132 STAT. 3680 PUBLIC LAW 115–264–OCT. 11, 2018
obtain a compulsory license under subsection (a) may nego-
tiate and agree upon the terms and rates of royalty pay-
ments under this section and the proportionate division
of fees paid among copyright owners, and may designate
common agents on a nonexclusive basis to negotiate, agree
to, pay or receive such royalty payments. Such authority
to negotiate the terms and rates of royalty payments
includes, but is not limited to, the authority to negotiate
the year during which the royalty rates prescribed under
this subparagraph, subparagraphs (E) and (F), paragraph
(2)(A), and chapter 8 shall next be determined.
‘‘(E) D
ETERMINATION OF REASONABLE RATES AND
TERMS
.—Proceedings under chapter 8 shall determine
reasonable rates and terms of royalty payments for the
activities specified by this section during the period begin-
ning with the effective date of such rates and terms, but
not earlier than January 1 of the second year following
the year in which the petition requesting the proceeding
is filed, and ending on the effective date of successor rates
and terms, or such other period as the parties may agree.
Any copyright owners of nondramatic musical works and
any persons entitled to obtain a compulsory license under
subsection (a) may submit to the Copyright Royalty Judges
licenses covering such activities. The parties to each pro-
ceeding shall bear their own costs.
‘‘(F) S
CHEDULE OF REASONABLE RATES
.—The schedule
of reasonable rates and terms determined by the Copyright
Royalty Judges shall, subject to paragraph (2)(A), be
binding on all copyright owners of nondramatic musical
works and persons entitled to obtain a compulsory license
under subsection (a) during the period specified in subpara-
graph (E), such other period as may be determined pursu-
ant to subparagraphs (D) and (E), or such other period
as the parties may agree. The Copyright Royalty Judges
shall establish rates and terms that most clearly represent
the rates and terms that would have been negotiated in
the marketplace between a willing buyer and a willing
seller. In determining such rates and terms for digital
phonorecord deliveries, the Copyright Royalty Judges shall
base their decision on economic, competitive, and program-
ming information presented by the parties, including—
‘‘(i) whether use of the compulsory licensee’s
service may substitute for or may promote the sales
of phonorecords or otherwise may interfere with or
may enhance the musical work copyright owner’s other
streams of revenue from its musical works; and
‘‘(ii) the relative roles of the copyright owner and
the compulsory licensee in the copyrighted work and
the service made available to the public with respect
to the relative creative contribution, technological con-
tribution, capital investment, cost, and risk.
‘‘(2) A
DDITIONAL TERMS AND CONDITIONS
.—
‘‘(A) V
OLUNTARY LICENSES AND CONTRACTUAL ROYALTY
RATES
.—
‘‘(i) I
N GENERAL
.—License agreements voluntarily
negotiated at any time between one or more copyright
owners of nondramatic musical works and one or more
Time period.
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