
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mrs. FEINSTEIN (for herself, Mr. GRAHAM, Mr. BIDEN, and Mr. ALEXANDER):
S. 256. A bill to harmonize rate setting standards for copyright licenses under section
112 and 114 of title 17, United States Code, and for other purposes; to the Committee on the
Judiciary.
Mrs. FEINSTEIN. Mr. President, today I am pleased to introduce the Platform Equality and
Remedies for Rights-holders in Music Act along with Senators GRAHAM, BIDEN, and ALEXANDER.
The need to protect creative works has been an important principle recognized in our
First, the bill I am introducing today, the PERFORM Act, would create rate parity. All
companies covered by the government license created in section 114 of title 17 would be required to
pay a "fair market value" for use of music libraries rather than having different rate
standards apply based on what medium is being used to transmit the music.
The bill would also establish content protection. All companies would be required to use
reasonably available, technologically feasible, and economically reasonable means to
prevent music theft. In addition, a company may not provide a recording device to a customer that
would allow him or her to create their own personalized music library that can be manipulated
and maintained without paying a reproduction royalty.
This does not mean such devices cannot be made or distributed. It simply means that the
business must negotiate the payment for the music outside of the statutory license.
The bill also contains language to make sure that consumers' current recording habits are
not inhibited. Therefore, any recording the consumer chooses to do manually will still be
allowed.
In addition, if the device allows the consumer to manipulate music by program, channel,
or time period that would still be permitted under the statutory license.
For example, if a listener chooses to automatically record a news station every morning
at 9:00 a.m.; a jazz station every afternoon at 2:00 p.m., a blues station every Friday at 3:00
p.m., and a talk radio show every Saturday at 4:00 p.m., that would be allowable. In addition,
that listener could then use their recording device to move these programs so that each
program of the same genre would be back to back.
What a listener cannot do is set a recording device to find all the Frank Sinatra songs
being played on the radio service and only record those songs. By making these distinctions
this bill supports new business models and technologies without harming the songwriters and
performers in the process.
Unfortunately, this bill was unable to move last Congress primarily because of
misinformation about what the bill does and does not do.
However, there were also some questions that were raised, not about problems with the
bill, but about ways to expand its reach. For example, currently the bill does not apply to
traditional radio distributed by the broadcasters. This legislation only covers businesses that are
under the section 114 license: Internet, cable, and satellite. Yet, some of my Republican
colleagues argued that the bill should apply the same recording limitations to over-the-air
broadcasters as
are applied to Internet, cable, and satellite. While this change has not been made in the
version of the bill I am introducing today, I believe it is an issue we should look at in
the
110th Congress.
Also, the bill as introduced does not address the other conditions applied to Internet,
cable,
and satellite services in order for them to get the benefit of the statutory license. The
one
that I am most concerned with is interactivity.
I think there is real confusion about what is and what is not allowed under the current
statute: how much personalization and customization may these new services offer?
Currently, licensing rates are higher for interactive services. However, there are clear
disagreements as to what constitutes an "interactive" service. I tried to have the
parties meet
to negotiate a solution to this issue so that we could include new language in this bill;
however, the parties were so far apart that a solution could not be reached.
Despite this, I still believe this is an important issue that must be addressed. As
introduced,
the bill calls for the Copyright Office to make recommendations to Congress, but I am
hopeful
that through the process of moving this bill through the Senate we can develop a solution
sooner
rather than rely on a study.
Finally, some have raised concerns that applying content protection to all providers is
unfair.
They argue that if there is no connection between the distributor of the music and the
technology provider that allows for copying and manipulating of performances then they
should
not be required to protect the music that they broadcast. In general, I do not agree. We
know
that there are websites out there now that provide so-called stream-ripping services that
allow
an individual to steal music off an Internet webcast.
It is not enough to turn a blind eye to this type of piracy and do nothing simply because
there
is no formal connection between the businesses. At the same time, I am sympathetic to the
concerns that if the type of technology a company uses is inadequate or ineffective,
through no
fault of their own, they should not be saddled with huge mandatory penalties.
I am interested in looking at this issue more closely to see if there is some way to
address
this concern and find a compromise solution.
To be clear, I see this as the beginning of the process. I think this legislation is a
good step
forward in addressing a real problem that is occurring in the music industry. Changes or
additions may be necessary as the bill moves forward, but I believe to wait and do
nothing does
a disservice to all involved.
Music is an invaluable part of all of our lives. The new technologies and changing
delivery
systems provide exciting new options for all consumers. As we continue to move forward
into new
frontiers we must ensure that our laws can stand the test of time.
I look forward to working with my colleagues to pass this legislation.
I ask unanimous consent that the text of the bill be printed in the RECORD.
There being no objection, the text of the bill was ordered to be printed in the RECORD, as
follows:
S.256
Be it enacted by the Senate and House of Representatives of the United States of America
in
Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the "Platform Equality and Remedies for Rights Holders in Music
Act of
2007" or the "Perform Act of 2007".
SEC. 2. RATE SETTING STANDARDS.
(a) SECTION 112 LICENSES.-Section 112(e)(4) of title 17, United States Code, is amended
in the
third sentence by striking "fees that would have been negotiated in the marketplace
between a
willing buyer and a willing seller" and inserting "the fair market value of the rights
licensed
under this subsection".
(b) SECTION 114 LICENSES.-Section 114(f) of title 17, United States Code, is amended -
(1) by striking paragraph (1);
(2) by redesignating paragraphs (2), (3), (4), and (5) as paragraphs (1), (2), (3), and
(4),
respectively; and
(3) in paragraph (1) (as redesignated under this subsection) -
(A) in subparagraph (A), by striking all after "Proceedings" and inserting "under chapter
8
shall determine reasonable rates and terms of royalty payments for transmissions during
5-year
periods beginning on January 1 of the second year following the year in which the
proceedings
are to be commenced, except where a different transitional period is provided under
section
6(b)(3) of the Copyright Royalty and Distribution Reform Act of 2004, or such other
period as
the parties may agree.";
(B) in subparagraph (B) -
(i) in the first sentence, by striking "affected by this paragraph" and inserting
"under
this section";
(ii) in the second sentence, by striking "eligible nonsubscription transmission"; and
(iii) in the third sentence -
(I) by striking "eligible nonsubscription services and new subscription"; and
(II) by striking "rates and terms that would have been negotiated in the marketplace
between a
willing buyer and a willing seller" and inserting "the fair market value of the rights
licensed
under this section";
(iv) in the fourth sentence, by striking "base its" and inserting "base their";
(v) in clause (i), by striking "and" after the semicolon;
(vi) in clause (ii), by striking the period and inserting "; and";
(vii) by inserting after clause (ii) the following:
"(iii) the degree to which reasonable recording affects the potential market for sound
recordings, and the additional fees that are required to be paid by services for
compensation.";
and
(viii) in the matter following clause (ii), by striking "described in subparagraph (A)";
and
(C) by striking subparagraph (C) and inserting the following:
"(C) The procedures under subparagraphs (A) and (B) shall also be initiated pursuant to
a
petition filed by any copyright owners of sound recordings or any transmitting entity
indicating
that a new type of service on which sound recordings are performed is or is about to
become
operational, for the purpose of determining reasonable terms and rates of royalty
payments with
respect to such new type of service for the period beginning with the inception of such
new type
of service and ending on the date on which the royalty rates and terms for preexisting
subscription digital audio transmission services, eligible nonsubscription services, or
new
subscription services, as the case may be, most recently determined under subparagraph
(A) or
(B) and chapter 8 expire, or such other period as the parties may agree.".
(c) CONTENT PROTECTION.- Section 114(d)(2) of title 17, United States Code, is amended -
(1) in subparagraph (A)-
(A) in clause (ii), by striking "and" after the semicolon;
(B) in clause (iii), by adding "and" after the semicolon; and
(C) by adding after clause (iii) the following:
"(iv) the transmitting entity takes no affirmative steps to authorize, enable, cause or
Induce
the making of a copy or phonorecord by or for the transmission recipient and uses
technology
that is reasonably available, technologically feasible, and economically reasonable to
prevent
the making of copies or phonorecords embodying the transmission in whole or in part,
except for
reasonable recording as defined in this subsection;";
(2) in subparagraph (C) -
(A) by striking clause (vi); and
(B) by redesignating clauses (vii) through (ix) as clauses (vi) through (viii),
respectively; and
(3) by adding at the end the following:
"For purposes of subparagraph (A)(iv), the mere offering of a transmission and
accompanying metadata does not in itself authorize, enable, cause, or induce the making of a
phonorecord.
Nothing shall preclude or prevent a performing rights society or a mechanical rights
organization, or any entity owned in whole or in part by, or acting on behalf of, such
organizations or entities, from monitoring public performances or other uses of
copyrighted works contained in such transmissions. Any such organization or entity shall be granted a
license on either a gratuitous basis or for a de minimus fee to cover only the reasonable
costs to the licensor of providing the license, and on reasonable, nondiscriminatory terms, to
access and retransmit as necessary any content contained in such transmissions protected by
content protection or similar technologies, if such licenses are for purposes of carrying out the
activities of such organizations or entities in monitoring the public performance or
other uses of copyrighted works, and such organizations or entities employ reasonable methods to
protect any such content accessed from further distribution.".
(d) DEFINITION.-Section 114(j) of title 17, United States Code, is amended -
(1) by redesignating paragraphs (10) through (15) as paragraphs (11) through (16),
respectively; and
(2) by inserting after paragraph (9) the following:
"(10)(A) A 'reasonable recording' means the making of a phonorecord embodying all or part
of a performance licensed under this section for private, noncommercial use where technological
measures used by the transmitting entity, and which are incorporated into a recording
device -
"(i) permit automated recording or playback based on specific programs, time periods, or
channels as selected by or for the user;
"(ii) do not permit automated recording or playback based on specific sound recordings,
albums, or artists;
"(iii) do not permit the separation of component segments of the copyrighted material
contained in the transmission program which results in the playback of a manipulated sequence; and
"(iv) do not permit the redistribution, transmission or other exporting of a phonorecord
embodying all or part of a performance licensed under this section from the device by
digital outputs or removable media unless the destination device is part of a secure in-home
network that also complies with each of the requirements prescribed in this paragraph.
"(B) Nothing in this paragraph shall prevent a consumer from engaging in non-automated
manual recording and playback in a manner that is not an infringement of copyright.".
(e) TECHNICAL AND CONFORMING AMENDMENTS. -
(1) SECTION 114.- Section 114(f) of title United States Code (as amended by subsection
(b) of this section), is further amended -
(A) in paragraph (1)(B), in the first sentence, by striking "paragraph (3)" and inserting
"paragraph (2)"; and
(B) in paragraph (4)(C), by striking "under paragraph (4)" and inserting "under paragraph
(3)".
(2) SECTION 8O4.-Section 804(b)(3)(C) of title 17, United States Code, is amended -
(A) in clause (i), by striking" 114(f)(2)(C)"; and
(B) in clause (iv), by striking 114(f)(2)(C), as the case may be".
SEC. 3. REGISTER OF COPYRIGHTS MEETING AND REPORT.
(a) MEETING.- Not later than 90 days after the date of enactment of this Act, the
Register of Copyrights shall convene a meeting among affected parties to discuss whether to recommend
creating a new category of limited interactive services, including an appropriate premium
rate for such services, within the statutory license contained in section 114 of title 17,
United States Code.
(b) REPORT.- Not later than 90 days after the convening of the meeting under subsection
(a), the Register of Copyrights shall submit a report on the discussions at that meeting to the
Committee on the Judiciary of the Senate and the Committee on the Judiciary of the House of
Representatives.