To harmonize rate setting standards for
copyright licenses under sections 112 and 114 of title 17, United States Code,
and for other purposes.
IN THE SENATE OF THE UNITED STATES
January 11, 2007
Mrs. Feinstein (for
herself, Mr. Graham,
Mr. Biden, and Mr. Alexander) introduced the following bill; which
was read twice and referred to the Committee on the Judiciary
A BILL
To harmonize rate setting standards for
copyright licenses under sections 112 and 114 of title 17, United States Code,
and for other purposes.
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
“Platform Equality and Remedies for
Rights Holders in Music Act of 2007” or the
“Perform Act of
2007”.
SEC. 2.Rate setting
standards.
(a) Section 112
licenses.—Section 112(e)(4) of
title 17, United States Code, is amended in the third sentence by striking
“fees that would have been negotiated in the marketplace between a
willing buyer and a willing seller” and inserting “the fair market
value of the rights licensed under this subsection”.
(b) Section 114
licenses.—Section 114(f) of
title 17, United States Code, is amended—
(1) by striking paragraph (1);
(2) by redesignating paragraphs (2), (3), (4),
and (5) as paragraphs (1), (2), (3), and (4), respectively; and
(3) in paragraph (1) (as redesignated under
this subsection)—
(A) in subparagraph (A), by striking all after
“Proceedings” and inserting “under chapter 8 shall determine
reasonable rates and terms of royalty payments for transmissions during 5-year
periods beginning on January 1 of the second year following the year in which
the proceedings are to be commenced, except where a different transitional
period is provided under section 6(b)(3) of the Copyright Royalty and
Distribution Reform Act of 2004, or such other period as the parties may
agree.”;
(B) in subparagraph (B)—
(i) in the first sentence, by striking
“affected by this paragraph” and inserting “under this
section”;
(ii) in the second sentence, by striking
“eligible nonsubscription transmission”; and
(iii) in the third sentence—
(I) by striking “eligible nonsubscription
services and new subscription”; and
(II) by striking “rates and terms that
would have been negotiated in the marketplace between a willing buyer and a
willing seller” and inserting “the fair market value of the rights
licensed under this section”;
(iv) in the fourth sentence, by striking
“base its” and inserting “base their”;
(v) in clause (i), by striking
“and” after the semicolon;
(vi) in clause (ii), by striking the period and
inserting “; and”;
(vii) by inserting after clause (ii) the
following:
“(iii) the degree to which reasonable recording
affects the potential market for sound recordings, and the additional fees that
are required to be paid by services for
compensation.”;
and
(viii) in the matter following clause (ii), by
striking “described in subparagraph (A)”; and
(C) by striking subparagraph (C) and inserting
the following:
“(C) The procedures under subparagraphs (A) and
(B) shall also be initiated pursuant to a petition filed by any copyright
owners 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 preexisting subscription digital audio
transmission services, eligible nonsubscription services, or new subscription
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.”.
(c) Content
protection.—Section 114(d)(2)
of title 17, United States Code, is amended—
(1) in subparagraph (A)—
(A) in clause (ii), by striking
“and” after the semicolon;
(B) in clause (iii), by adding
“and” after the semicolon; and
(C) by adding after clause (iii) the
following:
“(iv) the transmitting entity takes no
affirmative steps to authorize, enable, cause or induce the making of a copy or
phonorecord by or for the transmission recipient and uses technology that is
reasonably available, technologically feasible, and economically reasonable to
prevent the making of copies or phonorecords embodying the transmission in
whole or in part, except for reasonable recording as defined in this
subsection;”;
(2) in subparagraph (C)—
(A) by striking clause (vi); and
(B) by redesignating clauses (vii) through (ix)
as clauses (vi) through (viii), respectively; and
(3) by adding at the end the following:
“For
purposes of subparagraph (A)(iv), the mere offering of a transmission and
accompanying metadata does not in itself authorize, enable, cause, or induce
the making of a phonorecord. Nothing shall preclude or prevent a performing
rights society or a mechanical rights organization, or any entity owned in
whole or in part by, or acting on behalf of, such organizations or entities,
from monitoring public performances or other uses of copyrighted works
contained in such transmissions. Any such organization or entity shall be
granted a license on either a gratuitous basis or for a de minimus fee to cover
only the reasonable costs to the licensor of providing the license, and on
reasonable, nondiscriminatory terms, to access and retransmit as necessary any
content contained in such transmissions protected by content protection or
similar technologies, if such licenses are for purposes of carrying out the
activities of such organizations or entities in monitoring the public
performance or other uses of copyrighted works, and such organizations or
entities employ reasonable methods to protect any such content accessed from
further
distribution.”.
(d) Definition.—Section 114(j) of title 17, United States
Code, is amended—
(1) by redesignating paragraphs (10) through
(15) as paragraphs (11) through (16), respectively; and
(2) by inserting after paragraph (9) the
following:
“(10)(A) A ‘reasonable recording’ means
the making of a phonorecord embodying all or part of a performance licensed
under this section for private, noncommercial use where technological measures
used by the transmitting entity, and which are incorporated into a recording
device—
“(i) permit automated recording or playback
based on specific programs, time periods, or channels as selected by or for the
user;
“(ii) do not permit automated recording or
playback based on specific sound recordings, albums, or artists;
“(iii) do not permit the separation of component
segments of the copyrighted material contained in the transmission program
which results in the playback of a manipulated sequence; and
“(iv) do not permit the redistribution,
retransmission or other exporting of a phonorecord embodying all or part of a
performance licensed under this section from the device by digital outputs or
removable media, unless the destination device is part of a secure in-home
network that also complies with each of the requirements prescribed in this
paragraph.
“(B) Nothing in this paragraph shall prevent a
consumer from engaging in non-automated manual recording and playback in a
manner that is not an infringement of
copyright.”.
(e) Technical and
conforming amendments.—
(1) SECTION
114.—Section 114(f) of title
17, United States Code (as amended by subsection (b) of this section), is
further amended—
(A) in paragraph (1)(B), in the first sentence,
by striking “paragraph (3)” and inserting “paragraph
(2)”; and
(B) in paragraph (4)(C), by striking
“under paragraph (4)” and inserting “under paragraph
(3)”.
(2) SECTION
804.—Section 804(b)(3)(C) of
title 17, United States Code, is amended—
(A) in clause (i), by striking “and
114(f)(2)(C)”; and
(B) in clause (iv), by striking “or
114(f)(2)(C), as the case may be”.
SEC. 3.Register of copyrights
meeting and report.
(a) Meeting.—Not later than 90 days after the date of
enactment of this Act, the Register of Copyrights shall convene a meeting among
affected parties to discuss whether to recommend creating a new category of
limited interactive services, including an appropriate premium rate for such
services, within the statutory license contained in section 114 of title 17,
United States Code.
(b) Report.—Not later than 90 days after the convening
of the meeting under subsection (a), the Register of Copyrights shall submit a
report on the discussions at that meeting to the Committee on the Judiciary of
the Senate and the Committee on the Judiciary of the House of
Representatives.