U.S. Code, Title 17, Copyrights

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Author: "U.S. Congress, Office of the Law Revision Counsel"

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§ 1004. Royalty Payments

     (a) Digital Audio Recording Devices.—

     (1) Amount of payment.—The royalty payment due under section 1003 for each digital audio recording device imported into and distributed in the United States, or manufactured and distributed in the United States, shall be 2 percent of the transfer price. Only the first person to manufacture and distribute or import and distribute such device shall be required to pay the royalty with respect to such device.

     (2) Calculation for devices distributed with other devices.—With respect to a digital audio recording device first distributed in combination with one or more devices, either as a physically integrated unit or as separate components, the royalty payment shall be calculated as follows:

     (A) If the digital audio recording device and such other devices are part of a physically integrated unit, the royalty payment shall be based on the transfer price of the unit, but shall be reduced by any royalty payment made on any digital audio recording device included within the unit that was not first distributed in combination with the unit.

     (B) If the digital audio recording device is not part of a physically integrated unit and substantially similar devices have been distributed separately at any time during the preceding 4 calendar quarters, the royalty payment shall be based on the average transfer price of such devices during those 4 quarters.

     (C) If the digital audio recording device is not part of a physically integrated unit and substantially similar devices have not been distributed separately at any time during the preceding 4 calendar quarters, the royalty payment shall be based on a constructed price reflecting the proportional value of such device to the combination as a whole.

     (3) Limits on royalties.—Notwithstanding paragraph (1) or (2), the amount of the royalty payment for each digital audio recording device shall not be less than $1 nor more than the royalty maximum. The royalty maximum shall be $8 per device, except that in the case of a physically integrated unit containing more than 1 digital audio recording device, the royalty maximum for such unit shall be $12. During the 6th year after the effective date of this chapter, and not more than once each year thereafter, any interested copyright party may petition the Librarian of Congress to increase the royalty maximum and, if more than 20 percent of the royalty payments are at the relevant royalty maximum, the Librarian of Congress shall prospectively increase such royalty maximum with the goal of having no more than 10 percent of such payments at the new royalty maximum; however the amount of any such increase as a percentage of the royalty maximum shall in no event exceed the percentage increase in the Consumer Price Index during the period under review.

     (b) Digital Audio Recording Media.—The royalty payment due under section 1003 for each digital audio recording medium imported into and distributed in the United States, or manufactured and distributed in the United States, shall be 3 percent of the transfer price. Only the first person to manufacture and distribute or import and distribute such medium shall be required to pay the royalty with respect to such medium.

(Added Pub. L. 102–563, § 2, Oct. 28, 1992, 106 Stat. 4241; amended Pub. L. 103–198, § 6(b)(1), Dec. 17, 1993, 107 Stat. 2312.)

References in Text

     The effective date of this chapter, referred to in subsec. (a)(3), is Oct. 28, 1992. See Effective Date note set out under section 1001 of this title.

Amendments

     1993—Subsec. (a)(3). Pub. L. 103–198 substituted "Librarian of Congress" for "Copyright Royalty Tribunal" after "may petition the" and for "Tribunal" before "shall prospectively".

Section Referred to in Other Sections

     This section is referred to in sections 1003, 1009 of this title.

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Chicago: "U.S. Congress, Office of the Law Revision Counsel", "§ 1004. Royalty Payments," U.S. Code, Title 17, Copyrights in U.S. Code, Title 17, Copyrights (Washington, D.C.: Government Printing Office, 2002), Original Sources, accessed September 21, 2018, http://www.originalsources.com/Document.aspx?DocID=D39DKUGYM9IDWIY.

MLA: "U.S. Congress, Office of the Law Revision Counsel". "§ 1004. Royalty Payments." U.S. Code, Title 17, Copyrights, in U.S. Code, Title 17, Copyrights, Washington, D.C., Government Printing Office, 2002, Original Sources. 21 Sep. 2018. www.originalsources.com/Document.aspx?DocID=D39DKUGYM9IDWIY.

Harvard: "U.S. Congress, Office of the Law Revision Counsel", '§ 1004. Royalty Payments' in U.S. Code, Title 17, Copyrights. cited in 2002, U.S. Code, Title 17, Copyrights, Government Printing Office, Washington, D.C.. Original Sources, retrieved 21 September 2018, from http://www.originalsources.com/Document.aspx?DocID=D39DKUGYM9IDWIY.