lieu of any compulsory license under this section 
that applied to such digital phonorecord deliveries 
and hybrid offerings before the enactment of the 
Section 115 Reform Act of 2006.’’. 
SEC. 103. PERFORMANCE RIGHT PRESERVED. 
Section 115 of title 17, United States Code, is 
amended by adding at the end the following new sub-
section: 
‘‘(f) 
PERFORMANCE
RIGHT
PRESERVED.—The 
rights, exemptions, and licenses granted under, and the 
definitions contained in, subsection (e) shall not include, 
limit, or otherwise affect any right of public performance 
of a musical work. The third sentence of subsection 
(e)(9)(E)(iv) and the definitions contained in paragraph 
(14) of subsection (e) shall not be taken into account in 
any administrative, judicial, or other governmental pro-
ceeding to set or adjust the royalties payable to copyright 
owners of musical works for, the right of public perform-
ance of their works.’’. 
SEC. 104. INTERIM RATE PROCESS. 
Section 115(c) of title 17, United States Code, is 
amended by adding at the end the following new para-
graph: 
‘‘(7) INTERIM RATES.— 
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‘‘(A) IN GENERAL.—For any new type of 
phonorecord configuration for which a license is 
available under this section (other than an ac-
tivity for which a license is available under sub-
section (e)) for which a rate and terms have not 
been determined, any person shall, upon serving 
notice in accordance with subsection (b)(1), 
have a license to make and distribute such 
phonorecords, subject to subparagraph (B). 
‘‘(B) INTERIM RATES.—Upon serving no-
tice as described in subparagraph (A) with re-
spect to a phonorecord configuration— 
‘‘(i) the parties may negotiate an in-
terim rate and terms that will apply to the 
configuration under the license; or 
‘‘(ii) either party or both parties may 
apply to the Copyright Royalty Judges for 
an interim rate and terms, in which case— 
‘‘(I) 
the 
Copyright 
Royalty 
Judges shall, not later than 15 days 
after the application is made, publish 
notice of an expedited proceeding to 
determine the interim rate and terms; 
and 
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‘‘(II) the Judges shall conduct 
the expedited proceeding and deter-
mine the interim rate and terms not 
less than 30 days and not more than 
60 days after publishing the notice. 
‘‘(C) 
APPLICABILITY
OF
INTERIM 
RATES.—(i) Interim rates and terms negotiated 
under subparagraph (B)(i) or established under 
subparagraph (B)(ii) shall be retroactive to the 
inception of the activity under the license con-
cerned and shall apply until a rate and terms 
for the phonorecord configuration are deter-
mined under paragraph (3)(C) and chapter 8, 
or as otherwise agreed by the parties. 
‘‘(ii) Interim rates and terms described in 
subparagraph (B) with respect to a configura-
tion shall not be treated as precedent in a final 
ratemaking proceeding. If the Copyright Roy-
alty Judges have established an interim rate 
and terms under subparagraph (B)(ii), that 
rate and those terms shall apply to the same 
activity engaged in by any person, except as 
otherwise agreed to by the parties. 
‘‘(D) SINGLE PROCEEDING FOR EACH AC-
TIVITY.—Unless the Copyright Royalty Judges 
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determine that there is good cause to review an 
interim rate or terms established under sub-
paragraph 
(B)(ii), 
the 
Copyright 
Royalty 
Judges may conduct only 1 proceeding to deter-
mine an interim rate and terms for a configura-
tion for which a license is available under this 
subsection. 
‘‘(E) ADJUSTMENT OF INTERIM RATES.— 
After a final determination of rates and terms 
that will apply to a configuration for which a li-
cense is available under this subsection has 
been made under paragraph (3)(C) and chapter 
8, the final rate and terms shall be retroactive 
to the inception of the making and distribution 
of phonorecords under all licenses to which such 
rate and terms apply, unless an agreement be-
tween the parties to a license provides other-
wise. Not later than 60 days after the deter-
mination of the final rate and terms becomes 
effective— 
‘‘(i) the licensee shall pay to the copy-
right owner any amounts due from under-
payment of fees by the licensee because the 
final rate exceeds the interim rate; or 
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