[Code of Federal Regulations]
[Title 37, Volume 1]
[Revised as of July 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 37CFR261.3]

[Page 655-656]
 
              TITLE 37--PATENTS, TRADEMARKS, AND COPYRIGHTS
 
                                CONGRESS
 
PART 261_RATES AND TERMS FOR ELIGIBLE NONSUBSCRIPTION TRANSMISSIONS AND THE MAKING OF EPHEMERAL REPRODUCTIONS--Table of Contents
 
Sec. 261.3  Royalty fees for public performances of sound recordings and for ephemeral recordings.

    (a) For the period October 28, 1998, through December 31, 2002, 
royalty rates and fees for eligible digital transmissions of sound 
recordings made pursuant to 17 U.S.C. 114(d)(2), and the making of 
ephemeral recordings pursuant to 17 U.S.C. 112(e) shall be as follows:
    (1) Webcaster and Commercial Broadcaster Performance Royalty. For 
all Internet transmissions, including simultaneous Internet 
retransmissions of over-the-air AM or FM radio broadcasts, a Webcaster 
and a Commercial Broadcaster shall pay a section 114(f) performance 
royalty of 0.07[cent] per performance.
    (2) Non-CPB, Non-Commercial Broadcaster Performance Royalty.
    (i) For simultaneous Internet retransmissions of over-the-air AM or 
FM broadcasts by the same radio station, a non-CPB, Non-Commercial 
Broadcaster shall pay a section 114(f) performance royalty of 0.02[cent] 
per performance.
    (ii) For other Internet transmissions, including up to two side 
channels of programming consistent with the mission of the station, a 
Non-CPB, Non-Commercial Broadcaster shall pay a section 114(f) 
performance royalty of 0.02[cent] per performance.
    (iii) For Internet transmissions on other side channels of 
programming, a Non-CPB, Non-Commercial Broadcaster shall pay a section 
114(f) performance royalty of 0.07[cent] per performance.
    (b) Estimate of Performance. Until December 31, 2002, a Webcaster, 
Commercial Broadcaster, or Non-CPB, Non-Commercial Broadcaster may 
estimate its total number of performances if the actual number is not 
available. Such estimation shall be based on multiplying the total 
number of Aggregate Tuning Hours by 15 performances per hour (1 
performance per hour in the case of transmissions or retransmissions of 
radio station programming reasonably classified as news, business, talk 
or sports, and 12 performances per hour in the case of transmissions or 
retransmissions of all other radio station programming).
    (c) Webcaster and Broadcaster Ephemeral Recordings Royalty. For the 
making of any number of ephemeral recordings to facilitate the Internet 
transmission of a sound recording, each Webcaster, Commercial 
Broadcaster, and Non-CPB, Non-Commercial Broadcaster shall pay a section 
112(e) royalty equal to 8.8% of their total performance royalty.
    (d) Business Establishment Ephemeral Recordings Royalty. For the 
making of any number of ephemeral recordings in the operation of a 
service pursuant to the Business Establishment exemption contained in 17 
U.S.C. 114(d)(1)(C)(iv), a Business Establishment Service shall pay a 
section 112(e) ephemeral recording royalty equal to ten percent (10%) of 
the Licensee's annual gross proceeds derived from the use in such 
service of the musical programs which are attributable to copyrighted 
recordings. The attribution of gross proceeds to copyrighted recordings 
may be made on the basis of:
    (1) For classical programs, the proportion that the playing time of 
copyrighted classical recordings bears to the total playing time of all 
classical recordings in the program,
    (2) For all other programs, the proportion that the number of 
copyrighted

[[Page 656]]

recordings bears to the total number of all recordings in the program.
    (e) Minimum fee. (1) Each Webcaster, Commercial Broadcaster, and 
Non-CPB, Non-Commercial Broadcaster licensed to make eligible digital 
transmissions and/or ephemeral recordings pursuant to licenses under 17 
U.S.C. 114(f) and/or 17 U.S.C. 112(e) shall pay a minimum fee of $500 
for each calendar year, or part thereof, in which it makes such 
transmissions or recordings.
    (2) Each Business Establishment Service licensed to make ephemeral 
recordings pursuant to a license under 17 U.S.C. 112(e) shall pay a 
minimum fee of $10,000 for each calendar year, or part thereof, in which 
it makes such recordings.