means a lic5se = use
 ( a musical "w 7or %>e !re(7 o!r ?an a 
compulsory lic5se obta9$ "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 9 p>agraph 7#a71 by /rik+ ,! rates 
applicable "u sections                  
#aad7;f77#a77;,b71 #aae1 & #aaf %all be 
calculat$ to a*ieve ! foll[+ objectives 
& ins]t+ ,! rates applicable "u sections
 #aad7;f77#a77;,b7 & #aaf %all be       
calculat$ to a*ieve ! foll[+ objectives2
  7#b7 by r$esignat+ p>agraph 7#h7 z    
p>agraph 7#i72 &  7#c7 by ins]t+ aft]   
p>agraph 7#g7 ! foll[+ new p>agraph3    
7#h7 ,to det]m9e ! adm9i/rative         
assessm5t to be paid by digital music   
provid]s "u section #aae7;d74 ,!        
provisions ( section #aae7;d7 %all apply
 to ! conduct ( proce$+s by ! ,copyright
 ,royalty ,judges "u section #aae7;d7 & 
n ! proc$ures set =? 9 ?is section1 or  
section #hjc1 #hjd1 or #hje4  4  7c7    
,effective date ( am5d$ 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$]al        
,regulations ,)9 #i mon?s aft] ! date ( 
! enactm5t ( ?is ,act1 ! ,copyright     
,royalty ,judges %all am5d ! exi/+      
regulations = section #aae 9 "p #che (  
title #ag1 ,code ( ,f$]al ,regulations1 
to con=m def9itions us$ 9 su* "p to !   
def9itions ( ! same t]ms set =? 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
  7e7 ,be/ practices work+ gr\p ,n lat] 
?an #a ye> aft] ! date ( ! enactm5t (   
?is ,act1 ! ,regi/] ( ,copyrights %all  
e/abli% a work+ gr\p consi/+ (          
repres5tatives ( ! me*anical lic5s+     
collective1 ! digital lic5see           
coord9ator1 copyright own]s1 digital    
music provid]s1 s\nd record+ own]s1 &   
p]=m+ rights societies to consid] &     

advise on be/ practices to m9imize !    
incid5ce ( unid5tifi$ & unmat*$ musical 
works & facilitate & enc\rage ! ex*ange 
( own]%ip in=mation & prompt access to  
su* in=mation by & among su* p>ties4    
#c4 ,am5dm5t to section #aad  7a7       
,repeal ,subsection 7i7 ( section #aad (
 title #ag1 ,unit$ ,/ates ,code1 is     
repeal$4  7b7 ,proce$+s n affect$ ,!    
repeal ( section #aad7;i7 ( title #ag1  
,unit$ ,/ates ,code1 by subsection 7a7  
%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  7c7      
,decisions & prec$5ts n affect$ ,!      
repeal ( section #aad7;i7 ( title #ag1  
,unit$ ,/ates ,code1 by subsection 7a7  
%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  #d4 ,r&om ,assignm5t ( ,rate    
,c\rt ,proce$+s ,section #acg ( title   
#bh1 ,unit$ ,/ates ,code1 is am5d$--    
7#a7 by /rik+ ,! bus9ess & ins]t+ 7a7 ,!
 bus9ess2 &  7#b7 by add+ at ! end !    
foll[+ new subsection3  7b7 7#a7 ,9 !   
case ( any p]=m+ rights society subject 
to a cons5t decree1 any application = ! 
det]m9ation ( a lic5se fee = ! public   
p]=mance ( music 9 accordance ) !       
applicable cons5t decree %all be made 9 
! di/rict c\rt ) jurisdiction ov] t     
cons5t decree & assign$ by lot 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
 7,a7 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$1 or 7,b7 a judge  
to :om ano!r proce$+ conc]n+ an         

application = ! det]m9ation ( a         
reasonable lic5se fee is assign$ at ! "t
 ( ! fil+ ( ! application4 ,?is         
provision does n apply to applications  
to det]m9e reasonable lic5se fees made  
by individual proprietors "u section    
#eac ( title #ag4  7#b7 ,no?+ 9 p>agraph
 7#a7 %all abrogate ! "r ( any p>ty to !
 applicable cons5t decree to make an    
application = a con/ruction ( any       
provision ( ! applicable cons5t decree  
to ! judge to :om cont9u+ jurisdiction  
ov] ! applicable cons5t decree is       
curr5tly assign$4 ,if a p>ty to a cons5t
 decree makes su* an application 9      
connection ) any rate proce$+1 su*      
proce$+ %all be /ay$ until ! f9al       
det]m9ation ( ! con/ruction application4
  4