§ 1004. — Royalty payments.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 17USC1004]
TITLE 17--COPYRIGHTS
CHAPTER 10--DIGITAL AUDIO RECORDING DEVICES AND MEDIA
SUBCHAPTER C--ROYALTY PAYMENTS
Sec. 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, Sec. 2, Oct. 28, 1992, 106 Stat. 4241; amended
Pub. L. 103-198, Sec. 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.
