(i) by striking the second sentence 
and inserting the following: ‘‘If the Copy-
right Royalty Judges determine that no 
such controversy exists, the Copyright Roy-
alty Judges shall authorize the Librarian 
of Congress to proceed to distribute such 
fees to the copyright owners entitled to re-
ceive them, or to their designated agents, 
subject to the deduction of reasonable ad-
ministrative costs under this section.’’; and 
(ii) in the last sentence, by striking 
‘‘finds’’ and inserting ‘‘find’’; and 
(B) by striking subparagraph (C) and in-
serting the following: 
‘‘(C) During the pendency of any pro-
ceeding under this subsection, the Copyright 
Royalty Judges shall have the discretion to au-
thorize the Librarian of Congress to proceed to 
distribute any amounts that are not in con-
troversy.’’. 
(b) SOUND RECORDINGS.—Section 114(f) of title 17, 
United States Code, is amended—
(1) in paragraph (1)(A), in the first sentence, 
by striking ‘‘except where’’ and all that follows 
through the end period and inserting ‘‘except in the
case of a different transitional period provided under 
section 6(b)(3) of the Copyright Royalty and Dis-
tribution Reform Act of 2004, or such other period 
as the parties may agree.’’; 
(2) by amending paragraph (2)(A) to read as 
follows: 
‘‘(2)(A) Proceedings under chapter 8 shall de-
termine reasonable rates and terms of royalty pay-
ments for public performances of sound recordings 
by means of eligible nonsubscription transmission 
services and new subscription services specified by 
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 commenced, ex-
cept in the case of a different transitional period 
provided under section 6(b)(3) of the Copyright Roy-
alty and Distribution Reform Act of 2004, or such 
other period as the parties may agree. Such rates 
and terms shall distinguish among the different 
types of eligible nonsubscription transmission serv-
ices and new subscription services then in operation 
and shall include a minimum fee for each such type 
of service. Any copyright owners of sound recordings 
or any entities performing sound recordings affected 
by this paragraph may submit to the Copyright Roy-
alty Judges licenses covering such eligible non-
subscription transmissions and new subscription 
services with respect to such sound recordings. The 
parties to each proceeding shall bear their own 
costs.’’; and 
(3) in paragraph (2)(B), in the last sentence, 
by striking ‘‘negotiated under’’ and inserting ‘‘de-
scribed in’’. 
(c) PHONORECORDS
OF NONDRAMATIC MUSICAL 
WORKS.—Section 115(c)(3) of title 17, United States 
Code, is amended—
(1) in subparagraph (B), by striking ‘‘subpara-
graphs (B) through (F)’’ and inserting ‘‘this sub-
paragraph and subparagraphs (C) through (E)’’; 
(2) in subparagraph (D), in the third sentence, 
by inserting ‘‘in subparagraphs (B) and (C)’’ after 
‘‘described’’; and 
(3) in subparagraph (E), in clauses (i) and 
(ii)(I), by striking ‘‘(C) or (D)’’ each place it ap-
pears and inserting ‘‘(C) and (D)’’. 
(d) NONCOMMERCIAL BROADCASTING.—Section 118 
of title 17, United States Code, is amended—
(1) in subsection (b)(3), by striking ‘‘copyright 
owners in works’’ and inserting ‘‘owners of copyright 
in works’’; and