§ 383.3 - Royalty fees for public performances of sound recordings and the making of ephemeral recordings.

§ 383.3 Royalty fees for public performances of sound recordings and the making of ephemeral recordings.

Cross Reference

Link to an amendment published at 85 FR 9664, Feb. 20, 2020.

(a) Royalty rates. Royalty rates for the public performance of sound recordings by eligible digital transmissions made over a Service pursuant to 17 U.S.C. 114, and for ephemeral recordings of sound recordings made pursuant to 17 U.S.C. 112(e) to facilitate such transmissions during the statutory licenses License Period, are as follows. Each Licensee will pay, with respect to content covered by the statutory licenses License that is provided via the Service of each such Licensee:

(1) For Stand-Alone Contracts, the following monthly payment per Subscriber to the Service of such Licensee:

(i) 2016 2021: $0.0179; 0208

(ii) 2017 2022: $0.0185; 0214

(iii) 2018 2023: $0.0190; 0221

(iv) 2019 2024: $0.0196; 0227

(v) 2020 2025: $0.0202; 0234

(2) For Bundled Contracts, the following monthly payment per Subscriber to the Service of such Licensee:

(i) 2016 2021: $0.0299; 0346

(ii) 2017 2022: $0.0308; 0356

(iii) 2018 2023: $0.0317; 0367

(iv) 2019 2024: $0.0326; 0378

(v) 2020 2025: $0.0336; 0390

(b) Minimum fee. Each Licensee will pay an annual, non-refundable minimum fee of one hundred thousand dollars ($100,000), payable on January 31 of each calendar year in which the Service is provided pursuant to the section 112(e) and 114 statutory licenses. Such fee shall be recoupable and credited against royalties due in the calendar year in which it is paid.

(c) Ephemeral recordings. The royalty payable under 17 U.S.C. 112(e) for the making of phonorecords used by the Licensee solely to facilitate transmissions during the License Period for which it pays royalties as and when provided in this part shall be included within, and constitute 5% of, such royalty payments Allocation between ephemeral recordings fees and performance royalty fees. The Collective must credit 5% of all royalty payments as royalty payment for Ephemeral Recordings and credit the remaining 95% to section 114 royalties. All Ephemeral Recordings that a Licensee makes which are necessary and commercially reasonable for making noninteractive digital transmissions through a Service are included in the 5%.

[72 FR 72254, Dec. 20, 2007, as amended at 75 FR 14075, Mar. 24, 2010; 80 FR 36928, June 29, 2015; 85 FR 9664, Feb. 20, 2020]