#### § 390.1 Definitions.

*Administrative assessment* has the meaning set forth in 17 U.S.C. 115(e)(3).

*Aggregate Sound Recordings Count* means the sum of the Unique Sound Recordings Counts of each and every Allocated Licensee, calculated over the respective Quarterly Allocation calculation period.

*Allocated Licensees* mean licensees as set forth in § 390.3(a) who are allocated an additional share of assessments beyond the annual minimum fee.

*Allocated Licensee Assessment Pool* means an amount equaling 50% of each Annual Assessment and Quarterly Allocation.

*Annual Assessment* means the administrative assessment for each calendar year beginning with the calendar year 2023.

*Annual Calculation Period* means the calculation period for annual minimum fees, as set forth in § 390.3(b).

*Annual minimum fee* means the minimum amount each Licensee shall pay for each Annual Assessment period, as set forth in § 390.3.

*Blanket Licensee* means a digital music provider that is engaged, in all or in part, in covered activities pursuant to a compulsory blanket license described in 17 U.S.C. 115(d).

*Covered activity* has the meaning set forth in 17 U.S.C. 115(e)(7).

*Digital licensee coordinator* or *DLC* has the meaning set forth in 17 U.S.C. 115(e)(9).

*ECI* means the Employment Cost Index for total compensation (not seasonally adjusted), all civilian workers, as published on the website of the United States Department of Labor, Bureau of Labor Statistics, for the most recent 12-month period for which data are available on the date that is 60 days prior to the start of the calendar year.

*Flat Fee Licensees* mean licensees as set forth in § 390.3(a) who are not allocated an additional share of assessments beyond the annual minimum fee.

*License availability date* has the meaning set forth in 17 U.S.C. 115(e)(15).

*Licensee* means either a Blanket Licensee or a Significant Nonblanket Licensee.

*Mechanical licensing collective* or *MLC* has the meaning set forth in 17 U.S.C. 115(e)(18).

*New Licensee* means a Licensee that begins engaging in covered activities on or after the license availability date.

*Notice of license* has the meaning set forth in 17 U.S.C. 115(e)(22).

*Notice of nonblanket activity* has the meaning set forth in 17 U.S.C. 115(e)(23).

*Quarterly Allocation* means each of four equal parts of each Annual Assessment, to be paid on a calendar quarterly basis.

*Significant Nonblanket Licensee* has the meaning set forth in 17 U.S.C. 115(e)(31).

*Startup Assessment* means the one-time administrative assessment for the startup phase of the MLC.

*Threshold Licensee* means an Allocated Licensee that reports at least 7.5% of the Aggregate Sound Recordings Count of all Allocated Licensees.

*Threshold Licensee Assessment Pool* means an amount equaling 50% of each Annual Assessment and Quarterly Allocation.

*Unique Sound Recordings Count* means, for each Licensee, the number of unique sound recordings used and reported per month by such Licensee in Section 115 covered activities, such as would be reflected in the information required to be reported under 17 U.S.C. 115(d), calculated as a monthly average over the respective calculation period, except that a sound recording of a musical work that is in the public domain and designated as such in a monthly report of use shall not count towards the Licensee's Unique Sound Recordings Count. For example, a Licensee's Unique Sound Recordings Count for a Quarterly Allocation calculation period will be calculated by adding together the counts of unique sound recordings reported by such Licensee to the MLC during each month of that quarter and dividing that sum by three. A Licensee's Unique Sound Recordings Count for an Annual Calculation Period will be calculated by adding together the counts of unique sound recordings reported by such Licensee to the MLC during each month of that twelve-month period and dividing that sum by twelve. In the case of a Licensee that was engaged in covered activities only for part of a Quarterly Allocation calculation period or Annual Calculation Period, the monthly average shall be calculated using only the calendar months that the Licensee was engaged in covered activities. In the case of a Licensee that was not engaged in covered activities during any part of a Quarterly Allocation calculation period or Annual Calculation Period, the monthly average shall be zero. Within each month's usage reports from a particular Licensee, a sound recording reported multiple times with the same metadata would be counted as a single sound recording, and a sound recording reported multiple times each with different metadata would be counted multiple times, once for each reporting with new or different metadata.

[86 FR 6568, Jan. 22, 2021, as amended at 88 FR 69039, Oct. 5, 2023]