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se may be, first pays or offers to pay the reasonable royalty referred to in section 907(a)(2) to the mask work owner, on all such units imported or distributed, or both, after the date of the enactment of this chapter. (3) In the event that a person imports or distributes infringing semiconductor chip product units described in paragraph (2) of this subsection without first paying or offering to pay the reasonable royalty specified in such paragraph, or if the person refuses or fails to make such payment, the mask work owner shall be entitled to the relief provided in sections 910 and 911. -SOURCE- (Added Pub. L. 98-620, title III, Sec. 302, Nov. 8, 1984, 98 Stat. 3354.) -REFTEXT- REFERENCES IN TEXT The date of enactment of this chapter, referred to in text, is the date of enactment of Pub. L. 98-620, which was approved Nov. 8, 1984. -End- -CITE- 17 USC Sec. 914 01/19/04 -EXPCITE- TITLE 17 - COPYRIGHTS CHAPTER 9 - PROTECTION OF SEMICONDUCTOR CHIP PRODUCTS -HEAD- Sec. 914. International transitional provisions -STATUTE- (a) Notwithstanding the conditions set forth in subparagraphs (A) and (C) of section 902(a)(1) with respect to the availability of protection under this chapter to nationals, domiciliaries, and sovereign authorities of a foreign nation, the Secretary of Commerce may, upon the petition of any person, or upon the Secretary's own motion, issue an order extending protection under this chapter to such foreign nationals, domiciliaries, and sovereign authorities if the Secretary finds - (1) that the foreign nation is making good faith efforts and reasonable progress toward - (A) entering into a treaty described in section 902(a)(1)(A); or (B) enacting or implementing legislation that would be in compliance with subparagraph (A) or (B) of section 902(a)(2); and (2) that the nationals, domiciliaries, and sovereign authorities of the foreign nation, and persons controlled by them, are not engaged in the misappropriation, or unauthorized distribution or commercial exploitation, of mask works; and (3) that issuing the order would promote the purposes of this chapter and international comity with respect to the protection of mask works. (b) While an order under subsection (a) is in effect with respect to a foreign nation, no application for registration of a claim for protection in a mask work under this chapter may be denied solely because the owner of the mask work is a national, domiciliary, or sovereign authority of that foreign nation, or solely because the mask work was first commercially exploited in that foreign nation. (c) Any order issued by the Secretary of Commerce under subsection (a) shall be effective for such period as the Secretary designates in the order, except that no such order may be effective after the date on which the authority of the Secretary of Commerce terminates under subsection (e). The effective date of any such order shall also be designated in the order. In the case of an order issued upon the petition of a person, such effective date may be no earlier than the date on which the Secretary receives such petition. (d)(1) Any order issued under this section shall terminate if - (A) the Secretary of Commerce finds that any of the conditions set forth in paragraphs (1), (2), and (3) of subsection (a) no longer exist; or (B) mask works of nationals, domiciliaries, and sovereign authorities of that foreign nation or mask works first commercially exploited in that foreign nation become eligible for protection under subparagraph (A) or (C) of section 902(a)(1). (2) Upon the termination or expiration of an order issued under this section, registrations of claims of protection in mask works made pursuant to that order shall remain valid for the period specified in section 904. (e) The authority of the Secretary of Commerce under this section shall commence on the date of the enactment of this chapter, and shall terminate on July 1, 1995. (f)(1) The Secretary of Commerce shall promptly notify the Register of Copyrights and the Committees on the Judiciary of the Senate and the House of Representatives of the issuance or termination of any order under this section, together with a statement of the reasons for such action. The Secretary shall also publish such notification and statement of reasons in the Federal Register. (2) Two years after the date of the enactment of this chapter, the Secretary of Commerce, in consultation with the Register of Copyrights, shall transmit to the Committees on the Judiciary of the Senate and the House of Representatives a report on the actions taken under this section and on the current status of international recognition of mask work protection. The report shall include such recommendations for modifications of the protection accorded under this chapter to mask works owned by nationals, domiciliaries, or sovereign authorities of foreign nations as the Secretary, in consultation with the Register of Copyrights, considers would promote the purposes of this chapter and international comity with respect to mask work protection. Not later than July 1, 1994, the Secretary of Commerce, in consultation with the Register of Copyrights, shall transmit to the Committees on the Judiciary of the Senate and the House of Representatives a report updating the matters contained in the report transmitted under the preceding sentence. -SOURCE- (Added Pub. L. 98-620, title III, Sec. 302, Nov. 8, 1984, 98 Stat. 3355; amended Pub. L. 100-159, Secs. 2, 4, Nov. 9, 1987, 101 Stat. 899, 900; Pub. L. 102-64, Secs. 3, 4, June 28, 1991, 105 Stat. 320, 321.) -REFTEXT- REFERENCES IN TEXT The date of enactment of this chapter, referred to in subsecs. (e) and (f)(2), is the date of enactment of Pub. L. 98-620, which was approved Nov. 8, 1984. -MISC1- AMENDMENTS 1991 - Subsec. (a)(1)(B). Pub. L. 102-64, Sec. 3(1), inserted "or implementing" after "enacting". Subsec. (e). Pub. L. 102-64, Sec. 3(2), substituted "July 1, 1995" for "July 1, 1991". Subsec. (f)(2). Pub. L. 102-64, Sec. 4, substituted "July 1, 1994" for "July 1, 1990". 1987 - Subsec. (e). Pub. L. 100-159, Sec. 2, substituted "on July 1, 1991" for "three years after such date of enactment". Subsec. (f)(2). Pub. L. 100-159, Sec. 4, which directed the amendment of subsec. (f) by inserting at end "Not later than July 1, 1990, the Secretary of Commerce, in consultation with the Register of Copyrights, shall transmit to the Committees on the Judiciary of the Senate and the House of Representatives a report updating the matters contained in the report transmitted under the preceding sentence.", was executed by inserting new language at end of par. (2) of subsec. (f) as the probable intent of Congress. FINDINGS AND PURPOSES Section 2 of Pub. L. 102-64 provided that: "(a) Findings. - The Congress finds that - "(1) section 914 of title 17, United States Code, which authorizes the Secretary of Commerce to issue orders extending interim protection under chapter 9 of title 17, United States Code, to mask works fixed in semiconductor chip products and originating in foreign countries that are making good faith efforts and reasonable progress toward providing protection, by treaty or legislation, to mask works of United States nationals, has resulted in substantial and positive legislative developments in foreign countries regarding protection of mask works; "(2) the Secretary of Commerce has determined that most of the industrialized countries of the world are eligible for orders affording interim protection under section 914 of title 17, United States Code; "(3) no multilateral treaty recognizing the protection of mask works has come into force, nor has the United States become bound by any multilateral agreement regarding such protection; and "(4) bilateral and multilateral relationships regarding the protection of mask works should be directed toward the international protection of mask works in an effective, consistent, and harmonious manner, and the existing bilateral authority of the Secretary of Commerce under chapter 9 of title 17, United States Code, should be extended to facilitate the continued development of protection for mask works. "(b) Purposes. - The purposes of this Act [amending this section and enacting provisions set out as a note under section 901 of this title] are - "(1) to extend the period within which the Secretary of Commerce may grant interim protection orders under section 914 of title 17, United States Code, to continue the incentive for the bilateral and multilateral protection of mask works; and "(2) to clarify the Secretary's authority to issue such interim protection orders." Section 1 of Pub. L. 100-159, as amended by Pub. L. 105-80, Sec. 12(b)(1), Nov. 13, 1997, 111 Stat. 1536, provided that: "(a) Findings. - The Congress finds that - "(1) section 914 of title 17, United States Code, which authorizes the Secretary of Commerce to issue orders extending interim protection under chapter 9 of title 17, United States Code, to mask works fixed in semiconductor chip products and originating in foreign countries that are making good faith efforts and reasonable progress toward providing protection, by treaty or legislation, to mask works of United States nationals, has resulted in substantial and positive legislative developments in foreign countries regarding protection of mask works; "(2) the Secretary of Commerce has determined that most of the industrialized countries of the world are eligible for orders affording interim protection under section 914 of title 17, United States Code; "(3) the World Intellectual Property Organization has commenced meetings to draft an international convention regarding the protection of integrated electronic circuits; "(4) these bilateral and multilateral developments are encouraging steps toward improving international protection of mask works in a consistent and harmonious manner; and "(5) it is inherent in section 902 of title 17, United States Code, that the President has the authority to revise, suspend, or revoke, as well as issue, proclamations extending mask work protection to nationals, domiciliaries, and sovereign authorities of other countries, if conditions warrant. "(b) Purposes. - The purposes of this Act [amending this section and section 902 of this title] are - "(1) to extend the period within which the Secretary of Commerce may grant interim protective orders under section 914 of title 17, United States Code, to continue this incentive for the bilateral and multilateral protection of mask works; and "(2) to codify the President's existing authority to revoke, suspend, or limit the protection extended to mask works of foreign entities in nations that extend mask work protection to United States nationals." -End- -CITE- 17 USC CHAPTER 10 - DIGITAL AUDIO RECORDING DEVICES AND MEDIA 01/19/04 -EXPCITE- TITLE 17 - COPYRIGHTS CHAPTER 10 - DIGITAL AUDIO RECORDING DEVICES AND MEDIA -HEAD- CHAPTER 10 - DIGITAL AUDIO RECORDING DEVICES AND MEDIA -MISC1- SUBCHAPTER A - DEFINITIONS Sec. 1001. Definitions. SUBCHAPTER B - COPYING CONTROLS 1002. Incorporation of copying controls. SUBCHAPTER C - ROYALTY PAYMENTS 1003. Obligation to make royalty payments. 1004. Royalty payments. 1005. Deposit of royalty payments and deduction of expenses. 1006. Entitlement to royalty payments. 1007. Procedures for distributing royalty payments. SUBCHAPTER D - PROHIBITION ON CERTAIN INFRINGEMENT ACTIONS, REMEDIES, AND ARBITRATION 1008. Prohibition on certain infringement actions. 1009. Civil remedies. 1010. Arbitration of certain disputes. -SECREF- CHAPTER REFERRED TO IN OTHER SECTIONS This chapter is referred to in sections 802, 912 of this title. -End- -CITE- 17 USC SUBCHAPTER A - DEFINITIONS 01/19/04 -EXPCITE- TITLE 17 - COPYRIGHTS CHAPTER 10 - DIGITAL AUDIO RECORDING DEVICES AND MEDIA SUBCHAPTER A - DEFINITIONS -HEAD- SUBCHAPTER A - DEFINITIONS -End- -CITE- 17 USC Sec. 1001 01/19/04 -EXPCITE- TITLE 17 - COPYRIGHTS CHAPTER 10 - DIGITAL AUDIO RECORDING DEVICES AND MEDIA SUBCHAPTER A - DEFINITIONS -HEAD- Sec. 1001. Definitions -STATUTE- As used in this chapter, the following terms have the following meanings: (1) A "digital audio copied recording" is a reproduction in a digital recording format of a digital musical recording, whether that reproduction is made directly from another digital musical recording or indirectly from a transmission. (2) A "digital audio interface device" is any machine or device that is designed specifically to communicate digital audio information and related interface data to a digital audio recording device through a nonprofessional interface. (3) A "digital audio recording device" is any machine or device of a type commonly distributed to individuals for use by individuals, whether or not included with or as part of some other machine or device, the digital recording function of which is designed or marketed for the primary purpose of, and that is capable of, making a digital audio copied recording for private use, except for - (A) professional model products, and (B) dictation machines, answering machines, and other audio recording equipment that is designed and marketed primarily for the creation of sound recordings resulting from the fixation of nonmusical sounds. (4)(A) A "digital audio recording medium" is any material object in a form commonly distributed for use by individuals, that is primarily marketed or most commonly used by consumers for the purpose of making digital audio copied recordings by use of a digital audio recording device. (B) Such term does not include any material object - (i) that embodies a sound recording at the time it is first distributed by the importer or manufacturer; or (ii) that is primarily marketed and most commonly used by consumers either for the purpose of making copies of motion pictures or other audiovisual works or for the purpose of making copies of nonmusical literary works, including computer programs or data bases. (5)(A) A "digital musical recording" is a material object - (i) in which are fixed, in a digital recording format, only sounds, and material, statements, or instructions incidental to those fixed sounds, if any, and (ii) from which the sounds and material can be perceived, reproduced, or otherwise communicated, either directly or with the aid of a machine or device. (B) A "digital musical recording" does not include a material object - (i) in which the fixed sounds consist entirely of spoken word recordings, or (ii) in which one or more computer programs are fixed, except that a digital musical recording may contain statements or instructions constituting the fixed sounds and incidental material, and statements or instructions to be used directly or indirectly in order to bring about the perception, reproduction, or communication of the fixed sounds and incidental material. (C) For purposes of this paragraph - (i) a "spoken word recording" is a sound recording in which are fixed only a series of spoken words, except that the spoken words may be accompanied by incidental musical or other sounds, and (ii) the term "incidental" means related to and relatively minor by comparison. (6) "Distribute" means to sell, lease, or assign a product to consumers in the United States, or to sell, lease, or assign a product in the United States for ultimate transfer to consumers in the United States. (7) An "interested copyright party" is - (A) the owner of the exclusive right under section 106(1) of this title to reproduce a sound recording of a musical work that has been embodied in a digital musical recording or analog musical recording lawfully made under this title that has been distributed; (B) the legal or beneficial owner of, or the person that controls, the right to reproduce in a digital musical recording or analog musical recording a musical work that has been embodied in a digital musical recording or analog musical recording lawfully made under this title that has been distributed; (C) a featured recording artist who performs on a sound recording that has been distributed; or (D) any association or other organization - (i) representing persons specified in subparagraph (A), (B), or (C), or (ii) engaged in licensing rights in musical works to music users on behalf of writers and publishers. (8) To "manufacture" means to produce or assemble a product in the United States. A "manufacturer" is a person who manufactures. (9) A "music publisher" is a person that is authorized to license the reproduction of a particular musical work in a sound recording. (10) A "professional model product" is an audio recording device that is designed, manufactured, marketed, and intended for use by recording professionals in the ordinary course of a lawful business, in accordance with such requirements as the Secretary of Commerce shall establish by regulation. (11) The term "serial copying" means the duplication in a digital format of a copyrighted musical work or sound recording from a digital reproduction of a digital musical recording. The term "digital reproduction of a digital musical recording" does not include a digital musical recording as distributed, by authority of the copyright owner, for ultimate sale to consumers. (12) The "transfer price" of a digital audio recording device or a digital audio recording medium - (A) is, subject to subparagraph (B) - (i) in the case of an imported product, the actual entered value at United States Customs (exclusive of any freight, insurance, and applicable duty), and (ii) in the case of a domestic product, the manufacturer's transfer price (FOB the manufacturer, and exclusive of any direct sales taxes or excise taxes incurred in connection with the sale); and (B) shall, in a case in which the transferor and transferee are related entities or within a single entity, not be less than a reasonable arms-length price under the principles of the regulations adopted pursuant to section 482 of the Internal Revenue Code of 1986, or any successor provision to such section. (13) A "writer" is the composer or lyricist of a particular musical work. -SOURCE- (Added Pub. L. 102-563, Sec. 2, Oct. 28, 1992, 106 Stat. 4237.) -REFTEXT- REFERENCES IN TEXT Section 482 of the Internal Revenue Code of 1986, referred to in par. (12)(B), is classified to section 482 of Title 26, Internal Revenue Code. -MISC1- EFFECTIVE DATE Pub. L. 102-563, Sec. 4, Oct. 28, 1992, 106 Stat. 4248, provided that: "This Act [see Short Title of 1992 Amendments note set out under section 101 of this title] and the amendments made by this Act shall take effect on the date of the enactment of this Act [Oct. 28, 1992]." -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 1006, 1007 of this title. -End- -CITE- 17 USC SUBCHAPTER B - COPYING CONTROLS 01/19/04 -EXPCITE- TITLE 17 - COPYRIGHTS CHAPTER 10 - DIGITAL AUDIO RECORDING DEVICES AND MEDIA SUBCHAPTER B - COPYING CONTROLS -HEAD- SUBCHAPTER B - COPYING CONTROLS -End- -CITE- 17 USC Sec. 1002 01/19/04 -EXPCITE- TITLE 17 - COPYRIGHTS CHAPTER 10 - DIGITAL AUDIO RECORDING DEVICES AND MEDIA SUBCHAPTER B - COPYING CONTROLS -HEAD- Sec. 1002. Incorporation of copying controls -STATUTE- (a) Prohibition on Importation, Manufacture, and Distribution. - No person shall import, manufacture, or distribute any digital audio recording device or digital audio interface device that does not conform to - (1) the Serial Copy Management System; (2) a system that has the same functional characteristics as the Serial Copy Management System and requires that copyright and generation status information be accurately sent, received, and acted upon between devices using the system's method of serial copying regulation and devices using the Serial Copy Management System; or (3) any other system certified by the Secretary of Commerce as prohibiting unauthorized serial copying. (b) Development of Verification Procedure. - The Secretary of Commerce shall establish a procedure to verify, upon the petition of an interested party, that a system meets the standards set forth in subsection (a)(2). (c) Prohibition on Circumvention of the System. - No person shall import, manufacture, or distribute any device, or offer or perform any service, the primary purpose or effect of which is to avoid, bypass, remove, deactivate, or otherwise circumvent any program or circuit which implements, in whole or in part, a system described in subsection (a). (d) Encoding of Information on Digital Musical Recordings. - (1) Prohibition on encoding inaccurate information. - No person shall encode a digital musical recording of a sound recording with inaccurate information relating to the category code, copyright status, or generation status of the source material for the recording. (2) Encoding of copyright status not required. - Nothing in this chapter requires any person engaged in the importation or manufacture of digital musical recordings to encode any such digital musical recording with respect to its copyright status. (e) Information Accompanying Transmissions in Digital Format. - Any person who transmits or otherwise communicates to the public any sound recording in digital format is not required under this chapter to transmit or otherwise communicate the information relating to the copyright status of the sound recording. Any such person who does transmit or otherwise communicate such copyright status information shall transmit or communicate such information accurately. -SOURCE- (Added Pub. L. 102-563, Sec. 2, Oct. 28, 1992, 106 Stat. 4240.) -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 114, 115, 1009, 1010 of this title. -End- -CITE- 17 USC SUBCHAPTER C - ROYALTY PAYMENTS 01/19/04 -EXPCITE- TITLE 17 - COPYRIGHTS CHAPTER 10 - DIGITAL AUDIO RECORDING DEVICES AND MEDIA SUBCHAPTER C - ROYALTY PAYMENTS -HEAD- SUBCHAPTER C - ROYALTY PAYMENTS -End- -CITE- 17 USC Sec. 1003 01/19/04 -EXPCITE- TITLE 17 - COPYRIGHTS CHAPTER 10 - DIGITAL AUDIO RECORDING DEVICES AND MEDIA SUBCHAPTER C - ROYALTY PAYMENTS -HEAD- Sec. 1003. Obligation to make royalty payments -STATUTE- (a) Prohibition on Importation and Manufacture. - No person shall import into and distribute,

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