Sec. 4. Ensuring platform parity
612 words·~3 min read·
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Section 114(f) of title 17, United States Code, is amended— by striking paragraphs
(1)and
(2)and inserting the following: Proceedings under chapter 8 shall determine reasonable rates and terms of royalty payments for transmissions subject to statutory licensing under subsection (d)(2) during the 5-year period beginning on January 1 of the second year following the year in which the proceedings are to be commenced pursuant to subparagraph
(A)or
(B)of section 804(b)(3), as the case may be, or such other period as the parties may agree. The parties to each proceeding shall bear their own costs. The schedule of reasonable rates and terms determined by the Copyright Royalty Judges shall, subject to paragraph (2), be binding on all copyright owners of sound recordings and entities performing sound recordings affected by this paragraph during the 5-year period specified in subparagraph (A), or such other period as the parties may agree. Such rates and terms shall distinguish among the different types of services then in operation and shall include a minimum fee for each such type of service, such differences to be based on criteria including the quantity and nature of the use of sound recordings and the degree to which use of the service may substitute for or may promote the purchase of phonorecords by consumers. The Copyright Royalty Judges shall establish rates and terms that most clearly represent the rates and terms that would have been negotiated in the marketplace between a willing buyer and a willing seller. In determining such rates and terms, the Copyright Royalty Judges— shall base their decision on economic, competitive, and programming information presented by the parties, including— whether use of the service may substitute for or may promote the sales of phonorecords or otherwise may interfere with or may enhance the sound recording copyright owner’s other streams of revenue from the copyright owner’s sound recordings; and the relative roles of the copyright owner and the transmitting entity in the copyrighted work and the service made available to the public with respect to relative creative contribution, technological contribution, capital investment, cost, and risk; and may consider the rates and terms for comparable types of audio transmission services and comparable circumstances under voluntary license agreements. The procedures under subparagraphs
(A)and
(B)shall also be initiated pursuant to a petition filed by any copyright owner of sound recordings or any transmitting entity indicating that a new type of service on which sound recordings are performed is or is about to become operational, for the purpose of determining reasonable terms and rates of royalty payments with respect to such new type of service for the period beginning with the inception of such new type of service and ending on the date on which the royalty rates and terms for eligible nonsubscription services and new subscription services, or preexisting services, as the case may be, most recently determined under subparagraph
(A)or
(B)and chapter 8 expire, or such other period as the parties may agree. ; and by redesignating paragraphs (3), (4), and
(5)as paragraphs (2), (3), and (4), respectively. 114 Section 114(f) of title 17, United States Code, as amended by subsection (a), is further amended in paragraph (4)(C), as so redesignated, by striking under paragraph
(4)and inserting under paragraph
(3). 801 Section 801(b)(1) of title 17, United States Code, is amended by striking 114(f)(1)(B), 115, and inserting 115 . 804 Section 804(b)(3)(C) of title 17, United States Code, is amended— in clause (i), by striking and 114(f)(2)(C) ; in clause (iii)(II), by striking 114(f)(4)(B)(ii) and inserting 114(f)(3)(B)(ii) ; and in clause (iv), by striking or 114(f)(2)(C), as the case may be .