SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Compensating Legacy Artists for 
their Songs, Service, and Important Contributions to Society Act'' or 
the ``CLASSICS Act''.

SEC. 2. UNAUTHORIZED DIGITAL PERFORMANCE OF PRE-1972 SOUND RECORDINGS.

    (a) Amendment.--Title 17, United States Code, is amended by adding 
at the end the following new chapter:

   ``CHAPTER 14--UNAUTHORIZED DIGITAL PERFORMANCE OF PRE-1972 SOUND 
                               RECORDINGS

``Sec.
``1401. Unauthorized digital performance of pre-1972 sound recordings.
``Sec. 1401. Unauthorized digital performance of pre-1972 sound 
              recordings
    ``(a) Unauthorized Acts.--Anyone who, prior to February 15, 2067, 
performs publicly by means of digital audio transmission a sound 
recording fixed before February 15, 1972, without the consent of the 
rights owner, shall be subject to the remedies provided in sections 502 
through 505 to the same extent as an infringer of copyright.
    ``(b) Certain Unauthorized Transmissions.--Transmissions of sound 
recordings fixed before February 15, 1972, shall be considered 
authorized and with the consent of the rights owner for purposes of 
subsection (a), if--
            ``(1) the transmissions are made by a transmitting entity 
        publicly performing sound recordings protected under this title 
        by means of digital audio transmissions subject to section 114;
            ``(2) the transmissions would satisfy the requirements for 
        statutory licensing under section 114(d)(2) or would be exempt 
        under section 114(d)(1), if the sound recordings were fixed on 
        or after February 15, 1972;
            ``(3) in the case of transmissions that would not be exempt 
        under section 114(d)(1) as described in paragraph (2), the 
        transmitting entity pays statutory royalties and provides 
        notice of its use of the relevant sound recordings in the same 
        manner as required by regulations adopted by the Copyright 
        Royalty Judges for sound recordings that are protected under 
        this title; and
            ``(4) in the case of transmissions that would not be exempt 
        under section 114(d)(1) as described in paragraph (2), the 
        transmitting entity otherwise satisfies the requirements for 
        statutory licensing under section 114(f)(4)(B).
    ``(c) Transmissions by Direct Licensing of Statutory Services.--
            ``(1) In general.--A transmission of a sound recording 
        fixed before February 15, 1972, shall be considered authorized 
        and with the consent of the rights owner for purposes of 
        subsection (a) if included in any license agreement voluntarily 
        negotiated at any time between the rights owner and the entity 
        performing the sound recording.
            ``(2) Payment of royalties to nonprofit agent.--To the 
        extent that such a license extends to transmissions of sound 
        recordings fixed before February 15, 1972, that satisfy the 
        conditions of subsection (b), the licensee shall pay 50 percent 
        of the performance royalties for the transmissions due under 
        the license to the collective designated to distribute receipts 
        from the licensing of transmissions in accordance with section 
        114(f), with such royalties fully credited as payments due 
        under such license.
            ``(3) Distribution of royalties by nonprofit agent.--That 
        collective shall distribute the royalties received pursuant to 
        paragraph (2) in accordance with subparagraphs (B) through (D) 
        of section 114(g)(2). Such payments shall be the sole payments 
        to which featured and nonfeatured artists are entitled by 
        virtue of such transmissions under the license.
            ``(4) Rule of construction.--This section does not prohibit 
        any other license from directing the licensee to pay other 
        royalties due to featured and nonfeatured artists for such 
        transmissions to the collective designated to distribute 
        receipts from the licensing of transmissions in accordance with 
        section 114(f).
    ``(d) Relationship to State Law.--
            ``(1) In general.--Nothing in this section shall be 
        construed to annul or limit any rights or remedies under the 
        common law or statutes of any State for sound recordings fixed 
        before February 15, 1972, except, notwithstanding section 
        301(c), the following:
                    ``(A) This section preempts claims of common law 
                copyright or equivalent rights under the law of any 
                State arising from digital audio transmissions of sound 
                recordings fixed before February 15, 1972, made on and 
                after the effective date of this section.
                    ``(B) This section preempts claims of common law 
                copyright or equivalent rights under the law of any 
                State arising from reproductions of sound recordings 
                fixed before February 15, 1972, made on and after the 
                effective date of this section, for reproductions that 
                would satisfy the requirements for statutory licensing 
                under section 112(e)(1) and (6), if the sound 
                recordings were fixed on or after February 15, 1972.
                    ``(C) This section preempts claims of common law 
                copyright or equivalent rights under the law of any 
                State arising from digital audio transmissions and 
                reproductions of sound recordings fixed before February 
                15, 1972, made before the effective date of this 
                section, if--
                            ``(i) the digital audio transmissions and 
                        reproductions would have satisfied the 
                        requirements for statutory licensing under 
                        section 114(d)(2) or been exempt under section 
                        114(d)(1), or would have satisfied the 
                        requirements of section 112(e)(1), 
                        respectively; and
                            ``(ii) within 270 days after the effective 
                        date of this section, except in the case of 
                        transmissions that would have been exempt under 
                        section 114(d)(1), the transmitting entity pays 
                        statutory royalties and provides notice of the 
                        use of the relevant sound recordings in the 
                        same manner as required by regulations adopted 
                        by the Copyright Royalty Judges for sound 
                        recordings that are protected under this title 
                        for all the digital audio transmissions and 
                        reproductions satisfying the requirements for 
                        statutory licensing under section 114(d)(2) and 
                        section 112(e)(1) during the 3 years prior to 
                        the effective date of this section.
            ``(2) Rule of construction for common law copyright.--For 
        purposes of subparagraphs (A) through (C) of paragraph (1), 
        claims of common law copyright or equivalent rights under the 
        law of any State include claims that characterize conduct 
        subject to such subparagraphs as an unlawful distribution, act 
        of record piracy, or similar violation.
            ``(3) Rule of construction for public performance rights.--
        Nothing in this section shall be construed to recognize or 
        negate the existence of public performance rights in sound 
        recordings under the law of any State.
    ``(e) Limitations on Remedies.--
            ``(1) Fair use; reproduction by libraries and archives.--
        The limitations on the exclusive rights of a copyright owner 
        described in sections 107 and 108 shall apply to a claim for 
        unauthorized performance of a sound recording fixed before 
        February 15, 1972, under subsection (a).
            ``(2) Actions.--The limitations on actions described in 
        section 507 shall apply to a claim for unauthorized performance 
        of a sound recording fixed before February 15, 1972, under 
        subsection (a).
            ``(3) Material online.--The limitations on liability 
        described in section 512 of this title shall apply to a claim 
        for unauthorized performance of a sound recording fixed before 
        February 15, 1972, under subsection (a).
            ``(4) Principles of equity.--Principles of equity apply to 
        remedies for a violation of this section to the same extent as 
        such principles apply to remedies for infringement of 
        copyright.
    ``(f) Application of Section 230 Safe Harbor.--For purposes of 
section 230 of the Communications Act of 1934 (47 U.S.C. 230), 
subsection (a) shall be considered `intellectual property laws' under 
subsection (e)(2) of such section.
    ``(g) Rights Owner Defined.--In this section, the term `rights 
owner' means the person who has the exclusive right to reproduce a 
sound recording under the law of any State.''.
    (b) Technical and Conforming Amendment.--The table of chapters for 
title 17, United States Code, is amended by adding at the end the 
following new chapter:

``14. Unauthorized Digital Performance of Pre-1972 Sound        1401''.
                            Recordings.
Compensating Legacy Artists for their Songs, Service, and Important Contributions to Society Act or the CLASSICS Act This bill provides federal copyright protection for sound recordings fixed before February 15, 1972, specifically the right to make digital transmissions. Currently, pre-1972 recordings are only covered by state law. Pre-1972 recordings will fall within the existing compulsory license system for digital transmissions, which currently only cover post-1972 recordings. The bill preempts claims under state and common law for digital transmission of pre-1972 recordings.
Compensating Legacy Artists for their Songs, Service, and Important Contributions to Society Act