Copyrights - 17 USC Section 116

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01/19/04

Sec. 116. Negotiated licenses for public performances by means of
coin-operated phonorecord players

(a) Applicability of Section. - This section applies to any
nondramatic musical work embodied in a phonorecord.
(b) Negotiated Licenses. -
(1) Authority for negotiations. - Any owners of copyright in
works to which this section applies and any operators of
coin-operated phonorecord players may negotiate and agree upon
the terms and rates of royalty payments for the performance of
such works and the proportionate division of fees paid among
copyright owners, and may designate common agents to negotiate,
agree to, pay, or receive such royalty payments.
(2) Arbitration. - Parties not subject to such a negotiation
may determine, by arbitration in accordance with the provisions
of chapter 8, the terms and rates and the division of fees
described in paragraph (1).
(c) License Agreements Superior to Copyright Arbitration Royalty
Panel Determinations. - License agreements between one or more
copyright owners and one or more operators of coin-operated
phonorecord players, which are negotiated in accordance with
subsection (b), shall be given effect in lieu of any otherwise
applicable determination by a copyright arbitration royalty panel.
(d) Definitions. - As used in this section, the following terms
mean the following:
(1) A "coin-operated phonorecord player" is a machine or device
that -
(A) is employed solely for the performance of nondramatic
musical works by means of phonorecords upon being activated by
the insertion of coins, currency, tokens, or other monetary
units or their equivalent;
(B) is located in an establishment making no direct or
indirect charge for admission;
(C) is accompanied by a list which is comprised of the titles
of all the musical works available for performance on it, and
is affixed to the phonorecord player or posted in the
establishment in a prominent position where it can be readily
examined by the public; and
(D) affords a choice of works available for performance and
permits the choice to be made by the patrons of the
establishment in which it is located.
(2) An "operator" is any person who, alone or jointly with
others -
(A) owns a coin-operated phonorecord player;
(B) has the power to make a coin-operated phonorecord player
available for placement in an establishment for purposes of
public performance; or
(C) has the power to exercise primary control over the
selection of the musical works made available for public
performance on a coin-operated phonorecord player.

PRIOR PROVISIONS
A prior section 116, Pub. L. 94-553, title I, Sec. 101, Oct. 19,
1976, 90 Stat. 2562; Pub. L. 100-568, Sec. 4(b)(1), Oct. 31, 1988,
102 Stat. 2857, related to scope of exclusive rights in nondramatic
musical works and compulsory licenses for public performances by
means of coin-operated phonorecord players, prior to repeal by Pub.
L. 103-198, Sec. 3(a), Dec. 17, 1993, 107 Stat. 2309.
AMENDMENTS
1997 - Subsec. (b)(2). Pub. L. 105-80, Sec. 5(1), amended par.
(2) generally. Prior to amendment, par. (2) read as follows:
"(2) Arbitration. - Parties to such a negotiation, within such
time as may be specified by the Librarian of Congress by
regulation, may determine the result of the negotiation by
arbitration. Such arbitration shall be governed by the provisions
of title 9, to the extent such title is not inconsistent with this
section. The parties shall give notice to the Librarian of Congress
of any determination reached by arbitration and any such
determination shall, as between the parties to the arbitration, be
dispositive of the issues to which it relates."
Subsec. (d). Pub. L. 105-80, Sec. 5(2), added subsec. (d).
1993 - Pub. L. 103-198, Sec. 3(b)(1)(A), renumbered section 116A
of this title as this section.
Subsec. (b). Pub. L. 103-198, Sec. 3(b)(1)(B), (C), redesignated
subsec. (c) as (b), substituted "Librarian of Congress" for
"Copyright Royalty Tribunal" in two places in par. (2), and struck
out former subsec. (b) which related to limitation on exclusive
right if licenses not negotiated.
Subsec. (c). Pub. L. 103-198, Sec. 3(b)(1)(B), (D), redesignated
subsec. (d) as (c), in heading substituted "Arbitration Royalty
Panel" for "Royalty Tribunal", and in text substituted "subsection
(b)" for "subsection (c)" and "a copyright arbitration royalty
panel" for "the Copyright Royalty Tribunal".
Subsecs. (d) to (g). Pub. L. 103-198, Sec. 3(b)(1)(B), (E),
redesignated subsec. (d) as (c) and struck out subsecs. (e) to (g)
which provided, in subsec. (e), for a schedule for negotiation of
licenses, in subsec. (f), for a suspension of various ratemaking
activities by the Copyright Royalty Tribunal, and in subsec. (g),
for transition provisions and retention of Copyright Royalty
Tribunal jurisdiction.
EFFECTIVE DATE
Section effective Mar. 1, 1989, with any cause of action arising
under this title before such date being governed by provisions as
in effect when cause of action arose, see section 13 of Pub. L.
100-568, set out as an Effective Date of 1988 Amendment note under
section 101 of this title.

Last modified: April 20, 2006

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Copyrights - 17 USC Section 116

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