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or manufacture and distribute, any digital audio recording device or digital audio recording medium unless such person records the notice specified by this section and subsequently deposits the statements of account and applicable royalty payments for such device or medium specified in section 1004. (b) Filing of Notice. - The importer or manufacturer of any digital audio recording device or digital audio recording medium, within a product category or utilizing a technology with respect to which such manufacturer or importer has not previously filed a notice under this subsection, shall file with the Register of Copyrights a notice with respect to such device or medium, in such form and content as the Register shall prescribe by regulation. (c) Filing of Quarterly and Annual Statements of Account. - (1) Generally. - Any importer or manufacturer that distributes any digital audio recording device or digital audio recording medium that it manufactured or imported shall file with the Register of Copyrights, in such form and content as the Register shall prescribe by regulation, such quarterly and annual statements of account with respect to such distribution as the Register shall prescribe by regulation. (2) Certification, verification, and confidentiality. - Each such statement shall be certified as accurate by an authorized officer or principal of the importer or manufacturer. The Register shall issue regulations to provide for the verification and audit of such statements and to protect the confidentiality of the information contained in such statements. Such regulations shall provide for the disclosure, in confidence, of such statements to interested copyright parties. (3) Royalty payments. - Each such statement shall be accompanied by the royalty payments specified in section 1004. -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 801, 802, 1004, 1009, 1010 of this title. -End- -CITE- 17 USC Sec. 1004 01/19/04 -EXPCITE- TITLE 17 - COPYRIGHTS CHAPTER 10 - DIGITAL AUDIO RECORDING DEVICES AND MEDIA SUBCHAPTER C - ROYALTY PAYMENTS -HEAD- Sec. 1004. Royalty payments -STATUTE- (a) Digital Audio Recording Devices. - (1) Amount of payment. - The royalty payment due under section 1003 for each digital audio recording device imported into and distributed in the United States, or manufactured and distributed in the United States, shall be 2 percent of the transfer price. Only the first person to manufacture and distribute or import and distribute such device shall be required to pay the royalty with respect to such device. (2) Calculation for devices distributed with other devices. - With respect to a digital audio recording device first distributed in combination with one or more devices, either as a physically integrated unit or as separate components, the royalty payment shall be calculated as follows: (A) If the digital audio recording device and such other devices are part of a physically integrated unit, the royalty payment shall be based on the transfer price of the unit, but shall be reduced by any royalty payment made on any digital audio recording device included within the unit that was not first distributed in combination with the unit. (B) If the digital audio recording device is not part of a physically integrated unit and substantially similar devices have been distributed separately at any time during the preceding 4 calendar quarters, the royalty payment shall be based on the average transfer price of such devices during those 4 quarters. (C) If the digital audio recording device is not part of a physically integrated unit and substantially similar devices have not been distributed separately at any time during the preceding 4 calendar quarters, the royalty payment shall be based on a constructed price reflecting the proportional value of such device to the combination as a whole. (3) Limits on royalties. - Notwithstanding paragraph (1) or (2), the amount of the royalty payment for each digital audio recording device shall not be less than $1 nor more than the royalty maximum. The royalty maximum shall be $8 per device, except that in the case of a physically integrated unit containing more than 1 digital audio recording device, the royalty maximum for such unit shall be $12. During the 6th year after the effective date of this chapter, and not more than once each year thereafter, any interested copyright party may petition the Librarian of Congress to increase the royalty maximum and, if more than 20 percent of the royalty payments are at the relevant royalty maximum, the Librarian of Congress shall prospectively increase such royalty maximum with the goal of having no more than 10 percent of such payments at the new royalty maximum; however the amount of any such increase as a percentage of the royalty maximum shall in no event exceed the percentage increase in the Consumer Price Index during the period under review. (b) Digital Audio Recording Media. - The royalty payment due under section 1003 for each digital audio recording medium imported into and distributed in the United States, or manufactured and distributed in the United States, shall be 3 percent of the transfer price. Only the first person to manufacture and distribute or import and distribute such medium shall be required to pay the royalty with respect to such medium. -SOURCE- (Added Pub. L. 102-563, Sec. 2, Oct. 28, 1992, 106 Stat. 4241; amended Pub. L. 103-198, Sec. 6(b)(1), Dec. 17, 1993, 107 Stat. 2312.) -REFTEXT- REFERENCES IN TEXT The effective date of this chapter, referred to in subsec. (a)(3), is Oct. 28, 1992. See Effective Date note set out under section 1001 of this title. -MISC1- AMENDMENTS 1993 - Subsec. (a)(3). Pub. L. 103-198 substituted "Librarian of Congress" for "Copyright Royalty Tribunal" after "may petition the" and for "Tribunal" before "shall prospectively". -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 1003, 1009 of this title. -End- -CITE- 17 USC Sec. 1005 01/19/04 -EXPCITE- TITLE 17 - COPYRIGHTS CHAPTER 10 - DIGITAL AUDIO RECORDING DEVICES AND MEDIA SUBCHAPTER C - ROYALTY PAYMENTS -HEAD- Sec. 1005. Deposit of royalty payments and deduction of expenses -STATUTE- The Register of Copyrights shall receive all royalty payments deposited under this chapter and, after deducting the reasonable costs incurred by the Copyright Office under this chapter, shall deposit the balance in the Treasury of the United States as offsetting receipts, in such manner as the Secretary of the Treasury directs. All funds held by the Secretary of the Treasury shall be invested in interest-bearing United States securities for later distribution with interest under section 1007. The Register may, in the Register's discretion, 4 years after the close of any calendar year, close out the royalty payments account for that calendar year, and may treat any funds remaining in such account and any subsequent deposits that would otherwise be attributable to that calendar year as attributable to the succeeding calendar year. -SOURCE- (Added Pub. L. 102-563, Sec. 2, Oct. 28, 1992, 106 Stat. 4242; amended Pub. L. 103-198, Sec. 6(b)(2), Dec. 17, 1993, 107 Stat. 2312.) -MISC1- AMENDMENTS 1993 - Pub. L. 103-198 struck out at end "The Register shall submit to the Copyright Royalty Tribunal, on a monthly basis, a financial statement reporting the amount of royalties under this chapter that are available for distribution." -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 801, 1006, 1009 of this title. -End- -CITE- 17 USC Sec. 1006 01/19/04 -EXPCITE- TITLE 17 - COPYRIGHTS CHAPTER 10 - DIGITAL AUDIO RECORDING DEVICES AND MEDIA SUBCHAPTER C - ROYALTY PAYMENTS -HEAD- Sec. 1006. Entitlement to royalty payments -STATUTE- (a) Interested Copyright Parties. - The royalty payments deposited pursuant to section 1005 shall, in accordance with the procedures specified in section 1007, be distributed to any interested copyright party - (1) whose musical work or sound recording has been - (A) embodied in a digital musical recording or an analog musical recording lawfully made under this title that has been distributed, and (B) distributed in the form of digital musical recordings or analog musical recordings or disseminated to the public in transmissions, during the period to which such payments pertain; and (2) who has filed a claim under section 1007. (b) Allocation of Royalty Payments to Groups. - The royalty payments shall be divided into 2 funds as follows: (1) The sound recordings fund. - 66 2/3 percent of the royalty payments shall be allocated to the Sound Recordings Fund. 2 5/8 percent of the royalty payments allocated to the Sound Recordings Fund shall be placed in an escrow account managed by an independent administrator jointly appointed by the interested copyright parties described in section 1001(7)(A) and the American Federation of Musicians (or any successor entity) to be distributed to nonfeatured musicians (whether or not members of the American Federation of Musicians or any successor entity) who have performed on sound recordings distributed in the United States. 1 3/8 percent of the royalty payments allocated to the Sound Recordings Fund shall be placed in an escrow account managed by an independent administrator jointly appointed by the interested copyright parties described in section 1001(7)(A) and the American Federation of Television and Radio Artists (or any successor entity) to be distributed to nonfeatured vocalists (whether or not members of the American Federation of Television and Radio Artists or any successor entity) who have performed on sound recordings distributed in the United States. 40 percent of the remaining royalty payments in the Sound Recordings Fund shall be distributed to the interested copyright parties described in section 1001(7)(C), and 60 percent of such remaining royalty payments shall be distributed to the interested copyright parties described in section 1001(7)(A). (2) The musical works fund. - (A) 33 1/3 percent of the royalty payments shall be allocated to the Musical Works Fund for distribution to interested copyright parties described in section 1001(7)(B). (B)(i) Music publishers shall be entitled to 50 percent of the royalty payments allocated to the Musical Works Fund. (ii) Writers shall be entitled to the other 50 percent of the royalty payments allocated to the Musical Works Fund. (c) Allocation of Royalty Payments Within Groups. - If all interested copyright parties within a group specified in subsection (b) do not agree on a voluntary proposal for the distribution of the royalty payments within each group, the Librarian of Congress shall convene a copyright arbitration royalty panel which shall, pursuant to the procedures specified under section 1007(c), allocate royalty payments under this section based on the extent to which, during the relevant period - (1) for the Sound Recordings Fund, each sound recording was distributed in the form of digital musical recordings or analog musical recordings; and (2) for the Musical Works Fund, each musical work was distributed in the form of digital musical recordings or analog musical recordings or disseminated to the public in transmissions. -SOURCE- (Added Pub. L. 102-563, Sec. 2, Oct. 28, 1992, 106 Stat. 4242; amended Pub. L. 103-198, Sec. 6(b)(3), Dec. 17, 1993, 107 Stat. 2312; Pub. L. 105-80, Sec. 12(a)(24), Nov. 13, 1997, 111 Stat. 1535.) -MISC1- AMENDMENTS 1997 - Subsec. (b)(1). Pub. L. 105-80 substituted "Federation of Television" for "Federation Television" before "and Radio Artists or any successor entity)". 1993 - Subsec. (c). Pub. L. 103-198 substituted "Librarian of Congress shall convene a copyright arbitration royalty panel which" for "Copyright Royalty Tribunal" in introductory provisions. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 802, 1007 of this title. -End- -CITE- 17 USC Sec. 1007 01/19/04 -EXPCITE- TITLE 17 - COPYRIGHTS CHAPTER 10 - DIGITAL AUDIO RECORDING DEVICES AND MEDIA SUBCHAPTER C - ROYALTY PAYMENTS -HEAD- Sec. 1007. Procedures for distributing royalty payments -STATUTE- (a) Filing of Claims and Negotiations. - (1) Filing of claims. - During the first 2 months of each calendar year after calendar year 1992, every interested copyright party seeking to receive royalty payments to which such party is entitled under section 1006 shall file with the Librarian of Congress a claim for payments collected during the preceding year in such form and manner as the Librarian of Congress shall prescribe by regulation. (2) Negotiations. - Notwithstanding any provision of the antitrust laws, for purposes of this section interested copyright parties within each group specified in section 1006(b) may agree among themselves to the proportionate division of royalty payments, may lump their claims together and file them jointly or as a single claim, or may designate a common agent, including any organization described in section 1001(7)(D), to negotiate or receive payment on their behalf; except that no agreement under this subsection may modify the allocation of royalties specified in section 1006(b). (b) Distribution of Payments in the Absence of a Dispute. - After the period established for the filing of claims under subsection (a), in each year after 1992, the Librarian of Congress shall determine whether there exists a controversy concerning the distribution of royalty payments under section 1006(c). If the Librarian of Congress determines that no such controversy exists, the Librarian of Congress shall, within 30 days after such determination, authorize the distribution of the royalty payments as set forth in the agreements regarding the distribution of royalty payments entered into pursuant to subsection (a), after deducting its reasonable administrative costs under this section. (c) Resolution of Disputes. - If the Librarian of Congress finds the existence of a controversy, the Librarian shall, pursuant to chapter 8 of this title, convene a copyright arbitration royalty panel to determine the distribution of royalty payments. During the pendency of such a proceeding, the Librarian of Congress shall withhold from distribution an amount sufficient to satisfy all claims with respect to which a controversy exists, but shall, to the extent feasible, authorize the distribution of any amounts that are not in controversy. The Librarian of Congress shall, before authorizing the distribution of such royalty payments, deduct the reasonable administrative costs incurred by the Librarian under this section. -SOURCE- (Added Pub. L. 102-563, Sec. 2, Oct. 28, 1992, 106 Stat. 4244; amended Pub. L. 103-198, Sec. 6(b)(4), Dec. 17, 1993, 107 Stat. 2312; Pub. L. 105-80, Secs. 9, 12(a)(25), Nov. 13, 1997, 111 Stat. 1534, 1535.) -MISC1- AMENDMENTS 1997 - Subsec. (a)(1). Pub. L. 105-80, Sec. 12(a)(25)(A), substituted "calendar year 1992" for "the calendar year in which this chapter takes effect". Subsec. (b). Pub. L. 105-80, Secs. 9, 12(a)(25)(B), substituted "After the period established" for "Within 30 days after the period established" and "each year after 1992" for "each year after the year in which this section takes effect". 1993 - Subsec. (a)(1). Pub. L. 103-198, Sec. 6(b)(4)(A), substituted "Librarian of Congress" for "Copyright Royalty Tribunal" before "a claim for" and for "Tribunal" before "shall prescribe". Subsec. (b). Pub. L. 103-198, Sec. 6(b)(4)(B), substituted "Librarian of Congress" for "Copyright Royalty Tribunal" before "shall determine whether" and for "Tribunal" wherever appearing. Subsec. (c). Pub. L. 103-198, Sec. 6(b)(4)(C), substituted first sentence for "If the Tribunal finds the existence of a controversy, it shall, pursuant to chapter 8 of this title, conduct a proceeding to determine the distribution of royalty payments.", substituted "Librarian of Congress" for "Tribunal" wherever appearing in second and third sentences, and "the reasonable administrative costs incurred by the Librarian" for "its reasonable administrative costs" in last sentence. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 801, 803, 1005, 1006 of this title. -End- -CITE- 17 USC SUBCHAPTER D - PROHIBITION ON CERTAIN INFRINGEMENT ACTIONS, REMEDIES, AND ARBITRATION 01/19/04 -EXPCITE- TITLE 17 - COPYRIGHTS CHAPTER 10 - DIGITAL AUDIO RECORDING DEVICES AND MEDIA SUBCHAPTER D - PROHIBITION ON CERTAIN INFRINGEMENT ACTIONS, REMEDIES, AND ARBITRATION -HEAD- SUBCHAPTER D - PROHIBITION ON CERTAIN INFRINGEMENT ACTIONS, REMEDIES, AND ARBITRATION -End- -CITE- 17 USC Sec. 1008 01/19/04 -EXPCITE- TITLE 17 - COPYRIGHTS CHAPTER 10 - DIGITAL AUDIO RECORDING DEVICES AND MEDIA SUBCHAPTER D - PROHIBITION ON CERTAIN INFRINGEMENT ACTIONS, REMEDIES, AND ARBITRATION -HEAD- Sec. 1008. Prohibition on certain infringement actions -STATUTE- No action may be brought under this title alleging infringement of copyright based on the manufacture, importation, or distribution of a digital audio recording device, a digital audio recording medium, an analog recording device, or an analog recording medium, or based on the noncommercial use by a consumer of such a device or medium for making digital musical recordings or analog musical recordings. -SOURCE- (Added Pub. L. 102-563, Sec. 2, Oct. 28, 1992, 106 Stat. 4244.) -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 115 of this title; title 19 section 1337. -End- -CITE- 17 USC Sec. 1009 01/19/04 -EXPCITE- TITLE 17 - COPYRIGHTS CHAPTER 10 - DIGITAL AUDIO RECORDING DEVICES AND MEDIA SUBCHAPTER D - PROHIBITION ON CERTAIN INFRINGEMENT ACTIONS, REMEDIES, AND ARBITRATION -HEAD- Sec. 1009. Civil remedies -STATUTE- (a) Civil Actions. - Any interested copyright party injured by a violation of section 1002 or 1003 may bring a civil action in an appropriate United States district court against any person for such violation. (b) Other Civil Actions. - Any person injured by a violation of this chapter may bring a civil action in an appropriate United States district court for actual damages incurred as a result of such violation. (c) Powers of the Court. - In an action brought under subsection (a), the court - (1) may grant temporary and permanent injunctions on such terms as it deems reasonable to prevent or restrain such violation; (2) in the case of a violation of section 1002, or in the case of an injury resulting from a failure to make royalty payments required by section 1003, shall award damages under subsection (d); (3) in its discretion may allow the recovery of costs by or against any party other than the United States or an officer thereof; and (4) in its discretion may award a reasonable attorney's fee to the prevailing party. (d) Award of Damages. - (1) Damages for section 1002 or 1003 violations. - (A) Actual damages. - (i) In an action brought under subsection (a), if the court finds that a violation of section 1002 or 1003 has occurred, the court shall award to the complaining party its actual damages if the complaining party elects such damages at any time before final judgment is entered. (ii) In the case of section 1003, actual damages shall constitute the royalty payments that should have been paid under section 1004 and deposited under section 1005. In such a case, the court, in its discretion, may award an additional amount of not to exceed 50 percent of the actual damages. (B) Statutory damages for section 1002 violations. - (i) Device. - A complaining party may recover an award of statutory damages for each violation of section 1002(a) or (c) in the sum of not more than $2,500 per device involved in such violation or per device on which a service prohibited by section 1002(c) has been performed, as the court considers just. (ii) Digital musical recording. - A complaining party may recover an award of statutory damages for each violation of section 1002(d) in the sum of not more than $25 per digital musical recording involved in such violation, as the court considers just. (iii) Transmission. - A complaining party may recover an award of damages for each transmission or communication that violates section 1002(e) in the sum of not more than $10,000, as the court considers just. (2) Repeated violations. - In any case in which the court finds that a person has violated section 1002 or 1003 within 3 years after a final judgment against that person for another such violation was entered, the court may increase the award of damages to not more than double the amounts that would otherwise be awarded under paragraph (1), as the court considers just. (3) Innocent violations of section 1002. - The court in its discretion may reduce the total award of damages against a person violating section 1002 to a sum of not less than $250 in any case in which the court finds that the violator was not aware and had no reason to believe that its acts constituted a violation of section 1002. (e) Payment of Damages. - Any award of damages under subsection (d) shall be deposited with the Register pursuant to section 1005 for distribution to interested copyright parties as though such funds were royalty payments made pursuant to section 1003. (f) Impounding of Articles. - At any time while an action under subsection (a) is pending, the court may order the impounding, on such terms as it deems reasonable, of any digital audio recording device, digital musical recording, or device specified in section 1002(c) that is in the custody or control of the alleged violator and that the court has reasonable cause to believe does not comply with, or was involved in a violation of, section 1002. (g) Remedial Modification and Destruction of Articles. - In an action brought under subsection (a), the court may, as part of a final judgment or decree finding a violation of section 1002, order the remedial modification or the destruction of any digital audio recording device, digital musical recording, or device specified in section 1002(c) that - (1) does not comply with, or was involved in a violation of, section 1002, and (2) is in the custody or control of the violator or has been impounded under subsection (f). -SOURCE- (Added Pub. L. 102-563, Sec. 2, Oct. 28, 1992, 106 Stat. 4245.) -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 1010 of this title. -End- -CITE- 17 USC Sec. 1010 01/19/04 -EXPCITE- TITLE 17 - COPYRIGHTS CHAPTER 10 - DIGITAL AUDIO RECORDING DEVICES AND MEDIA SUBCHAPTER D - PROHIBITION ON CERTAIN INFRINGEMENT ACTIONS, REMEDIES, AND ARBIT

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