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cordings to the musical works the sound 
recordings embody; and 
‘‘(B) does not include any added costs in-
curred by the mechanical licensing collective to 
provide services under voluntary licenses. 
‘‘(7) COVERED ACTIVITY.—The term ‘covered 
activity’ means the activity of making a digital pho-
norecord delivery of a musical work, including in the 
form of a permanent download, limited download, or 
interactive stream, where such activity qualified for 
a compulsory license under this section. 
‘‘(8) DIGITAL
MUSIC
PROVIDER.—The term 
‘digital music provider’ means a person (or persons 
operating under the authority of that person) that, 
with respect to a service engaged in covered activi-
ties— 
‘‘(A) has a direct contractual, subscription, 
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; 
‘‘(B) is able to fully report on any revenues 
and consideration generated by the service; and 
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‘‘(C) is able to fully report on usage of 
sound recordings of musical works by the serv-
ice (or procure such reporting). 
‘‘(9) DIGITAL
LICENSEE
COORDINATOR.—The 
term ‘digital licensee coordinator’ means the entity 
most recently designated pursuant to subsection 
(d)(5). 
‘‘(10) DIGITAL PHONORECORD DELIVERY.—The 
term ‘digital phonorecord delivery’ means each indi-
vidual delivery of a phonorecord by digital trans-
mission of a sound recording that results in a spe-
cifically identifiable reproduction by or for any 
transmission recipient of a phonorecord of that 
sound recording, regardless of whether the digital 
transmission is also a public performance of the 
sound recording or any musical work embodied 
therein, and includes a permanent download, a lim-
ited download, or an interactive stream. A digital 
phonorecord delivery does not result from a real- 
time, noninteractive subscription transmission of a 
sound recording where no reproduction of the sound 
recording or the musical work embodied therein is 
made from the inception of the transmission through 
to its receipt by the transmission recipient in order 
to make the sound recording audible. A digital pho-
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norecord delivery does not include the digital trans-
mission of sounds accompanying a motion picture or 
other audiovisual work as defined in section 101 of 
this title. 
‘‘(11) ENACTMENT
DATE.—The term ‘enact-
ment date’ means the date of the enactment of the 
Musical Works Modernization Act. 
‘‘(12) INDIVIDUAL DOWNLOAD LICENSE.—The 
term ‘individual download license’ means a compul-
sory license obtained by a record company to make 
and distribute, or authorize the making and distribu-
tion of, permanent downloads embodying a specific 
individual musical work. 
‘‘(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 
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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 2-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. 
‘‘(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 
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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. 
‘‘(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 
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