116 
‘‘(13) INTERACTIVE STREAM.—The term ‘inter-
active stream’ means a digital transmission of a 
sound recording of a musical work in the form of a 
stream, where the performance of the sound record-
ing by means of such transmission is not exempt 
under section 114(d)(1) and does not in itself, or as 
a result of a program in which it is included, qualify 
for statutory licensing under section 114(d)(2). An 
interactive stream is a digital phonorecord delivery. 
‘‘(14) INTERESTED.—The term ‘interested’, as 
applied to a party seeking to participate in a pro-
ceeding under subsection (d)(7)(D), is a party as to 
which the Copyright Royalty Judges have not deter-
mined that the party lacks a significant interest in 
such proceeding. 
‘‘(15) LICENSE AVAILABILITY DATE.—The term 
‘license availability date’ means the next January 1 
following the expiration of the two-year period begin-
ning on the enactment date. 
‘‘(16) LIMITED DOWNLOAD.—The term ‘limited 
download’ means a digital transmission of a sound 
recording of a musical work in the form of a 
download, where such sound recording is accessible 
for listening only for a limited amount of time or 
specified number of times. 
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117 
‘‘(17) MATCHED.—The term ‘matched’, as ap-
plied to a musical work (or share thereof), means 
that the copyright owner of such work (or share 
thereof) has been identified and located. 
‘‘(18) MECHANICAL LICENSING COLLECTIVE.— 
The term ‘mechanical licensing collective’ means the 
entity most recently designated as such by the Reg-
ister of Copyrights under subsection (d)(3). 
‘‘(19) MECHANICAL
LICENSING
COLLECTIVE 
BUDGET.—The term ‘mechanical licensing collective 
budget’ means a statement of the financial position 
of the mechanical licensing collective for a fiscal year 
or quarter thereof based on estimates of expendi-
tures during the period and proposals for financing 
them, including a calculation of the collective total 
costs. 
‘‘(20) MUSICAL WORKS DATABASE.—The term 
‘musical works database’ means the database de-
scribed in subsection (d)(3)(E). 
‘‘(21) 
NONPROFIT.—The 
term 
‘nonprofit’ 
means a nonprofit created or organized in a State. 
‘‘(22) NOTICE OF LICENSE.—The term ‘notice 
of license’ means a notice from a digital music pro-
vider provided under subsection (d)(2)(A) for pur-
poses of obtaining a blanket license. 
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118 
‘‘(23) NOTICE
OF
NONBLANKET
ACTIVITY.— 
The term ‘notice of nonblanket activity’ means a no-
tice from a significant nonblanket licensee provided 
under subsection (d)(6)(A) for purposes of notifying 
the mechanical licensing collective that the licensee 
has been engaging in covered activities. 
‘‘(24) PERMANENT
DOWNLOAD.—The term 
‘permanent download’ means a digital transmission 
of a sound recording of a musical work in the form 
of a download, where such sound recording is acces-
sible for listening without restriction as to the 
amount of time or number of times it may be 
accessed. 
‘‘(25) QUALIFIED AUDITOR.—The term ‘quali-
fied auditor’ means an independent, certified public 
accountant with experience performing music royalty 
audits. 
‘‘(26) RECORD
COMPANY.—The term ‘record 
company’ means an entity that invests in, produces, 
and markets sound recordings of musical works, and 
distributes such sound recordings for remuneration 
through multiple sales channels, including a cor-
porate affiliate of such an entity engaged in distribu-
tion of sound recordings. 
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‘‘(27) REPORT OF USAGE.—The term ‘report of 
usage’ means a report reflecting an entity’s usage of 
musical works in covered activities described in sub-
section (d)(4)(A). 
‘‘(28) REQUIRED
MATCHING
EFFORTS.—The 
term ‘required matching efforts’ means efforts to 
identify and locate copyright owners of musical 
works as described in subsection (d)(10)(B)(i). 
‘‘(29) SERVICE.—The term ‘service’, as used in 
relation to covered activities, means any site, facility, 
or offering by or through which sound recordings of 
musical works are digitally transmitted to members 
of the public. 
‘‘(30) SHARE.—The term ‘share’, as applied to 
a musical work, means a fractional ownership inter-
est in such work. 
‘‘(31) SIGNIFICANT NONBLANKET LICENSEE.— 
The term ‘significant nonblanket licensee’— 
‘‘(A) means an entity, including a group of 
entities under common ownership or control 
that, acting under the authority of one or more 
voluntary licenses or individual download li-
censes, offers a service engaged in covered ac-
tivities, and such entity or group of entities— 
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‘‘(i) is not currently operating under a 
blanket license and is not obligated to pro-
vide reports of usage reflecting covered ac-
tivities under subsection (d)(4)(A); 
‘‘(ii) has a direct contractual, sub-
scription, or other economic relationship 
with end users of the service or, if no such 
relationship with end users exists, exercises 
direct control over the provision of the 
service to end users; and 
‘‘(iii) either— 
‘‘(I) on any day in a calendar 
month, makes more than 5,000 dif-
ferent sound recordings of musical 
works available through such service; 
or 
‘‘(II) derives revenue or other 
consideration in connection with such 
covered 
activities 
greater 
than 
$50,000 in a calendar month, or total 
revenue or other consideration greater 
than $500,000 during the preceding 
12 calendar months; and 
‘‘(B) does not include— 
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