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17 U.S.C. § 1006 — Entitlement to royalty payments
Federal law — U.S. Code and appendices · legal_authorities
**(a) Interested Copyright Parties.—** The royalty payments deposited pursuant to section 1005 shall, in accordance with the procedures specified in section 1007, be distributed to any interested copyright party—
(1) whose musical work or sound recording has been—
(A) embodied in a digital musical recording or an analog musical recording lawfully made under this title that has been distributed, and
(B) distributed in the form of digital musical recordings or analog musical recordings or disseminated to the public in transmissions, during the period to which such payments pertain; and
(2) who has filed a claim under section 1007.
**(b) Allocation of Royalty Payments to Groups.—** The royalty payments shall be divided into 2 funds as follows:
(1) **The sound recordings fund.—** — 66⅔ percent of the royalty payments shall be allocated to the Sound Recordings Fund. 2⅝ percent of the royalty payments allocated to the Sound Recordings Fund shall be placed in an escrow account managed by an independent administrator jointly appointed by the interested copyright parties described in section 1001(7)(A) and the American Federation of Musicians (or any successor entity) to be distributed to nonfeatured musicians (whether or not members of the American Federation of Musicians or any successor entity) who have performed on sound recordings distributed in the United States. 1⅜ percent of the royalty payments allocated to the Sound Recordings Fund shall be placed in an escrow account managed by an independent administrator jointly appointed by the interested copyright parties described in section 1001(7)(A) and the American Federation of Television and Radio Artists (or any successor entity) to be distributed to nonfeatured vocalists (whether or not members of the American F
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Source location: Title 17, Chapter 10, § 1006; chapter-010-digital-audio-recording-devices-and-media.md
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**(a) Interested Copyright Parties.—** The royalty payments deposited pursuant to section 1005 shall, in accordance with the procedures specified in section 1007, be distributed to any interested copyright party—
(1) whose musical work or sound recording has been—
(A) embodied in a digital musical recording or an analog musical recording lawfully made under this title that has been distributed, and
(B) distributed in the form of digital musical recordings or analog musical recordings or disseminated to the public in transmissions, during the period to which such payments pertain; and
(2) who has filed a claim under section 1007.
**(b) Allocation of Royalty Payments to Groups.—** The royalty payments shall be divided into 2 funds as follows:
(1) **The sound recordings fund.—** — 66⅔ percent of the royalty payments shall be allocated to the Sound Recordings Fund. 2⅝ percent of the royalty payments allocated to the Sound Recordings Fund shall be placed in an escrow account managed by an independent administrator jointly appointed by the interested copyright parties described in section 1001(7)(A) and the American Federation of Musicians (or any successor entity) to be distributed to nonfeatured musicians (whether or not members of the American Federation of Musicians or any successor entity) who have performed on sound recordings distributed in the United States. 1⅜ percent of the royalty payments allocated to the Sound Recordings Fund shall be placed in an escrow account managed by an independent administrator jointly appointed by the interested copyright parties described in section 1001(7)(A) and the American Federation of Television and Radio Artists (or any successor entity) to be distributed to nonfeatured vocalists (whether or not members of the American Federation of Television and Radio Artists or any successor entity) who have performed on sound recordings distributed in the United States. 40 percent of the remaining royalty payments in the Sound Recordings Fund shall be distributed to the interested copyright parties described in section 1001(7)(C), and 60 percent of such remaining royalty payments shall be distributed to the interested copyright parties described in section 1001(7)(A).
(2) **The musical works fund.—**
(A) 33⅓ percent of the royalty payments shall be allocated to the Musical Works Fund for distribution to interested copyright parties described in section 1001(7)(B).
(B)
(i) Music publishers shall be entitled to 50 percent of the royalty payments allocated to the Musical Works Fund.
(ii) Writers shall be entitled to the other 50 percent of the royalty payments allocated to the Musical Works Fund.
**(c) Allocation of Royalty Payments Within Groups.—** If all interested copyright parties within a group specified in subsection (b) do not agree on a voluntary proposal for the distribution of the royalty payments within each group, the Copyright Royalty Judges shall, pursuant to the procedures specified under section 1007(c), allocate royalty payments under this section based on the extent to which, during the relevant period—
(1) for the Sound Recordings Fund, each sound recording was distributed in the form of digital musical recordings or analog musical recordings; and
(2) for the Musical Works Fund, each musical work was distributed in the form of digital musical recordings or analog musical recordings or disseminated to the public in transmissions.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Appointment.—** The Librarian of Congress shall appoint 3 full-time Copyright Royalty Judges, and shall appoint 1 of the 3 as the Chief Copyright Royalty Judge. The Librarian shall make appointments to such positions after consultation with the Register of Copyrights.
**(b) Functions.—** Subject to the provisions of this chapter, the functions of the Copyright Royalty Judges shall be as follows:
(1) To make determinations and adjustments of reasonable terms and rates of royalty payments as provided in sections 112(e), 114, 115, 116, 118, 119, and 1004.
(2) To make determinations concerning the adjustment of the copyright royalty rates under section 111 solely in accordance with the following provisions:
(A) The rates established by section 111(d)(1)(B) may be adjusted to reflect—
(i) national monetary inflation or deflation; or
(ii) changes in the average rates charged cable subscribers for the basic service of providing secondary transmissions to maintain the real constant dollar level of the royalty fee per subscriber which existed as of the date of October 19, 1976,
except that—
(I) if the average rates charged cable system subscribers for the basic service of providing secondary transmissions are changed so that the average rates exceed national monetary inflation, no change in the rates established by section 111(d)(1)(B) shall be permitted; and
(II) no increase in the royalty fee shall be permitted based on any reduction in the average number of distant signal equivalents per subscriber.
The Copyright Royalty Judges may consider all factors relating to the maintenance of such level of payments, including, as an extenuating factor, whether the industry has been restrained by subscriber rate regulating authorities from increas
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Federal law — U.S. Code and appendices · legal_authorities
Page 213
TITLE 17—COPYRIGHTS
§ 1006
payment for each digital audio recording de-
vice shall not be less than $1 nor more than
the royalty maximum. The royalty maximum
shall be $8 per device, except that in the case
of a physically integrated unit containing
more than 1 digital audio recording device, the
royalty maximum for such unit shall be $12.
During the 6th year after the effective date of
this chapter, and not more than once each
year thereafter, any interested copyright
party may petition the Copyright Royalty
Judges to increase the royalty maximum and,
if more than 20 percent of the royalty pay-
ments are at the relevant royalty maximum,
the Copyright Royalty Judges shall prospec-
tively increase such royalty maximum with
the goal of having no more than 10 percent of
such payments at the new royalty maximum;
however the amount of any such increase as a
percentage of the royalty maximum shall in
no event exceed the percentage increase in the
Consumer Price Index during the period under
review.
(b) DIGITAL AUDIO RECORDING MEDIA.—The roy-
alty payment due under section 1003 for each
digital audio recording medium imported into
and distributed in the United States, or manu-
factured and distributed in the United States,
shall be 3 percent of the transfer price. Only the
first person to manufacture and distribute or
import and distribute such medium shall be re-
quired to pay the royalty with respect to such
medium.
(Added Pub. L. 102–563, § 2, Oct. 28, 1992, 106 Stat.
4241; amended Pub. L. 103–198, § 6(b)(1), Dec. 17,
1993, 107 Stat. 2312; Pub. L. 108–419, § 5(i)(1), Nov.
30, 2004, 118 Stat. 2368.)
Editorial Notes
REFERENCES IN TEXT
The effective date of this chapter, referred to in sub-
sec. (a)(3), is Oct. 28, 1992. See Effective Dat
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