‘‘(ii) the copyright owner shall refund 
to the licensee the amounts of any overpay-
ment of fees by the licensee because the in-
terim rate exceeds the final rate, or, at the 
election of the licensee, the copyright 
owner 
shall 
credit 
such 
overpayment 
against future payments by the licensee to 
the copyright owner under this subsection. 
’’. 
SEC. 105. TECHNICAL AMENDMENTS. 
(a) DEFINITION.—Section 115(d) of title 17, United 
States Code, is amended— 
(1) in the first sentence, by striking ‘‘As used’’ 
and inserting by adding at the end the following: ‘‘.’’ 
‘‘(1) IN GENERAL.—As used’’; 
(2) by moving the remaining text 2 ems to the 
right; and 
(3) by adding at the end the following: 
‘‘(2) INTERACTIVE STREAMS.—The term ‘dig-
ital phonorecord delivery’ includes an interactive 
stream (as such term is defined in subsection 
(e)(14)(H)) of nondramatic musical works, on the 
following terms: 
‘‘(A) An interactive stream is an incidental 
digital phonorecord delivery as described in sub-
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section (c)(3)(C)(i) and (D)(i). An interactive 
stream is not a general digital phonorecord de-
livery as described in subsection (c)(3)(C)(ii) 
and (D)(ii). 
‘‘(B) The Copyright Royalty Judges, in es-
tablishing royalty rates or terms for digital pho-
norecord deliveries, shall not consider the char-
acterization, in this section or regulations 
issued under this section, of a digital phono-
record delivery as general or incidental. The 
preceding sentence does not limit the ability of 
the Copyright Royalty Judges to refer to the 
actual nature or functionality of the particular 
type of digital phonorecord delivery in a rate-
making proceeding.’’. 
(b) CONFORMING AMENDMENTS.—Section 115(c) of 
title 17, United States Code, is amended— 
(1) in paragraph (3)— 
(A) in the first sentence of subparagraph 
(A), by striking ‘‘or authorize the distribution 
of’’; 
(B) in subparagraph (C), by striking 
‘‘Such terms and rates shall distinguish’’ and 
all that follows through the end of the sentence; 
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(C) in subparagraph (D), by striking 
‘‘Such terms and rates shall distinguish’’ and 
all that follows through the end of the sentence; 
and 
(D) in subparagraph (E)(i), by inserting 
after ‘‘License agreements,’’ the following: ‘‘to 
make and distribute phonorecords other than 
digital phonorecord deliveries and hybrid offer-
ings’’ ; and 
(2) in paragraph (5)— 
(A) by striking ‘‘(5) Royalty payments’’ 
and inserting ‘‘(5)(A) Subject to subparagraph 
(B), royalty payments’’; and 
(B) by adding at the end the following: 
‘‘(B) Payments under the license provided for 
under subsection (e) shall be governed by that sub-
section in lieu of subparagraph (A).’’. 
SEC. 106. EFFECTIVE DATE. 
(a) IN GENERAL.—Subject to subsection (b), this 
title and the amendments made by this title take effect 
on the date of the enactment of this Act. 
(b) DELAY OF LICENSES.—No license under sub-
section (e) of section 115 of title 17, United States Code, 
may take effect before January 1, 2008. 
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SEC. 107. SAVINGS CLAUSES. 
(a) SCOPE OF RIGHTS COVERED.—This title and the 
amendments made by this title are limited to the exclusive 
rights to reproduce and distribute musical works as pro-
vided by paragraphs (1) and (3) of section 106 of title 
17, United States Code, and do not create any new exclu-
sive rights under section 106 of title 17, United Stats 
Code. 
(b) FAIR USE.—Nothing in this title shall affect any 
right, limitation, or defense to copyright infringement, in-
cluding fair use, under title 17, United States Code. 
(c) PROTECTIONS
OF SERVICE PROVIDERS.—This 
title and the amendments made by this title shall not be 
construed to limit in any manner the protections afforded 
to service providers under section 512 of title 17, United 
States Code. 
SEC. 108. STAYING OF INFRINGEMENT ACTIONS. 
If an action for infringement is brought against a dig-
ital music provider (as defined in section 115(e)(14) of 
title 17, United States Code) for activities engaged in be-
fore January 1, 2008, that may be covered by a license 
under section 115(e) of title 17, United States Code, the 
court may stay the action until not later than March 1, 
2008, if the digital music provider makes the payments 
required under section 115(e)(6) of such title, for such 
activities. 
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