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Title 17 — Copyrights

Chapter 1 — Subject Matter and Scope of Copyright

§ 116. Negotiated licenses for public performances by means of coin-operated phonorecord players

Statutory text

(a)

Applicability of Section.—

This section applies to any nondramatic musical work embodied in a phonorecord.

(b)

Negotiated Licenses.—

(1)

Authority for negotiations.—

Any owners of copyright in works to which this section applies and any operators of coin-operated phonorecord players may negotiate and agree upon the terms and rates of royalty payments for the performance of such works and the proportionate division of fees paid among copyright owners, and may designate common agents to negotiate, agree to, pay, or receive such royalty payments.

(2)

Chapter 8 proceeding.—

Parties not subject to such a negotiation may have the terms and rates and the division of fees described in paragraph (1) determined in a proceeding in accordance with the provisions of chapter 8.

(c)

License Agreements Superior to Determinations by Copyright Royalty Judges.—

License agreements between one or more copyright owners and one or more operators of coin-operated phonorecord players, which are negotiated in accordance with subsection (b), shall be given effect in lieu of any otherwise applicable determination by the Copyright Royalty Judges.

(d)

Definitions.—

As used in this section, the following terms mean the following:

(1)

A “coin-operated phonorecord player” is a machine or device that—

(A)

is employed solely for the performance of nondramatic musical works by means of phonorecords upon being activated by the 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;

(C)

is accompanied by a list which is comprised of the titles of all the musical works available for performance on it, and 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;

(B)

has the power to make a coin-operated phonorecord player available for placement in an establishment for purposes of public performance; or

(C)

has the power to exercise primary control over the selection of the musical works made available for public performance on a coin-operated phonorecord player.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

  1. Berne Convention Implementation Act of 1988

    Pub. L. 100–568 § 4(a)(4) · 102 Stat. 2853

    Enacted · 17 U.S.C. § 116

    Added Pub. L. 100–568, § 4(a)(4), Oct. 31, 1988, 102 Stat. 2855, § 116A

    Source evidence

    Code source credit
    Added Pub. L. 100–568, § 4(a)(4), Oct. 31, 1988, 102 Stat. 2855, § 116A

    Enacted provision · exact public law section
    (4) by inserting after section 116 the following new section: “§ 116A. Negotiated licenses for public performances by means of coin-operated phonorecord players “(a) Applicability of Section.— This section applies to any nondramatic musical work embodied in a phonorecord. “(b) Limitation on Exclusive Right if Licenses Not Negotiated.— “(1) Applicability.— In the case of a work to which this section applies, the exclusive right under clause (4) of section 106 to perform the work publicly by means of a coin-operated phonorecord player is limited by section 116 to the extent provided in this section. “(2) Determination by copyright royalty tribunal.— The Copyright Royalty Tribunal, at the end of the 1-year period beginning on the effective date of the Berne Convention Implementation Act of 1988, and periodically thereafter to the extent necessary to carry out subsection (f), shall determine whether or not negotiated licenses authorized by subsection (c) are in effect so as to provide permission to use a quantity of musical works not substantially smaller than the quantity of such works performed on coin-operated phonorecord players during the 1-year period ending on the effective date of that Act. If the Copyright Royalty Tribunal determines that such Federal Register, publication. negotiated licenses are not so in effect, the Tribunal shall, upon making the determination, publish the determination in the Federal Register. Upon such publication, section 116 shall apply with respect to musical works that are not the subject of such negotiated licenses. “(c) Negotiated Licenses.— “(1) Authority for negotiations.— Any owners of copyright in works to which this section applies and any operators of coin-operated phonorecord players may negotiate and agree upon the terms and rates of royalty payments for the performance of such works and the proportionate division of fees paid among copyright owners, and may designate common agents to negotiate, agree to, pay, or receive such royalty payments. “(2) Arbitration.— Parties to such a negotiation, within such time as may be specified by the Copyright Royalty Tribunal by regulation, may determine the result of the negotiation by arbitration. Such arbitration shall be governed by the provisions of title 9, to the extent such title is not inconsistent with this section. The parties shall give notice to the Copyright Royalty Tribunal of any determination reached by arbitration and any such determination shall, as between the parties to the arbitration, be dispositive of the issues to which it relates. “(d) License Agreements Superior to Copyright Royalty Tribunal Determinations.— License agreements between one or more copyright owners and one or more operators of coin-operated phonorecord players, which are negotiated in accordance with subsection (c), shall be given effect in lieu of any otherwise applicable determination by the Copyright Royalty Tribunal. “(e) Negotiation Schedule.— Not later than 60 days after the effective date of the Berne Convention Implementation Act of 1988, if the Chairman of the Copyright Royalty Tribunal has not received notice, from copyright owners and operators of coin-operated phonorecord players referred to in subsection (c)(1), of the date and location of the first meeting between such copyright owners and such operators to commence negotiations authorized by subsection (c), the Chairman shall announce the date and location of such meeting. Such meeting may not be held more than 90 days after the effective date of such Act. “(f) Copyright Royalty Tribunal To Suspend Various Activities.— The Copyright Royalty Tribunal shall not conduct any rate-making activity with respect to coin-operated phonorecord players unless, at any time more than one year after the effective date of the Berne Convention Implementation Act of 1988, the negotiated licenses adopted by the parties under this section do not provide permission to use a quantity of musical works not substantially smaller than the quantity of such works performed on coin-operated phonorecord players during the one-year period ending on the effective date of such Act. “(g) Transition Provisions; Retention of Copyright Royalty Tribunal Jurisdiction.— Until such time as licensing provisions are determined by the parties under this section, the terms of the compulsory license under section 116, with respect to the public performance of nondramatic musical works by means of coin-operated phonorecord players, which is in effect on the day before the effective date of the Berne Convention Implementation Act of 1988, shall remain in force. If a negotiated license authorized by this section comes into force so as to supersede previous determinations of the Copyright Royalty Tribunal, as provided in subsection (d), but thereafter is terminated or expires and is not replaced by another licensing agreement, then section 116 shall be effective with respect to musical works that were the subject of such terminated or expired licenses.”.

  2. Copyright Royalty Tribunal Reform Act of 1993

    Pub. L. 103–198 § 3(b)(1)(A) · 107 Stat. 2304

    Changed · 17 U.S.C. § 116

    Pub. L. 103–198, § 3(b)(1)(A), renumbered section 116A of this title as this section

    Source evidence

    Code amendment note
    Pub. L. 103–198, § 3(b)(1)(A), renumbered section 116A of this title as this section.

    Enacted provision · exact public law section
    (A) by redesignating such section as section 116;

  3. Copyright Royalty Tribunal Reform Act of 1993

    Pub. L. 103–198 § 3(b)(1)(B) · 107 Stat. 2304

    1. Redesignated · 17 U.S.C. § 116(b)

      Pub. L. 103–198, § 3(b)(1)(B), (C), redesignated subsec. (c) as (b)

    2. Substituted · 17 U.S.C. § 116(b)

      Pub. L. 103–198, § 3(b)(1)(B), (C), substituted “Librarian of Congress” for “Copyright Royalty Tribunal” in two places in par. (2)

    3. Struck · 17 U.S.C. § 116(b)

      Pub. L. 103–198, § 3(b)(1)(B), (C), struck out former subsec. (b) which related to limitation on exclusive right if licenses not negotiated

    Source evidence

    Code amendment note
    Subsec. (b). Pub. L. 103–198, § 3(b)(1)(B), (C), redesignated subsec. (c) as (b), substituted “Librarian of Congress” for “Copyright Royalty Tribunal” in two places in par. (2), and struck out former subsec. (b) which related to limitation on exclusive right if licenses not negotiated.

    Enacted provision · exact public law section
    (B) by striking subsection (b) and redesignating subsections (c) and (d) as subsections (b) and (c), respectively;

  4. Copyright Royalty Tribunal Reform Act of 1993

    Pub. L. 103–198 § 3(b)(1)(B) · 107 Stat. 2304

    Redesignated · 17 U.S.C. § 116(c)

    Pub. L. 103–198, § 3(b)(1)(B), (D), redesignated subsec. (d) as (c), in heading substituted “Arbitration Royalty Panel” for “Royalty Tribunal”, and in text substituted “subsection (b)” for “subsection (c)” and “a copyright arbitration royalty panel” for “the Copyright Royalty Tribunal”

    Source evidence

    Code amendment note
    Subsec. (c). Pub. L. 103–198, § 3(b)(1)(B), (D), redesignated subsec. (d) as (c), in heading substituted “Arbitration Royalty Panel” for “Royalty Tribunal”, and in text substituted “subsection (b)” for “subsection (c)” and “a copyright arbitration royalty panel” for “the Copyright Royalty Tribunal”.

    Enacted provision · exact public law section
    (B) by striking subsection (b) and redesignating subsections (c) and (d) as subsections (b) and (c), respectively;

  5. Copyright Royalty Tribunal Reform Act of 1993

    Pub. L. 103–198 § 3(b)(1)(B) · 107 Stat. 2304

    1. Redesignated · 17 U.S.C. § 116(d)(g)

      Pub. L. 103–198, § 3(b)(1)(B), (E), redesignated subsec. (d) as (c)

    2. Struck · 17 U.S.C. § 116(d)(g)

      Pub. L. 103–198, § 3(b)(1)(B), (E), struck out subsecs. (e) to (g) which provided, in subsec. (e), for a schedule for negotiation of licenses, in subsec. (f), for a suspension of various ratemaking activities by the Copyright Royalty Tribunal, and in subsec. (g), for transition provisions and retention of Copyright Royalty Tribunal jurisdiction

    Source evidence

    Code amendment note
    Subsecs. (d) to (g). Pub. L. 103–198, § 3(b)(1)(B), (E), redesignated subsec. (d) as (c) and struck out subsecs. (e) to (g) which provided, in subsec. (e), for a schedule for negotiation of licenses, in subsec. (f), for a suspension of various ratemaking activities by the Copyright Royalty Tribunal, and in subsec. (g), for transition provisions and retention of Copyright Royalty Tribunal jurisdiction.

    Enacted provision · exact public law section
    (B) by striking subsection (b) and redesignating subsections (c) and (d) as subsections (b) and (c), respectively;

  6. Pub. L. 105–80 § 5(1) · 111 Stat. 1529

    Amended · 17 U.S.C. § 116(b)(2)

    Pub. L. 105–80, § 5(1), amended par. (2) generally. Prior to amendment, par. (2) read as follows:

    Source evidence

    Code amendment note
    Subsec. (b)(2). Pub. L. 105–80, § 5(1), amended par. (2) generally. Prior to amendment, par. (2) read as follows:

    “(2) Arbitration.—Parties to such a negotiation, within such time as may be specified by the Librarian of Congress by regulation, may determine the result of the negotiation by arbitration. Such arbitration shall be governed by the provisions of title 9, to the extent such title is not inconsistent with this section. The parties shall give notice to the Librarian of Congress of any determination reached by arbitration and any such determination shall, as between the parties to the arbitration, be dispositive of the issues to which it relates.”

    Enacted provision · exact public law section
    (1) by amending subsection (b)(2) to read as follows: “(2) Arbitration.— Parties not subject to such a negotiation may determine, by arbitration in accordance with the provisions of chapter 8, the terms and rates and the division of fees described in paragraph (1).”; and

  7. Pub. L. 105–80 § 5(2) · 111 Stat. 1529

    Added · 17 U.S.C. § 116(d)

    Pub. L. 105–80, § 5(2), added subsec. (d)

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 105–80, § 5(2), added subsec. (d).

    Enacted provision · exact public law section
    (2) by adding at the end the following new subsection: “(d) Definitions.— As used in this section, the following terms mean the following: “(1) A ‘coin-operated phonorecord player’ is a machine or device that— “(A) is employed solely for the performance of nondramatic musical works by means of phonorecords upon being activated by the 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; “(C) is accompanied by a list which is comprised of the titles of all the musical works available for performance on it, and 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; “(B) has the power to make a coin-operated phonorecord player available for placement in an establishment for purposes of public performance; or “(C) has the power to exercise primary control over the selection of the musical works made available for public performance on a coin-operated phonorecord player.”.

  8. Copyright Royalty and Distribution Reform Act of 2004

    Pub. L. 108–419 § 5(e)(1) · 118 Stat. 2341

    Amended · 17 U.S.C. § 116(b)(2)

    Pub. L. 108–419, § 5(e)(1), amended heading and text of par. (2) generally. Prior to amendment, text read as follows: “Parties not subject to such a negotiation may determine, by arbitration in accordance with the provisions of chapter 8, the terms and rates and the division of fees described in paragraph (1).”

    Source evidence

    Code amendment note
    Subsec. (b)(2). Pub. L. 108–419, § 5(e)(1), amended heading and text of par. (2) generally. Prior to amendment, text read as follows: “Parties not subject to such a negotiation may determine, by arbitration in accordance with the provisions of chapter 8, the terms and rates and the division of fees described in paragraph (1).”

    Enacted provision · exact public law section
    (1) in subsection (b), by amending paragraph (2) to read as follows: “(2) Chapter 8 proceeding.— Parties not subject to such a negotiation may have the terms and rates and the division of fees described in paragraph (1) determined in a proceeding in accordance with the provisions of chapter 8.” ; and

    Effective date note
    Amendment by Pub. L. 108–419 effective 6 months after Nov. 30, 2004, subject to transition provisions, see section 6 of Pub. L. 108–419, set out as an Effective Date; Transition Provisions note under section 801 of this title.

  9. Copyright Royalty and Distribution Reform Act of 2004

    Pub. L. 108–419 § 5(e)(2) · 118 Stat. 2341

    1. Substituted · 17 U.S.C. § 116(c)

      Pub. L. 108–419, § 5(e)(2), substituted “Determinations by Copyright Royalty Judges” for “Copyright Arbitration Royalty Panel Determinations” in text

    2. Substituted · 17 U.S.C. § 116(c)

      Pub. L. 108–419, § 5(e)(2), substituted “the Copyright Royalty Judges” for “a copyright arbitration royalty panel” in text

    Source evidence

    Code amendment note
    Subsec. (c). Pub. L. 108–419, § 5(e)(2), substituted “Determinations by Copyright Royalty Judges” for “Copyright Arbitration Royalty Panel Determinations” in heading and “the Copyright Royalty Judges” for “a copyright arbitration royalty panel” in text.

    Enacted provision · exact public law section
    (2) in subsection (c)— (A) in the subsection heading, by striking “Copyright Arbitration Royalty Panel Determinations” and inserting “Determinations by Copyright Royalty Judges”; and (B) by striking “a copyright arbitration royalty panel” and inserting “the Copyright Royalty Judges”.

    Effective date note
    Amendment by Pub. L. 108–419 effective 6 months after Nov. 30, 2004, subject to transition provisions, see section 6 of Pub. L. 108–419, set out as an Effective Date; Transition Provisions note under section 801 of this title.

13 of 13 references resolved to an enrolled provision

Editorial Notes

Prior Provisions

A prior section 116, Pub. L. 94–553, title I, § 101, , 90 Stat. 2562; Pub. L. 100–568, § 4(b)(1), , 102 Stat. 2857, related to scope of exclusive rights in nondramatic musical works and compulsory licenses for public performances by means of coin-operated phonorecord players, prior to repeal by Pub. L. 103–198, § 3(a), , 107 Stat. 2309.

Amendments1993–2004 · 3 rounds

2004

Subsec. (b)(2). Pub. L. 108–419, § 5(e)(1), amended heading and text of par. (2) generally. Prior to amendment, text read as follows: “Parties not subject to such a negotiation may determine, by arbitration in accordance with the provisions of chapter 8, the terms and rates and the division of fees described in paragraph (1).”

Subsec. (c). Pub. L. 108–419, § 5(e)(2), substituted “Determinations by Copyright Royalty Judges” for “Copyright Arbitration Royalty Panel Determinations” in heading and “the Copyright Royalty Judges” for “a copyright arbitration royalty panel” in text.

1997

Subsec. (b)(2). Pub. L. 105–80, § 5(1), amended par. (2) generally. Prior to amendment, par. (2) read as follows:

“(2) Arbitration.—Parties to such a negotiation, within such time as may be specified by the Librarian of Congress by regulation, may determine the result of the negotiation by arbitration. Such arbitration shall be governed by the provisions of title 9, to the extent such title is not inconsistent with this section. The parties shall give notice to the Librarian of Congress of any determination reached by arbitration and any such determination shall, as between the parties to the arbitration, be dispositive of the issues to which it relates.”

Subsec. (d). Pub. L. 105–80, § 5(2), added subsec. (d).

1993

Pub. L. 103–198, § 3(b)(1)(A), renumbered section 116A of this title as this section.

Subsec. (b). Pub. L. 103–198, § 3(b)(1)(B), (C), redesignated subsec. (c) as (b), substituted “Librarian of Congress” for “Copyright Royalty Tribunal” in two places in par. (2), and struck out former subsec. (b) which related to limitation on exclusive right if licenses not negotiated.

Subsec. (c). Pub. L. 103–198, § 3(b)(1)(B), (D), redesignated subsec. (d) as (c), in heading substituted “Arbitration Royalty Panel” for “Royalty Tribunal”, and in text substituted “subsection (b)” for “subsection (c)” and “a copyright arbitration royalty panel” for “the Copyright Royalty Tribunal”.

Subsecs. (d) to (g). Pub. L. 103–198, § 3(b)(1)(B), (E), redesignated subsec. (d) as (c) and struck out subsecs. (e) to (g) which provided, in subsec. (e), for a schedule for negotiation of licenses, in subsec. (f), for a suspension of various ratemaking activities by the Copyright Royalty Tribunal, and in subsec. (g), for transition provisions and retention of Copyright Royalty Tribunal jurisdiction.

Statutory Notes and Related Subsidiaries

Effective Date of 2004 Amendment

Amendment by Pub. L. 108–419 effective 6 months after , subject to transition provisions, see section 6 of Pub. L. 108–419, set out as an Effective Date; Transition Provisions note under section 801 of this title.

Effective Date

Section effective , with any cause of action arising under this title before such date being governed by provisions as in effect when cause of action arose, see section 13 of Pub. L. 100–568, set out as an Effective Date of 1988 Amendment note under section 101 of this title.

Credits

1988–2004 · 4 acts
  1. 1988Added Pub. L. 100–568, § 4(a)(4), , 102 Stat. 2855, § 116A
  2. 1993renumbered § 116 and amended Pub. L. 103–198, § 3(b)(1), , 107 Stat. 2309
  3. 1997Pub. L. 105–80, § 5, , 111 Stat. 1531
  4. 2004Pub. L. 108–419, § 5(e), , 118 Stat. 2365.
Show as published

(Added Pub. L. 100–568, § 4(a)(4), , 102 Stat. 2855, § 116A; renumbered § 116 and amended Pub. L. 103–198, § 3(b)(1), , 107 Stat. 2309; Pub. L. 105–80, § 5, , 111 Stat. 1531; Pub. L. 108–419, § 5(e), , 118 Stat. 2365.)

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