<?xml version="1.0"?>
<?xml-stylesheet type="text/xsl" href="billres.xsl"?>
<!DOCTYPE bill PUBLIC "-//US Congress//DTDs/bill.dtd//EN" "bill.dtd">
<bill bill-stage="Introduced-in-Senate" public-private="public">
	<form>
		<distribution-code display="yes">II</distribution-code>
		<congress>110th CONGRESS</congress>
		<session>1st Session</session>
		<legis-num>S. 256</legis-num>
		<current-chamber>IN THE SENATE OF THE UNITED STATES</current-chamber>
		<action>
			<action-date date="20070111">January 11, 2007</action-date>
			<action-desc><sponsor name-id="S221">Mrs. Feinstein</sponsor> (for
			 herself, <cosponsor name-id="S293">Mr. Graham</cosponsor>,
			 <cosponsor name-id="S010">Mr. Biden</cosponsor>, and <cosponsor name-id="S289">Mr. Alexander</cosponsor>) introduced the following bill; which
			 was read twice and referred to the <committee-name committee-id="SSJU00">Committee on the Judiciary</committee-name></action-desc>
		</action>
		<legis-type>A BILL</legis-type>
		<official-title display="yes">To harmonize rate setting standards for
		  copyright licenses under sections 112 and 114 of title 17, United States Code,
		  and for other purposes.</official-title>
	</form>
	<legis-body>
		<section commented="no" display-inline="no-display-inline" id="idA317F0A3556D4B34A7429F2FBD81BEA7" section-type="section-one"><enum>1.</enum><header>Short title</header><text display-inline="no-display-inline">This Act may be cited as the
			 <quote><short-title>Platform Equality and Remedies for
			 Rights Holders in Music Act of 2007</short-title></quote> or the
			 <quote><short-title>Perform Act of
			 2007</short-title></quote>.</text>
		</section><section commented="no" display-inline="no-display-inline" id="id1BF8B3DE1E6740B2976BDB2484265DF1" section-type="subsequent-section"><enum>2.</enum><header>Rate setting
			 standards</header>
			<subsection commented="no" display-inline="no-display-inline" id="idEA063039BB4049E987EE99C70AD82206"><enum>(a)</enum><header>Section 112
			 licenses</header><text display-inline="yes-display-inline">Section 112(e)(4) of
			 title 17, United States Code, is amended in the third sentence by striking
			 <quote>fees that would have been negotiated in the marketplace between a
			 willing buyer and a willing seller</quote> and inserting <quote>the fair market
			 value of the rights licensed under this subsection</quote>.</text>
			</subsection><subsection commented="no" display-inline="no-display-inline" id="id4F279BD954794352A82880C51E207089"><enum>(b)</enum><header>Section 114
			 licenses</header><text display-inline="yes-display-inline">Section 114(f) of
			 title 17, United States Code, is amended—</text>
				<paragraph commented="no" display-inline="no-display-inline" id="id07D54EFEA1F94B60A0BB3A67B7236AA1"><enum>(1)</enum><text display-inline="yes-display-inline">by striking paragraph (1);</text>
				</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id8C8A4CF872DB4CF8B1C1FC8B25DDCA55"><enum>(2)</enum><text display-inline="yes-display-inline">by redesignating paragraphs (2), (3), (4),
			 and (5) as paragraphs (1), (2), (3), and (4), respectively; and</text>
				</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id6BD6DA94AD814BE3A3A6E7448BEC7A54"><enum>(3)</enum><text display-inline="yes-display-inline">in paragraph (1) (as redesignated under
			 this subsection)—</text>
					<subparagraph commented="no" display-inline="no-display-inline" id="id387E0AB357954D76BFAD31B328A895CF"><enum>(A)</enum><text display-inline="yes-display-inline">in subparagraph (A), by striking all after
			 <quote>Proceedings</quote> and inserting <quote>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.</quote>;</text>
					</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id8CAF30BF73C3494D98E19EA757E07159"><enum>(B)</enum><text display-inline="yes-display-inline">in subparagraph (B)—</text>
						<clause commented="no" display-inline="no-display-inline" id="id765F8C2DAF5242F19CFB033CAE604022"><enum>(i)</enum><text display-inline="yes-display-inline">in the first sentence, by striking
			 <quote>affected by this paragraph</quote> and inserting <quote>under this
			 section</quote>;</text>
						</clause><clause commented="no" display-inline="no-display-inline" id="id80FA0269639A4F789E3EFD57ED6AA27B"><enum>(ii)</enum><text display-inline="yes-display-inline">in the second sentence, by striking
			 <quote>eligible nonsubscription transmission</quote>; and</text>
						</clause><clause commented="no" display-inline="no-display-inline" id="idDA659498342B49CF81150243774F5DD6"><enum>(iii)</enum><text display-inline="yes-display-inline">in the third sentence—</text>
							<subclause commented="no" display-inline="no-display-inline" id="idE61081581F034948A2E95FE3AEECF22A"><enum>(I)</enum><text display-inline="yes-display-inline">by striking <quote>eligible nonsubscription
			 services and new subscription</quote>; and</text>
							</subclause><subclause commented="no" display-inline="no-display-inline" id="idBDF64C12CC9C4E87803AD80CC1D8F1C1"><enum>(II)</enum><text display-inline="yes-display-inline">by striking <quote>rates and terms that
			 would have been negotiated in the marketplace between a willing buyer and a
			 willing seller</quote> and inserting <quote>the fair market value of the rights
			 licensed under this section</quote>;</text>
							</subclause></clause><clause commented="no" display-inline="no-display-inline" id="id34404112B7E947D19A859E210B6F8ACE"><enum>(iv)</enum><text display-inline="yes-display-inline">in the fourth sentence, by striking
			 <quote>base its</quote> and inserting <quote>base their</quote>;</text>
						</clause><clause commented="no" display-inline="no-display-inline" id="idA604997839F3408BA744298C5D5C490D"><enum>(v)</enum><text display-inline="yes-display-inline">in clause (i), by striking
			 <quote>and</quote> after the semicolon;</text>
						</clause><clause commented="no" display-inline="no-display-inline" id="id5015C026D39447FE8416E67C231A1F69"><enum>(vi)</enum><text display-inline="yes-display-inline">in clause (ii), by striking the period and
			 inserting <quote>; and</quote>;</text>
						</clause><clause commented="no" display-inline="no-display-inline" id="id79D4BB0B985D46378D4634D8C638E61B"><enum>(vii)</enum><text display-inline="yes-display-inline">by inserting after clause (ii) the
			 following:</text>
							<quoted-block display-inline="no-display-inline" id="id8192B51F93DE4DB98EE6487972A9616C" style="OLC">
								<clause commented="no" display-inline="no-display-inline" id="ID7c4834a8023c40428b99c5c84e487e47"><enum>(iii)</enum><text display-inline="yes-display-inline">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.</text>
								</clause><after-quoted-block>;
				and</after-quoted-block></quoted-block>
						</clause><clause commented="no" display-inline="no-display-inline" id="idC6B2C70F75C84F5EBE49129A81107E6E"><enum>(viii)</enum><text display-inline="yes-display-inline">in the matter following clause (ii), by
			 striking <quote>described in subparagraph (A)</quote>; and</text>
						</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id8B72FDA5F3CB4838854467F8BB7D5BE8"><enum>(C)</enum><text display-inline="yes-display-inline">by striking subparagraph (C) and inserting
			 the following:</text>
						<quoted-block display-inline="no-display-inline" id="idFA7BD1143CD046A5AA5E56DB8319F0DE" style="OLC">
							<subparagraph commented="no" display-inline="no-display-inline" id="idE842F252EC3A40A5A8646974D0B4CED2"><enum>(C)</enum><text display-inline="yes-display-inline">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.</text>
							</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
					</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idC3A174E6908D4E579BD03ACB814AEC6C"><enum>(c)</enum><header>Content
			 protection</header><text display-inline="yes-display-inline">Section 114(d)(2)
			 of title 17, United States Code, is amended—</text>
				<paragraph commented="no" display-inline="no-display-inline" id="id7D81D2CFE91E454795CFE4BA3F89C30B"><enum>(1)</enum><text display-inline="yes-display-inline">in subparagraph (A)—</text>
					<subparagraph commented="no" display-inline="no-display-inline" id="idAB9B342EE11E4C2BA77142E7BFE07211"><enum>(A)</enum><text display-inline="yes-display-inline">in clause (ii), by striking
			 <quote>and</quote> after the semicolon;</text>
					</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idCA842A90130F47E6A1CAC9437275AAE5"><enum>(B)</enum><text display-inline="yes-display-inline">in clause (iii), by adding
			 <quote>and</quote> after the semicolon; and</text>
					</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idA7AD4ACCE34543F78CC614091C7FC6AD"><enum>(C)</enum><text display-inline="yes-display-inline">by adding after clause (iii) the
			 following:</text>
						<quoted-block display-inline="no-display-inline" id="id8A6275E4ED2B4B5286838FE11F3869C6" style="OLC">
							<clause commented="no" display-inline="no-display-inline" id="id8B724B48C33B4C5793A430B9E7240A85"><enum>(iv)</enum><text display-inline="yes-display-inline">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;</text>
							</clause><after-quoted-block>;</after-quoted-block></quoted-block>
					</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id19FCB1076CD14A6380B05879425470EC"><enum>(2)</enum><text display-inline="yes-display-inline">in subparagraph (C)—</text>
					<subparagraph commented="no" display-inline="no-display-inline" id="id0E44959FCA3F4930A80AA2A7916F416A"><enum>(A)</enum><text display-inline="yes-display-inline">by striking clause (vi); and</text>
					</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idECFC6D5F792240B686FE6CC505A9C6C2"><enum>(B)</enum><text display-inline="yes-display-inline">by redesignating clauses (vii) through (ix)
			 as clauses (vi) through (viii), respectively; and</text>
					</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idC40C7F97C7604F9792DA41147AF3C42D"><enum>(3)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
					<quoted-block display-inline="no-display-inline" id="id94A88B50DC2645B6911A7BD396574405" style="OLC">
						<quoted-block-continuation-text quoted-block-continuation-text-level="subsection">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.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
				</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id9F9738A642E54B70BB00304270AF7472"><enum>(d)</enum><header>Definition</header><text display-inline="yes-display-inline">Section 114(j) of title 17, United States
			 Code, is amended—</text>
				<paragraph commented="no" display-inline="no-display-inline" id="id859A66B8C4BD4DBA968F6A2D137CFE6A"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating paragraphs (10) through
			 (15) as paragraphs (11) through (16), respectively; and</text>
				</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idF3299E62012341258FF4870DDF646AC0"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting after paragraph (9) the
			 following:</text>
					<quoted-block display-inline="no-display-inline" id="idDF41C8F2CBD74BB7BD1CD08520FB25E3" style="OLC">
						<paragraph commented="no" display-inline="no-display-inline" id="ID3c6f065009c946aa890c8df7c79d25d3"><enum>(10)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="idBBAB058B94B1475B9C567F07B943471D"><enum>(A)</enum><text display-inline="yes-display-inline">A <term>reasonable recording</term> 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—</text>
								<clause commented="no" display-inline="no-display-inline" id="IDaabecdb1d4cb43b28aaee0582e81a09e" indent="up1"><enum>(i)</enum><text display-inline="yes-display-inline">permit automated recording or playback
				based on specific programs, time periods, or channels as selected by or for the
				user;</text>
								</clause><clause commented="no" display-inline="no-display-inline" id="ID6cbdee755e294b818f819cad7b7c9725" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">do not permit automated recording or
				playback based on specific sound recordings, albums, or artists;</text>
								</clause><clause commented="no" display-inline="no-display-inline" id="IDaf6c2493f6054653911d0f97010fd460" indent="up1"><enum>(iii)</enum><text display-inline="yes-display-inline">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</text>
								</clause><clause commented="no" display-inline="no-display-inline" id="IDcfb14ec927e24023b07f7e285a6dcee8" indent="up1"><enum>(iv)</enum><text display-inline="yes-display-inline">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.</text>
								</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID52a9be70ebdf474c90468ac437e98dd7" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">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.</text>
							</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
				</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id5828C11809274C579B10D96F281FFE11"><enum>(e)</enum><header>Technical and
			 conforming amendments</header>
				<paragraph commented="no" display-inline="no-display-inline" id="id3A757BB80A9B496AA14C4B43A1F92537"><enum>(1)</enum><header>Section
			 114</header><text display-inline="yes-display-inline">Section 114(f) of title
			 17, United States Code (as amended by subsection (b) of this section), is
			 further amended—</text>
					<subparagraph commented="no" display-inline="no-display-inline" id="id7D077BCE118A4565AF87B37607FBDE22"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (1)(B), in the first sentence,
			 by striking <quote>paragraph (3)</quote> and inserting <quote>paragraph
			 (2)</quote>; and</text>
					</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idDB741CB026784B08A0916109441F91C5"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (4)(C), by striking
			 <quote>under paragraph (4)</quote> and inserting <quote>under paragraph
			 (3)</quote>.</text>
					</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idC3149A16ADD1463D821F65C8A04A3C7B"><enum>(2)</enum><header>Section
			 804</header><text display-inline="yes-display-inline">Section 804(b)(3)(C) of
			 title 17, United States Code, is amended—</text>
					<subparagraph commented="no" display-inline="no-display-inline" id="id73340DF9C40D443B8A4CEB5BC66D3506"><enum>(A)</enum><text display-inline="yes-display-inline">in clause (i), by striking <quote>and
			 114(f)(2)(C)</quote>; and</text>
					</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idE1C016E23E2747FD8242F07947B2AA6E"><enum>(B)</enum><text display-inline="yes-display-inline">in clause (iv), by striking <quote>or
			 114(f)(2)(C), as the case may be</quote>.</text>
					</subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="idF5A58F38EF4E4E6DB4F72E67C20CE3D4" section-type="subsequent-section"><enum>3.</enum><header>Register of copyrights
			 meeting and report</header>
			<subsection commented="no" display-inline="no-display-inline" id="id74CF2D60E1BD415888EABCC4D7493D49"><enum>(a)</enum><header>Meeting</header><text display-inline="yes-display-inline">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.</text>
			</subsection><subsection commented="no" display-inline="no-display-inline" id="idE1F0E8EC66254FC48FE6A7FC41654E9F"><enum>(b)</enum><header>Report</header><text display-inline="yes-display-inline">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.</text>
			</subsection></section></legis-body>
</bill>
