Section 116. Scope of exclusive rights in nondramatic musical works:_Copyright Law of the United States of America Contained in Title 17 of the United States Code

Public performances by means of coin-operated phonorecord players.

(a) Limitation on Exclusive Right.--In the case of a nondramatic

musical work embodied in a phonorecord, the exclusive right under

clause (4) of section 106 to perform the work publicly by means of a

coin-operated phonorecord player is limited as follows:

(1) The proprietor of the establishment in which the public performance

takes place is not liable for infringement with respect to such public

performance unless--

(A) such proprietor is the operator of the phonorecord player; or

(B) such proprietor refuses or fails, within one month after receipt by

registered or certified mail of a request, at a time during which the

certificate required by clause (1)(C) of subsection (b) is not affixed

to the phonorecord player, by the copyright owner, to make full

disclosure, by registered or certified mail, of the identity of the

operator of the operator of the phonorecord player.

(2) The operator of the coin-operated phonorecord player may obtain a

compulsory license to perform the work publicly on that phonorecord

player by filing the application, affixing the certificate, and paying

the royalties provided by subsection (b).

(b) Recordation of Coin-Operated Phonorecord Player, Affixation of

Certificate, and Royalty Payable under Compulsory License.--Any

operator who wishes to obtain a compulsory license for the public

performance of works on a coin-operated phonorecord player shall

fulfill the following requirements:

(A) Before or within one month after such performances are made

available on a particular phonorecord player, and during the month of

January in each succeeding year that such performances are made

available on that particular phonorecord player, the operator shall

file in the Copyright Office, in accordance with requirements that the

Tribunal (if and when the Tribunal has been constituted), shall

prescribe by regulation, an application containing the name and address

of the operator of the phonorecord player and the manufacturer and

serial number or other explicit identification of the phonorecord

player, and deposit with the Register of Copyrights a royalty fee for

the current calendar year of $8 for that particular phonorecord player.

If such performances are made available on a particular phonorecord

player for the first time after July 1 of any year, the royalty fee to

be deposited for the remainder of that year shall be $4.

(B) Within twenty days of receipt of an application and a royalty fee

pursuant to subclause (A), the Register of Copyrights shall issue to

the applicant a certificate for the phonorecord player.

prescribed by subclause (B) of this clause is issued, or within ten

days after the date of issue of the certificate, the operator shall

affix to the particular phonorecord player, in a position where it can

be readily examined by the public, the certificate, issued by the

made by such operator under subclause (A) of this clause with respect

to that phonorecord player.

(2) Failure to file the application, to affix the certificate, or to

pay royalty required by clause (1) of this subsection renders the

public performance actionable as an act of infringement under section

501 and fully subject to the remedies provided by sections 502 through

506 and 509.

(1) The Register of Copyrights shall receive all fees deposited under

this section and, after deducting the reasonable costs incurred by the

Treasury of the United States, in such manner as the Secretary of the

Treasury directs. All funds held by the Secretary of the Treasury

shall be invested in interest-bearing United States securities for

later distribution with interest by the Copyright Royalty Tribunal as

provided by this title. The Register shall submit to the Copyright

Royalty Tribunal, on an annual bases, a detailed statement of account

covering all fees received for the relevant period provided by

subsection (b).

(2) During the month of January in each year, every person claiming to

be entitled to compulsory license fees under this section for

performances during the preceding twelve-month period shall file a

claim with the Copyright Royalty Tribunal, in accordance with

requirements that the Tribunal shall prescribe by regulation. Such

claim shall include an agreement to accept as final, except as provided

in section 810 of this title, the determination of the Copyright

Royalty Tribunal in any controversy concerning the distribution of

royalty fees deposited under subclause (A) of subsection (b)(1) of this

section to which the claimant is a party. Notwithstanding any

provisions of the antitrust laws, for purposes of this subsection any

claimants may agree among themselves as to the proportionate division

of compulsory licensing fees among them, may lump their claims together

and file them jointly or as a single claim, or may designate a common

agent to receive payment on their behalf.

(3) After the first day of October of each year, the Copyright Royalty

Tribunal shall determine whether there exists a controversy concerning

the distribution of royalty fees deposited under subclause (A) of

subsection (b)(1). If the Tribunal determines that no such controversy

exists, it shall, after deducting its reasonable administrative costs

under this section, distribute such fees to the copyright owners

entitled, or to their designated agents. If it finds that such a

controversy exists, it shall, pursuant to chapter 8 of this title,

conduct a proceeding to determine the distribution of royalty fees.

(4) The fees to be distributed shall be divided as follows:

(A) to every copyright owner not affiliated with a performing rights

society, the pro rata share of the fees to be distributed to which such

(B) to the performing rights societies, the remainder of the fees to be

distributed in such pro rata shares as they shall by agreement

stipulate among themselves, or, if they fail to agree, the pro rate

share to which such performing rights societies prove entitlement.

sufficient to satisfy all claims with respect to which a controversy

exists, but shall have discretion to proceed to distribute any amounts

that are not in controversy.

(5) The Copyright Royalty Tribunal shall promulgate regulations under

which persons who can reasonably be expected to have claims may, during

the year in which performances take place, without expense to or

harassment of operators or proprietors of establishments in which

phonorecord players are located, have such access to such

establishments and to the phonorecord players located therein and such

opportunity to obtain information with respect thereto as may be

reasonably necessary to determine, by sampling procedures or otherwise,

the proportion of contribution of the musical works of each such person

to the earnings of the phonorecord players for which fees shall have

been deposited. Any person who alleges that he or she has been denied

the access permitted under the regulations prescribed by the Copyright

Royalty Tribunal may bring an action in the United States District

Court for the District of Columbia for the cancellation of the

compulsory license of the phonorecord player to which such access has

been denied, and the court shall have the power to declare the

compulsory license thereof invalid from the date of issue thereof.

(d) Criminal Penalties.--Any person who knowingly makes a false

representation of a material fact in an application filed under clause

(1)(A)of subsection (b), or who knowingly alters a certificate issued

under clause (1)(B) of subsection (b) or knowingly affixes such

certificate to a phonorecord player other than the one it covers, shall

be fined not more than $2,500.

(e) Definitions.--As used in this section, the following terms and

their variant forms mean the following:

(1) A "coin-operated phonorecord player" is a machine or device that--

(A) is employed solely for the performance of non-dramatic musical

works by means of phonorecords upon being activated by insertion of

coins, currency, tokens, or other monetary units or their equivalent;

(B) is located in an establishment making no direct or indirect charge

for admission;

available for performance on it, which list is affixed to the

phonorecord player or posted in the establishment in a prominent

position where it can be readily examined by the public; and

(D) affords a choice of works available for performance and permits the

choice to be made by the patrons of the establishment in which it is

located.

(2) An "operator" is any person who, alone or jointly with others:

(A) owns a coin-operated phonorecord player; or

(B) has the power to make a coin-operated phonorecord player available

for placement in an establishment for purposes of public performance; or

musical works made available for public performance on a coin-operated

phonorecord player.

(3) A "performing rights society" is an association or corporation that

licenses the public performance of nondramatic musical works on behalf

of the copyright owners, such as the American Society of Composers,

Authors and Publishers, Broadcast Music, Inc., and SESAC, Inc.