II 110th CONGRESS 1st Session S. 2500 IN THE SENATE OF THE UNITED STATES 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 A BILL To provide fair compensation to artists for use of their sound recordings.

1.

Short title

This Act may be cited as the Performance Rights Act.

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,.

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; .

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..

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.