[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: 37CFR384.3]

[Page 754-755]
 
              TITLE 37--PATENTS, TRADEMARKS, AND COPYRIGHTS
 
        CHAPTER III--COPYRIGHT ROYALTY BOARD, LIBRARY OF CONGRESS
 
PART 384_RATES AND TERMS FOR THE MAKING OF EPHEMERAL RECORDINGS BY BUSINESS ESTABLISHMENT SERVICES--Table of Contents
 
Sec. 384.3  Royalty fees for Ephemeral Recordings.

    (a) Basic royalty rate. For the making of any number of Ephemeral 
Recordings in the operation of a service pursuant to the limitation on 
exclusive rights specified by 17 U.S.C. 114(d)(1)(C)(iv), a Licensee 
shall pay 10% of such Licensee's ``Gross Proceeds'' derived from the use 
in such service of musical programs that are attributable to copyrighted 
recordings. ``Gross Proceeds'' as used in this section means all fees 
and payments, including those made in kind, received from any source 
before, during or after the License Period that are derived from the use 
of copyrighted sound recordings during the License Period pursuant to 17 
U.S.C. 112(e) for the sole purpose of facilitating a transmission to the 
public of a performance of a sound recording under the limitation on 
exclusive rights specified in 17 U.S.C. 114(d)(1)(C)(iv). 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, and

[[Page 755]]

    (2) For all other programs, the proportion that the number of 
copyrighted recordings bears to the total number of all recordings in 
the program.
    (b) Minimum fee. Each Licensee shall pay a minimum fee of $10,000 
for each calendar year in which it makes Ephemeral Recordings for use to 
facilitate transmissions under the limitation on exclusive rights 
specified by 17 U.S.C. 114(d)(1)(C)(iv), whether or not it does so for 
all or any part of the year. These minimum fees shall be nonrefundable, 
but shall be fully creditable to royalty payments due under paragraph 
(a) of this section for the same calendar year (but not any subsequent 
calendar year).
    (c) Other royalty rates and terms. This part 384 does not apply to 
persons or entities other than Licensees, or to Licensees to the extent 
that they make other types of ephemeral recordings beyond those set 
forth in paragraph (a) of this section. For ephemeral recordings other 
than those governed by paragraph (a) of this section, persons making 
such ephemeral recordings must pay royalties, to the extent (if at all) 
applicable, under 17 U.S.C. 112(e) or as prescribed by other law, 
regulation or agreement.