Copyright Issues in Online Music Delivery

Publication Date: June 2002

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Law and ethics

Type:

Abstract:

Early in the 107th Congress, both the House and Senate Judiciary Committees held hearings on online music. The Committees' goals were to obtain information about the interaction of technology and business surrounding the development of online music services.

The multiplicity of licensing requirements led several online services to call for simplified music licensing on the Internet through "compulsory licensing." When the law creates a compulsory license, parties thereto need not negotiate its availability or terms. When statutory requirements are satisfied, the license is available at statutory rates.

Although there are several types of "compulsory" or "statutory" licenses created by the U.S. copyright laws, 17 U.S.C. § 101 et seq., there are not, at this time, any legislative proposals to create a general compulsory license for transmission of music over the Internet.

Two relatively recent laws, however, the Digital Performance Right in Sound Recordings Act (DPRA), which was amended by the Digital Millennium Copyright Act (DMCA), presently control several aspects of compulsory licensing necessary for digital music transmission. 17 U.S.C. § 114 establishes statutory licenses for the public performance of qualified digital audio transmissions. 17 U.S.C. § 112 establishes a statutory license for ephemeral copies of digital transmissions. 17 U.S.C. § 115 creates a compulsory license, referred to as a "mechanical" license, for reproductions of songs and digital phonorecord deliveries over the Internet. Implementation of these provisions is difficult, and often contentious, given their complexity and the challenge of applying them to new and evolving technologies and businesses.

This report gives a brief overview of the basic elements of music licensing and surveys recent developments in the U.S. Copyright Office's implementation of the DMCA. It notes the Copyright Office's DMCA § 104 Report and its interpretation of compulsory licensing provisions under 17 U.S.C. §§ 114, 112, and 115. It reviews preliminary and final rulemaking decisions concerning webcasting, including statutory royalty rates, notice and record keeping requirements, interactive services, and digital phonorecord deliveries. Finally, it surveys legislation focusing on online music introduced in the 107th Congress.