Copyright Office. The owner is entitled to royalties for sound recordings
made and distributed after being so identified, but is not entitled to recover
for any sound recordings previously made and distributed.
(2)
Except as provided by clause (1) the royalty under compulsory license shall
be payable for every sound recording and distributed in accordance with the
license. For this purpose, a sound recording is considered "distributed" if the
person exercising the compulsory license has voluntarily and permanently
parted with its possession. With respect to each work embodied in the sound
recording, the royalty shall be prescribed by the Copyright Board.
(3)
A compulsory license under this section includes the right of the maker of a
sound recording of a non-dramatic musical work under sub-section (a) (1) to
distribute or authorize distribution of such sound recording by rental, lease or
lending (or acts or practices in the nature of rental, lease or lending). In
addition, a royalty shall be payable by the compulsory licensee for every act
of distribution of sound recording by or in the nature of rental, lease or
lending, by or under the authority of the compulsory licensee. With respect
to each non-dramatic musical work embodied in the sound recording, the
royalty shall be a proportion of the revenue received by the compulsory
licensee from every such distribution of the sound recording under clause (2)
that is payable by a compulsory licensee under that section. The Director
General of copyright shall issue regulations to carry out the purpose of this
clause.
(4)
Royalty payments shall be made on or before the so" day of each month and
shall include all royalties for the month next preceding. Each monthly
payment shall be made under oath and shall comply with requirements that
the Director General of Copyright shall prescribe by regulations. The
Director General shall also prescribe regulations under which detailed
cumulative annual statements of account, certified by a Certified Public
Accountant, shall be filed for every compulsory license under this section.
The regulations covering both the monthly and annual statements of account
shall prescribe the form, content, and manner of certification with respect to
the number of record made and the number of records distributed.
(5)
If the copyright owner does not receive the monthly payment and the
monthly and annual statements of account when due, the owner may give
written notice to the licensee that, unless the default is remedied within
thirty days from the date of the notice, the compulsory license will be
automatically terminated. Such termination renders either the making or the
distribution, or both, of all sound recordings for which the royalty has not
been paid, actionable as acts of infringement under Section 2.40 and fully
subject to the remedies provided by Sections 2.42 , 2.48 through 2.52.
SECTION:
A.
2.18
SCOPE OF EXCLUSIVE RIGHTS IN NON-DRAMATIC
WORKS: PUBLIC PERFORMANCES BY MEANS OF
COIN-OPERATED SOUND RECORDING PLAYERS
LIMITATIONS OF EXCLUSIVE RIGHTS
In the case of non-dramatic musical or embodied in a sound recording, the exclusive
right under clause (d) of Section 2.6 to perform the work publicly by means of a
coin-operated sound recording player is limited as follows:
21