121 
‘‘(i) an entity whose covered activity 
consists solely of free-to-the-user streams 
of segments of sound recordings of musical 
works that do not exceed 90 seconds in 
length, are offered only to facilitate a li-
censed use of musical works that is not a 
covered activity, and have no revenue di-
rectly attributable to such streams consti-
tuting the covered activity; or 
‘‘(ii) a ‘public broadcasting entity’ as 
defined in section 118(f). 
‘‘(32) SONGWRITER.—The term ‘songwriter’ 
means the author of all or part of a musical work, 
including a composer or lyricist. 
‘‘(33) STATE.—The term ‘State’ means each 
State of the United States, the District of Columbia, 
and each territory or possession of the United 
States. 
‘‘(34) UNCLAIMED ACCRUED ROYALTIES.—The 
term ‘unclaimed accrued royalties’ means accrued 
royalties eligible for distribution under subsection 
(d)(3)(J). 
‘‘(35) UNMATCHED.—The term ‘unmatched’, as 
applied to a musical work (or share thereof), means 
VerDate Sep 11 2014 
01:21 Apr 11, 2018
Jkt 079200
PO 00000
Frm 00121
Fmt 6652
Sfmt 6201
E:\BILLS\H5447.IH
H5447
lotter on DSKBCFDHB2PROD with BILLS
122 
that the copyright owner of such work (or share 
thereof) has not been identified or located. 
‘‘(36) VOLUNTARY
LICENSE.—The term ‘vol-
untary license’ means a license for use of a musical 
work (or share thereof) other than a compulsory li-
cense obtained under this section.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENTS TO 
SECTION 801.—Section 801(b) of title 17, United States 
Code, is amended— 
(1) by redesignating paragraph (8) as para-
graph (9); and 
(2) by inserting after paragraph (7) the fol-
lowing new paragraph: 
‘‘(8) To determine the administrative assess-
ment to be paid by digital music providers under 
section 115(d). The provisions of section 115(d) 
shall apply to the conduct of proceedings by the 
Copyright Royalty Judges under section 115(d) and 
not the procedures described in this section, or sec-
tion 803, 804, or 805.’’. 
(c) EFFECTIVE DATE OF AMENDED RATE SETTING 
STANDARD.—The amendments made by subsections 
(a)(3)(D) and (b)(1) shall apply to any proceeding before 
the Copyright Royalty Judges that is pending on, or com-
menced on or after, the date of the enactment of this Act. 
VerDate Sep 11 2014 
01:21 Apr 11, 2018
Jkt 079200
PO 00000
Frm 00122
Fmt 6652
Sfmt 6201
E:\BILLS\H5447.IH
H5447
lotter on DSKBCFDHB2PROD with BILLS
123 
(d) TECHNICAL AND CONFORMING AMENDMENTS TO 
TITLE 37, PART 385 OF THE CODE OF FEDERAL REGU-
LATIONS.—Within 9 months after the date of the enact-
ment of this Act, the Copyright Royalty Judges shall 
amend the regulations for section 115 in part 385 of title 
37, Code of Federal Regulations to conform the definitions 
used in such part to the definitions of the same terms de-
scribed in section 115(e) of title 17, United States Code, 
as amended by subsection (a). In so doing, the Copyright 
Royalty Judges shall make adjustments to the language 
of the regulations as necessary to achieve the same pur-
pose and effect as the original regulations with respect to 
the rates and terms previously adopted by the Copyright 
Royalty Judges. 
SEC. 103. AMENDMENTS TO SECTION 114. 
(a) UNIFORM RATE STANDARD.—Section 114(f) of 
title 17, United States Code, is amended— 
(1) by striking paragraphs (1) and (2) and in-
serting the following: 
‘‘(1)(A) Proceedings under chapter 8 shall de-
termine reasonable rates and terms of royalty pay-
ments for transmissions subject to statutory licens-
ing under subsection (d)(2) during the 5-year period 
beginning on January 1 of the second year following 
the year in which the proceedings are to be com-
VerDate Sep 11 2014 
01:21 Apr 11, 2018
Jkt 079200
PO 00000
Frm 00123
Fmt 6652
Sfmt 6201
E:\BILLS\H5447.IH
H5447
lotter on DSKBCFDHB2PROD with BILLS
124 
menced pursuant to subparagraph (A) or (B) of sec-
tion 804(b)(3), as the case may be, or such other pe-
riod as the parties may agree. The parties to each 
proceeding shall bear their own costs. 
‘‘(B) The schedule of reasonable rates and 
terms determined by the Copyright Royalty Judges 
shall, subject to paragraph (2), be binding on all 
copyright owners of sound recordings and entities 
performing sound recordings affected by this para-
graph during the 5-year period specified in subpara-
graph (A), or such other period as the parties may 
agree. Such rates and terms shall distinguish among 
the different types of services then in operation and 
shall include a minimum fee for each such type of 
service, such differences to be based on criteria in-
cluding the quantity and nature of the use of sound 
recordings and the degree to which use of the service 
may substitute for or may promote the purchase of 
phonorecords by consumers. 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, the Copyright Royalty 
Judges— 
VerDate Sep 11 2014 
01:21 Apr 11, 2018
Jkt 079200
PO 00000
Frm 00124
Fmt 6652
Sfmt 6201
E:\BILLS\H5447.IH
H5447
lotter on DSKBCFDHB2PROD with BILLS
125 
‘‘(i) shall base their decision on economic, 
competitive, and programming information pre-
sented by the parties, including— 
‘‘(I) whether use of the service may 
substitute for or may promote the sales of 
phonorecords or otherwise may interfere 
with or may enhance the sound recording 
copyright owner’s other streams of revenue 
from the copyright owner’s sound record-
ings; and 
‘‘(II) the relative roles of the copy-
right owner and the transmitting entity in 
the copyrighted work and the service made 
available to the public with respect to rel-
ative creative contribution, technological 
contribution, capital investment, cost, and 
risk; and 
‘‘(ii) may consider the rates and terms for 
comparable types of audio transmission services 
and comparable circumstances under voluntary 
license agreements. 
‘‘(C) The procedures under subparagraphs (A) 
and (B) shall also be initiated pursuant to a petition 
filed by any sound recording copyright owner or any 
transmitting entity indicating that a new type of 
VerDate Sep 11 2014 
01:21 Apr 11, 2018
Jkt 079200
PO 00000
Frm 00125
Fmt 6652
Sfmt 6201
E:\BILLS\H5447.IH
H5447
lotter on DSKBCFDHB2PROD with BILLS
126 
service on which sound recordings are performed is 
or is about to become operational, for the purpose 
of determining reasonable terms and rates of royalty 
payments with respect to such new type of service 
for the period beginning with the inception of such 
new type of service and ending on the date on which 
the royalty rates and terms for eligible nonsubscrip-
tion services and new subscription services, or pre-
existing services, as the case may be, most recently 
determined under subparagraph (A) or (B) and 
chapter 8 expire, or such other period as the parties 
may agree.’’; and 
(2) by redesignating paragraphs (3), (4), and 
(5) as paragraphs (2), (3), and (4), respectively. 
(b) REPEAL.—Subsection (i) of section 114 of title 
17, United States Code, is repealed. 
(c) USE IN MUSICAL WORK PROCEEDINGS.— 
(1) IN GENERAL.—License fees payable for the 
public performance of sound recordings under sec-
tion 106(6) of title 17, United States Code, shall not 
be taken into account in any administrative, judicial, 
or other governmental proceeding to set or adjust 
the royalties payable to musical work copyright own-
ers for the public performance of their works except 
in such a proceeding to set or adjust royalties for 
VerDate Sep 11 2014 
01:21 Apr 11, 2018
Jkt 079200
PO 00000
Frm 00126
Fmt 6652
Sfmt 6201
E:\BILLS\H5447.IH
H5447
lotter on DSKBCFDHB2PROD with BILLS
127 
the public performance of musical works by means 
of a digital audio transmission other than a trans-
mission by a broadcaster, and may be taken into ac-
count only with respect to such digital audio trans-
mission. 
(2) DEFINITIONS.—In this subsection: 
(A) TRANSMISSION BY A BROADCASTER.— 
A ‘‘transmission by a broadcaster’’ means a 
nonsubscription digital transmission made by a 
terrestrial broadcast station on its own behalf, 
or on the behalf of a terrestrial broadcast sta-
tion under common ownership or control, that 
is not part of an interactive service or a music- 
intensive service comprising the transmission of 
sound recordings customized for or customiz-
able by recipients or service users. 
(B) TERRESTRIAL BROADCAST STATION.— 
A ‘‘terrestrial broadcast station’’ means a ter-
restrial, over-the-air radio or television broad-
cast station, licensed as such by the Federal 
Communications Commission, including an FM 
Translator as defined in section 74.1231 of title 
47, Code of Federal Regulations, and whose 
primary business activities are comprised of, 
and revenues are generated through, terrestrial, 
VerDate Sep 11 2014 
01:21 Apr 11, 2018
Jkt 079200
PO 00000
Frm 00127
Fmt 6652
Sfmt 6201
E:\BILLS\H5447.IH
H5447
lotter on DSKBCFDHB2PROD with BILLS
128 
over-the-air broadcast transmissions, or the si-
multaneous or substantially-simultaneous digital 
retransmission by the terrestrial, over-the-air 
broadcast station of its over-the-air broadcast 
transmissions. 
(d) RULE
OF CONSTRUCTION.—Subsection (c)(2) 
shall not be given effect in interpreting provisions of title 
17, United States Code. 
(e) USE IN SOUND RECORDING PROCEEDINGS.—The 
repeal of section 114(i) of title 17, United States Code, 
by subsection (b) shall not be taken into account in any 
proceeding to set or adjust the rates and fees payable for 
the use of sound recordings under section 112(e) or sec-
tion 114(f) of such title that is pending on, or commenced 
on or after, the date of the enactment of this Act. 
(f) DECISIONS AND PRECEDENTS NOT AFFECTED.— 
The repeal of section 114(i) of title 17, United States 
Code, by subsection (b) shall not have any effect upon the 
decisions, or the precedents established or relied upon, in 
any proceeding to set or adjust the rates and fees payable 
for the use of sound recordings under section 112(e) or 
section 114(f) of such title before the date of the enact-
ment of this Act. 
(g) TECHNICAL AND CONFORMING AMENDMENTS.— 
VerDate Sep 11 2014 
01:21 Apr 11, 2018
Jkt 079200
PO 00000
Frm 00128
Fmt 6652
Sfmt 6201
E:\BILLS\H5447.IH
H5447
lotter on DSKBCFDHB2PROD with BILLS
129 
(1) SECTION 114.—Section 114(f) of title 17, 
United States Code, as amended by subsection (a), 
is further amended in paragraph (4)(C), as so redes-
ignated, by striking ‘‘under paragraph (4)’’ and in-
serting ‘‘under paragraph (3)’’. 
(2) SECTION
801.—Section 801(b)(1) of title 
17, United States Code, is amended by striking 
‘‘The rates applicable’’ and all that follows though 
‘‘prevailing industry practices’’. 
(3) SECTION 804.—Section 804(b)(3)(C) of title 
17, United States Code, is amended— 
(A) in clause (i), by striking ‘‘and 
114(f)(2)(C)’’; 
(B) 
in 
clause 
(iii)(II), 
by 
striking 
‘‘114(f)(4)(B)(ii)’’ 
and 
inserting 
‘‘114(f)(3)(B)(ii)’’; and 
(C) in clause (iv), by striking ‘‘or 
114(f)(2)(C), as the case may be’’. 
SEC. 104. RANDOM ASSIGNMENT OF RATE COURT PRO-
CEEDINGS. 
Section 137 of title 28, United States Code, is 
amended— 
(1) by striking ‘‘The business’’ and inserting 
‘‘(A) IN GENERAL. The business’’; and 
VerDate Sep 11 2014 
01:21 Apr 11, 2018
Jkt 079200
PO 00000
Frm 00129
Fmt 6652
Sfmt 6201
E:\BILLS\H5447.IH
H5447
lotter on DSKBCFDHB2PROD with BILLS
130 
(2) by adding at the end the following new sub-
section: 
‘‘(b) RANDOM ASSIGNMENT OF RATE COURT PRO-
CEEDINGS.— 
‘‘(1) IN GENERAL.— 
‘‘(A) DETERMINATION OF LICENSE FEE.— 
Except as provided in subparagraph (B), in the 
case of any performing rights society subject to 
a consent decree, any application for the deter-
mination of a license fee for the public perform-
ance of music in accordance with the applicable 
consent decree shall be made in the district 
court with jurisdiction over that consent decree 
and randomly assigned to a judge of that dis-
trict court according to that court’s rules for 
the division of business among district judges 
currently in effect or as may be amended from 
time to time, provided that any such application 
shall not be assigned to— 
‘‘(i) a judge to whom continuing juris-
diction over any performing rights society 
for any performing rights society consent 
decree is assigned or has previously been 
assigned; or 
VerDate Sep 11 2014 
01:21 Apr 11, 2018
Jkt 079200
PO 00000
Frm 00130
Fmt 6652
Sfmt 6201
E:\BILLS\H5447.IH
H5447
lotter on DSKBCFDHB2PROD with BILLS
131 
‘‘(ii) a judge to whom another pro-
ceeding concerning an application for the 
determination of a reasonable license fee is 
assigned at the time of the filing of the ap-
plication. 
‘‘(B) 
EXCEPTION.—Subparagraph 
(A) 
does not apply to an application to determine 
reasonable license fees made by individual pro-
prietors under section 513 of title 17. 
‘‘(2) RULE
OF
CONSTRUCTION.—Nothing in 
paragraph (1) shall modify the rights of any party 
to a consent decree or to a proceeding to determine 
reasonable license fees, to make an application for 
the construction of any provision of the applicable 
consent decree. Such application shall be referred to 
the judge to whom continuing jurisdiction over the 
applicable consent decree is currently assigned. If 
any such application is made in connection with a 
rate proceeding, such rate proceeding shall be stayed 
until the final determination of the construction ap-
plication. Disputes in connection with a rate pro-
ceeding about whether a licensee is similarly situated 
to another licensee shall not be subject to referral to 
the judge with continuing jurisdiction over the appli-
cable consent decree.’’. 
VerDate Sep 11 2014 
01:21 Apr 11, 2018
Jkt 079200
PO 00000
Frm 00131
Fmt 6652
Sfmt 6201
E:\BILLS\H5447.IH
H5447
lotter on DSKBCFDHB2PROD with BILLS
132 
TITLE II—COMPENSATING LEG-
ACY 
ARTISTS 
FOR 
THEIR 
SONGS, SERVICE, AND IMPOR-
TANT CONTRIBUTIONS TO SO-
CIETY 
SEC. 201. SHORT TITLE. 
This title may be cited as the ‘‘Compensating Legacy 
Artists for their Songs, Service, and Important Contribu-
tions to Society Act’’ or the ‘‘CLASSICS Act’’. 
SEC. 202. UNAUTHORIZED DIGITAL PERFORMANCE OF PRE- 
1972 SOUND RECORDINGS. 
(a) PROTECTION FOR UNAUTHORIZED DIGITAL PER-
FORMANCES.—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. 
‘‘§ 1401. Unauthorized digital performance of pre- 
1972 sound recordings 
‘‘(a) UNAUTHORIZED ACTS.—Anyone who, before 
February 15, 2067, and without the consent of the rights 
owner, performs publicly, by means of a digital audio 
transmission, a sound recording fixed on or after January 
1, 1923, and before February 15, 1972, shall be subject 
VerDate Sep 11 2014 
01:21 Apr 11, 2018
Jkt 079200
PO 00000
Frm 00132
Fmt 6652
Sfmt 6201
E:\BILLS\H5447.IH
H5447
lotter on DSKBCFDHB2PROD with BILLS
133 
to the remedies provided in sections 502 through 505 to 
the same extent as an infringer of copyright. 
‘‘(b) CERTAIN
AUTHORIZED
TRANSMISSIONS.—A 
digital audio transmission of a sound recording fixed on 
or after January 1, 1923, and before February 15, 1972, 
shall, for purposes of subsection (a), be considered to be 
authorized and made with the consent of the rights owner 
if— 
‘‘(1) the transmission is made by a transmitting 
entity that is publicly performing sound recordings 
fixed on or after February 15, 1972, by means of 
digital audio transmissions subject to section 114; 
‘‘(2) the transmission would satisfy the require-
ments 
for 
statutory 
licensing 
under 
section 
114(d)(2), or would be exempt under section 
114(d)(1), if the sound recording were fixed on or 
after February 15, 1972; 
‘‘(3) in the case of a transmission that would 
not be exempt under section 114(d)(1) as described 
in paragraph (2), the transmitting entity pays statu-
tory royalties and provides notice of its use of the 
relevant sound recordings in the same manner as is 
required by regulations adopted by the Copyright 
Royalty Judges for sound recordings fixed on or 
after February 15, 1972; and 
VerDate Sep 11 2014 
01:21 Apr 11, 2018
Jkt 079200
PO 00000
Frm 00133
Fmt 6652
Sfmt 6201
E:\BILLS\H5447.IH
H5447
lotter on DSKBCFDHB2PROD with BILLS
134 
‘‘(4) in the case of a transmission 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 on or after January 1, 1923, and be-
fore February 15, 1972, shall, for purposes of sub-
section (a), be considered to be authorized and made 
with the consent of the rights owner if such trans-
mission is included in a license agreement volun-
tarily negotiated at any time between the rights 
owner and the entity performing the sound record-
ing. 
‘‘(2) PAYMENT OF ROYALTIES TO NONPROFIT 
COLLECTIVE.—To the extent that such a license 
agreement entered into on or after the date of the 
enactment of this section extends to digital audio 
transmissions of a sound recording fixed on or after 
January 1, 1923, and before February 15, 1972, 
that meet the conditions of subsection (b), the li-
censee shall pay, to the collective designated to dis-
tribute receipts from the licensing of transmissions 
VerDate Sep 11 2014 
01:21 Apr 11, 2018
Jkt 079200
PO 00000
Frm 00134
Fmt 6652
Sfmt 6201
E:\BILLS\H5447.IH
H5447
lotter on DSKBCFDHB2PROD with BILLS
135 
in accordance with section 114(f), 50 percent of the 
performance royalties for the transmissions due 
under the license, with such royalties fully credited 
as payments due under the license. 
‘‘(3) DISTRIBUTION OF ROYALTIES BY COLLEC-
TIVE.—The collective described in paragraph (2) 
shall, in accordance with subparagraphs (B) through 
(D) of section 114(g)(2), and paragraphs (5) and 
(6) of section 114(g)), distribute the royalties re-
ceived under paragraph (2) under the license de-
scribed in paragraph (2). Such payments shall be 
the only payments to which featured and nonfea-
tured artists are entitled by virtue of the trans-
missions described in paragraph (2) under the li-
cense. 
‘‘(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 
VerDate Sep 11 2014 
01:21 Apr 11, 2018
Jkt 079200
PO 00000
Frm 00135
Fmt 6652
Sfmt 6201
E:\BILLS\H5447.IH
H5447
lotter on DSKBCFDHB2PROD with BILLS
136 
remedies under the common law or statutes of any 
State for sound recordings fixed before February 15, 
1972, except, notwithstanding section 301(c), for the 
following: 
‘‘(A) This section preempts any claim of 
common law copyright or equivalent right under 
the laws of any State arising from any digital 
audio transmission that is made, on and after 
the date of the enactment of this section, of a 
sound recording fixed on or after January 1, 
1923, and before February 15, 1972. 
‘‘(B) This section preempts any claim of 
common law copyright or equivalent right under 
the laws of any State arising from any repro-
duction that is made, on and after the date of 
the enactment of this section, of a sound re-
cording fixed on or after January 1, 1923, and 
before February 15, 1972, and that would sat-
isfy the requirements for statutory licensing 
under paragraphs (1) and (6) of section 112(e), 
if the sound recording were fixed on or after 
February 15, 1972. 
‘‘(C) This section preempts any claim of 
common law copyright or equivalent right under 
the laws of any State arising from any digital 
VerDate Sep 11 2014 
01:21 Apr 11, 2018
Jkt 079200
PO 00000
Frm 00136
Fmt 6652
Sfmt 6201
E:\BILLS\H5447.IH
H5447
lotter on DSKBCFDHB2PROD with BILLS
137 
audio transmission or reproduction that is 
made, before the date of the enactment of this 
section, of a sound recording fixed on or after 
January 1, 1923, and before February 15, 
1972, if— 
‘‘(i) the digital audio transmission 
would have satisfied the requirements for 
statutory licensing under section 114(d)(2) 
or been exempt under section 114(d)(1), or 
the reproduction would have satisfied the 
requirements of section 112(e)(1), as the 
case may be, if the sound recording were 
fixed on or after February 15, 1972; and 
‘‘(ii) except in the case of trans-
missions that would have been exempt 
under section 114(d)(1), the transmitting 
entity, before the end of the 270-day pe-
riod beginning on the date of the enact-
ment of this section, pays statutory royal-
ties and provides notice of the use of the 
relevant sound recordings in the same 
manner as is required by regulations 
adopted by the Copyright Royalty Judges 
for sound recordings that are protected 
under this title for all the digital audio 
VerDate Sep 11 2014 
01:21 Apr 11, 2018
Jkt 079200
PO 00000
Frm 00137
Fmt 6652
Sfmt 6201
E:\BILLS\H5447.IH
H5447
lotter on DSKBCFDHB2PROD with BILLS