Page:Copyright Law Revision (Senate Report No. 94-473).djvu/98

 : machine that merely provides continuous music without affording any choice as to the specific composition to be played at a particular time, or a case where selections are made by someone other than patrons of the establishment, would be outside the scope of the definition.

While this section of the legislation has traditionally referred to a “coin-operated phonorecord player,” it would also apply to similar machines operated by currency or tokens.

Clause 2 of section 116(a) provides that a jukebox operator may obtain a compulsory license to perform copyrighted works by complying with the requirements of this section.

Procedures

Section 116(b)(1) sets forth the requirements that an operator must observe in order to obtain a compulsory license. The operator is required to file in the Copyright Office an application containing certain information and deposit with the Register of Copyrights a $8 royalty fee for each box. If performances on a particular box are made for the first time after July 1, the royalty fee for the remainder of that year shall be $4.00.

The Register of Copyrights is required to issue to the applicant a certificate for each machine and the operator is required to affix the certificate to the particular box. Failure to observe these requirements renders the public performance an act of infringement and fully liable for the statutory remedies.

Distribution of royalties

Section 116(c) establishes the procedures for the distribution of the royalties paid by jukebox operators. During the month of January each person who believes he is entitled to share in the royalties shall file a claim with the Register of Copyrights. After the first of October the Register shall determine whether there exists a controversy concerning the distribution of the royalty fees. If he determines that there is no controversy, he shall, after deducting his reasonable administrative costs, distribute the fees to the respective claimants. If he determines that there is a controversy concerning the distribution of royalty fees, he shall proceed to establish a panel of the Copyright Royalty Tribunal as provided in Chapter 8.

Section 116(c)(3) enumerates the formula for the distribution of royalty fees. With respect to the fees allocated to owners of copyright in non-dramatic musical works, every copyright owner not affiliated with a performing rights society shall receive his pro rata share and the balance shall be allocated to be distributed in pro rata shares. The Register of Copyrights is authorized to withhold an amount sufficient to satisfy all claims with respect to which a controversy exists, but shall have discretion to proceed to distribute any amounts that are not in controversy.

Section 116(c)(4) directs the Register of Copyrights to promulgate regulations whereby those persons who can reasonably be expected to have claims may, without expense or harassment of jukebox operators or the proprietors of establishments in which jukeboxes are located, have access to such establishments and to the boxes, to obtain information that may be reasonably necessary to determine the