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S 2500 IS

To provide fair compensation to artists for use of their sound recordings.

December 18, 2007

Mr. LEAHY (for himself, Mr. HATCH, Mrs. FEINSTEIN, and Mr. CORKER) introduced the following bill; which was read twice and referred to the Committee on the Judiciary

To provide fair compensation to artists for use of their sound recordings.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Performance Rights Act'.

SEC. 2. EQUITABLE TREATMENT FOR TERRESTRIAL BROADCASTS.

(a) Performance Right Applicable to Radio Transmissions Generally- Section 106(6) of title 17, United States Code, is amended to read as follows:

`(6) in the case of sound recordings, to perform the copyrighted work publicly by means of an audio transmission.'.

(b) Inclusion of Terrestrial Broadcasts in Existing Performance Right- Section 114(d)(1) of title 17, United States Code, is amended--

(1) in the matter preceding subparagraph (A), by striking `a digital' and inserting `an'; and

(2) by striking subparagraph (A).

(c) Inclusion of Terrestrial Broadcasts in Existing Statutory License System- Section 114(j)(6) of title 17, United States Code, is amended by striking `digital'.

(d) Eliminating Regulatory Burdens for Terrestrial Broadcast Stations- Section 114(d)(2) is amended in the matter preceding subparagraph (A) by striking `subsection (f) if' and inserting `subsection (f) if, other than for a nonsubscription and noninteractive broadcast transmission,'.

SEC. 3. SPECIAL TREATMENT FOR SMALL, NONCOMMERCIAL, EDUCATIONAL, AND RELIGIOUS STATIONS AND CERTAIN USES.

(a) Small, Noncommercial, Educational, and Religious Radio Stations-

(1) IN GENERAL- Section 114(f)(2) of title 17, United States Code, is amended by adding at the end the following:

`(D) Notwithstanding the provisions of subparagraphs (A) through (C), each individual terrestrial broadcast station that has gross revenues in any calendar year of less than $1,250,000 may elect to pay for its over-the-air nonsubscription broadcast transmissions a royalty fee of $5,000 per year, in lieu of the amount such station would otherwise be required to pay under this paragraph. Such royalty fee shall not be taken into account in determining royalty rates in a proceeding under chapter 8, or in any other administrative, judicial, or other Federal Government proceeding.

`(E) Notwithstanding the provisions of subparagraphs (A) through (C), each individual terrestrial broadcast station that is a public broadcasting entity as defined in section 118(f) may elect to pay for its over-the-air nonsubscription broadcast transmissions a royalty fee of $1,000 per year, in lieu of the amount such station would otherwise be required to pay under this paragraph. Such royalty fee shall not be taken into account in determining royalty rates in a proceeding under chapter 8, or in any other administrative, judicial, or other Federal Government proceeding.'.

(2) PAYMENT DATE- A payment under subparagraph (D) or (E) of section 114(f)(2) of title 17, United States Code, as added by paragraph (1), shall not be due until the due date of the first royalty payments for nonsubscription broadcast transmissions that are determined, after the date of the enactment of this Act, under such section 114(f)(2) by reason of the amendment made by section 2(b)(2) of this Act.

(b) Transmission of Religious Services; Incidental Uses of Music- Section 114(d)(1) of title 17, United States Code, as amended by section 2(b), is further amended by inserting the following before subparagraph (B):

`(A) an eligible nonsubscription transmission of--

`(i) services at a place of worship or other religious assembly; and

`(ii) an incidental use of a musical sound recording;'.

SEC. 4. AVAILABILITY OF PER PROGRAM LICENSE.

Section 114(f)(2)(B) of title 17, United States Code, is amended by inserting after the second sentence the following new sentence: `Such rates and terms shall include a per program license option for terrestrial broadcast stations that make limited feature uses of sound recordings.'.

SEC. 5. NO HARMFUL EFFECTS ON SONGWRITERS.

(a) Preservation of Royalties on Underlying Works- Section 114(i) of title 17, United States Code, is amended in the second sentence by striking `It is the intent of Congress that royalties' and inserting `Royalties'.

(b) Public Performance Rights and Royalties- Nothing in this Act shall adversely affect in any respect the public performance rights of or royalties payable to songwriters or copyright owners of musical works.

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