Page:Hatch-Goodlatte Act.pdf/29

Rh :::“(i) —A digital music provider shall be in default under a blanket license if the digital music provider—
 * “(I) fails to provide 1 or more monthly reports of usage to the mechanical licensing collective when due;
 * “(II) fails to make a monthly royalty or late fee payment to the mechanical licensing collective when due, in all or material part;
 * “(III) provides 1 or more monthly reports of usage to the mechanical licensing collective that, on the whole, is or are materially deficient as a result of inaccurate, missing, or unreadable data, where the correct data was available to the digital music provider and required to be reported under this section and applicable regulations;
 * “(IV) fails to pay the administrative assessment as required under this subsection and applicable regulations; or
 * “(V) after being provided written notice by the mechanical licensing collective, refuses to comply with any other material term or condition of the blanket license under this section for a period of not less than 60 calendar days.
 * “(ii) —In case of a default by a digital music provider, the mechanical licensing collective may proceed to terminate the blanket license of the digital music provider as follows:
 * “(I) The mechanical licensing collective shall provide written notice to the digital music provider describing with reasonable particularity the default and advising that unless such default is cured not later than 60 calendar days after the date of the notice, the blanket license will automatically terminate at the end of that period.
 * “(II) If the digital music provider fails to remedy the default before the end of the 60-day period described in subclause (I), the license shall terminate without any further action on the part of the mechanical licensing collective. Such termination renders the making of all digital phonorecord deliveries of all musical works (and shares thereof) covered by the blanket license for which the royalty or administrative assessment has not been paid actionable as acts of infringement under section 501 and subject to the remedies provided by sections 502 through 506.
 * “(iii) —The mechanical licensing collective shall provide written notice of any termination under this subparagraph to copyright owners of affected works.
 * “(iv) —A digital music provider that believes a blanket license was improperly terminated by the mechanical licensing collective may seek review of such termination in an appropriate district court of the United States. The