§ 382.10 - Royalty fees for the digital performance of sound recordings and the making of ephemeral recordings by preexisting subscription services.

§ 382.10 General.

(a) Scope. This subpart establishes rates and terms of royalty payments

Royalty fees for the

public

digital performance of sound recordings

in certain digital transmissions by Licensees in accordance with the provisions of 17 U.S.C. 114,

and the making of

Ephemeral Recordings by Licensees in accordance with the provisions of 17 U.S.C. 112(e), during the period from January 1, 2013, through December 31, 2017.

(b) Legal compliance. Licensees relying upon the statutory licenses set forth in 17 U.S.C. 112(e) and 114 shall comply with the requirements of those sections, the rates and terms of this subpart, and any other applicable regulations.

(c) Relationship to voluntary agreements. Notwithstanding the royalty rates and terms established in this subpart, the rates and terms of any voluntary license agreements entered into by Copyright Owners and Licensees shall apply in lieu of the rates and terms of this subpart to transmission within the scope of such agreements.

[73 FR 4102, Jan. 24, 2008, as amended at 78 FR 23098, Apr. 17, 2013]

ephemeral recordings by preexisting subscription services.

(a) Royalty fees. Commencing January 1, 2018, and continuing through December 31, 2027, Licensees must pay royalty fees for all Eligible Transmissions of sound recordings at the rate of 7.5 percent of Gross Revenues.

(b) Ephemeral recordings royalty fee.

(1) The fee for all Ephemeral Recordings is part of the total fee payable under this section and constitutes 5% of it. All Ephemeral Recordings that a Licensee makes that are necessary and commercially reasonable for making noninteractive Digital Audio Transmission as a PSS are included in the 5%.

(2) The minimum fee is $5,000 per year.